ISTFIX Black Sea & Mediterranean Freight Index Report: 2014 Week 17

by Istanbul Freight Index, ISTFIX
Monday April 28, 2014

The 17th week's first working day was the Easter Monday, thus cargo flows mildly stabilized only after mid-week, brokers recount. Still, the activity did not seem to provide a healthy gauge as most of the European offices were still somewhat understaffed. Existing limited number of shipments were fixed at encouraging rates as vessels had been booked in advance through the holidays.

Ex-Black Sea 5.500 tonnes of barley was fixed from Kherson to Ashdod at 30 USD a tonne. Due to stowage (stf 55) cargo was shipped with a 6.500 dwt unit and averaged about 25 USD on 1/1 stowage basis.

5.000 tonne corn parcels from Reni to North Adriatic nowadays offer as high as 36-38 USD with normal loading/discharge rates. Prior to Christmas when there was a temporary boom in the market, same parcels were fixing at excess-40 USD a tonne levels. Rates are not there yet but it seems the market is improving gradually.

From Central Mediterranean, 5.000 tonne steel cargoes to Black Sea were seen offering mid-teens as usual. In such shipment, 6.000 tonnes of steels fetched 17 USD from Taranto to Thessaloniki & Marmara with average loading & discharge terms.

6.000 tonnes of rebars from Marina di Carrera to Skikda was seen quoting 23 USD a tonne with very slow loading/discharge terms. Although the rate was somewhat considerable at first sight, slow discharge made the cargo less appealing compared to longer haul Adriatic-Algeria shipments.

Despite some "anomalies" observed until 48 hours before Easter, Baltic, Continent and North Sea freight rates started to re-balance after the rush and consequent stasis last week. Berlin based BMTI reported that average trend remained sideways to downward within the week. Mineral shipments of 3.000 tonnes from Baltic to Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) remained stable at 16 EUR per tonne. On longer haul, similar parcels from Southern Baltic to Ireland fetched 20 EUR per tonne while ARAG-Ireland fixtures remained at 17-18 EUR per tonne. 3.000 to 5.000 dwt U.K. East Coast – Portugal shipments were seen fixing around 23-24 EUR per tonne.

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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