ISM Freight Market Weekly Digest // week 38
International Seaborne Market
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The market has finally seen some positive signs amid a gradual increase of grain offer, especially from Ukraine towards the EU countries as well as from CVB, Russia and Ukraine to Asia. However, the list of vessels open for late September-1H October dates remains quite long, therefore owners can achieve only minor gains.
The cargo flow is still rather dull in the region. Players note regular requests for transportation of fertilizers, grain, steel scrap and coal. However, export volumes of these cargoes stay moderate. At the same time, some players report that they face difficulties in finding tonnage for September dates, which adds some optimism to ship owners, allowing to voice rates above last done.
Due to limited offer of fresh cargoes, the ECSA Smx/Umx market activity has declined and owners with vessels in spot positions have to revise their ideas downwards. Note that because of unattractive rates in ECSA, vessels open in WAfr are not yet considering the ballast to this region, which removes some extra pressure from rates as tonnage list is not growing.
The Supramax/Ultramax market has flattened out in the Asia-Pacific region, with lack of involvement from Chinese participants leading to limited coal traffic from Indonesia as well as slower steel shipments from the Far East. A Supramax vessel has been chartered at low-mid $14s k daily bss dely SE Asia redel China. In the meantime, a similar deal for an Ultramax carrier is negotiated at $16k daily.
Despite relatively steady cargo flow ex Azov Sea ports, most sea-river owners succeed in getting bit higher rates this week. Market players refer this to another positional shortage of vessels in the area, particularly due to continuous winds and, therefore, low water levels in Rostov and Azov. Most charterers are ready to pay $25-26/t for shipment of 3,000 t of grains (sf up to 50`) from Rostov/Azov to Marmara, while owners are seeking to get $27-28/t.
Small-tonnage market activity keeps rising gradually in the Black Sea due to brisker grain offer ex Ukrainian ports. However, it is still very difficult for ship owners to get higher rates. Italy and Greece are the most popular destinations for Ukrainian grain these days. Most owners are seeking to get $28-30/t for transportation of 5-6,000 t of wheat or corn from Izmail or Odesa to the Italian Adriatic bss 1/1, while most charterers are ready to pay $26-27/t for such shipments.
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Sea-river owners achieved the highest increases in freight rates this week
Trends mixed, rates vary depending on a route
Rates totally stalled in Asia, while those up somewhat in Atlantics
ECSA looks the only bright spot for owners this week
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