ISTFIX Black Sea & Mediterranean Freight Index Report: 2014 Week 15

by Istanbul Freight Index, ISTFIX
Monday April 14, 2014

After a bearish week, freight rates gathered steam and edged higher again as brokers predicted. Intra-Black Sea offers rose by at least one USD/tonne while Black Sea-Mediterranean and Intra Mediterranean recovered previous week's losses partially.

In this week's fixtures 5.500 tonnes of corn from Berdyansk to Libya was shipped for 33 USD a tonne on reasonable terms. The rate suggests a drop of 2 USD a tonne compared to a month ago but nevertheless stable compared to previous week.

5.000 tonne coals from Novorossiysk to Marmara which were seen offering 15 USD per tonne last week, quickly bounced back to 16 USD a tonne average.

As for Central Mediterranean, in a small coaster shipment, 1.400 tonne of wheat was fixed from Malta to Israel for about 49 USD per tonne. The ship owner said that his vessel was luckily open in Palermo and that the rate earned more than 2.200 USD a day. Similarly, 3.000 tonnes of alfalfa (stf 60) parcel was offered at about 34,5 USD per tonne with slower discharge from Ravenna to Haifa.

In larger shipments, 8.200 tonnes of steels from North Adriatic to Annaba this week quoted 22 USD per tonne with slower loading/discharge terms. Brokers comment that the rate was at least 3 USD per tonne lower than last done levels.

In the Western Mediterranean, 5.500 tonne cements from North Spain or Portugal to Algeria nowadays offer mid-high 20 USD/tonne levels, at least about 3 USD per tonne lower than last done levels.

Strong tonnage supply versus stagnant cargo flows have puts charterers in comparably better negotiation position against owners this week across Baltic, Continent and North Sea waters according to Berlin based BMTI. Resembling the previous week's movements in the Mediterranean, Baltic and Continent freight rates tumbled by about 1 to 2 EUR/tonne.

This week, 4.000 tonne fertilizers ex-Baltic to Ireland were see fetching 23-24 EUR per tonne down from mid-20's last week. On the way back, generals from Amsterdam-Rotterdam-Antwerp- Ghent (ARAG) quote about 10-12 EUR per tonne, again down about 2-3 EUR per tonne compared to late March.

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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