ISTFIX Black Sea & Mediterranean Freight Index Report: 2014 Week 6

by Istanbul Freight Index, ISTFIX
Thursday February 13, 2014

Freight rates across Black Sea sustained sideways movement this week while Eastern Mediterranean weakened.

Western Mediterranean rates on the other hand, remained strong, with actual fixtures well exceeding circulated ideas. This means serious charterers are starting negotiations reasonably above the market levels.

This week one 6.500 tonne ammonium nitrate parcel was shipped from Novorossiysk to Jorf Lasfar for 41 USD a tonne and with fast loading and discharge terms. Compared to Constanta-Algeria fertilizer shipment reported last week at 45 USD a tonne with markedly slower operations, this rate suggested a mild increase.

6.500 tonnes of ferroalloy cargo to be shipped from Illichevsk to Rotterdam was offering 45 USD per tonne, again comparable to 5.000 tonnes of steels offered for 51 USD a tonne from Odessa to U.K. previous week. Again, overall earnings were slightly better.


Some 5.000 tonnes of billets were seen offering 15-16 USD a tonne from Novorossiysk to Aliaga but brokers commenting on the quote said that break-even rate for that shipment should at least be 18-19 USD. 4.500 tonnes of soy beans, for instance, was fixed for 22 USD a tonne from Nikolaev to Marmara, which was a much better alternative in the region.

In the East-Central Mediterranean, 4.300 tonnes of coils to be shipped from Egypt to Portugal were offered at high-30 USD a tonne with reasonably fast terms to an over-aged vessel. As the cargo potentially earned well and relocated the vessel in the Western Mediterranean, it was worth mentioning. 

Speaking of the West Mediterranean, 3.500 tonnes of clay was offered this week at 28,5 EUR per tonne from Aveiro to Alexandria with slow terms but the owner reporting the cargo offer said he was fixing chipboards to Casablanca for 65.000 EUR lump sum with similar terms and getting more than 4.000 USD per day, that is, excluding ballast returns to West Mediterranean.

According to this week's BMTI report, Baltic and North Sea freight markets were resilient while Continent rates were facing some pressure due to weather affecting trade. TC earnings remained unchanged compared to the previous week.

According to Berlin based freight analyst, vessels with ice class can earn 23 to 24 EUR per tonne on 3.000 to 5.000 tonne cargoes from St. Petersburg to Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) area.

General cargoes of same size nowadays offer 16,5 EUR per tonne from ARAG to U.K. west coast.

About ISTFIX

ISTFIX is an independent research company which since 2008 concentrates on 2.000 to 10.000 dwt bulk carrier / general cargo vessels trading across Black Sea - Mediterranean waters.

Reports are compiled from information and fixture data gathered from owners, brokers and operators in the region and are presented in good faith to provide an unbiased benchmark for this coastal trade market. For more information and to sign up for the weekly ISTFIX email please visit ISTFIX.com.

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