ISM Freight Market Weekly Digest // week 9
International Seaborne Market
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Timid signs of slightly higher activity and positive impetus from the Continent have been circulating on the Mediterranean Handysize market for the 3rd consecutive week. However, this region stays overtonnaged, allowing charterers to restrain the rate increase. Inter-Med deals for Handysize fleet are already discussed at around $5k daily bss dely passing Canakkale and at $7k daily bss dely APS CVB or Sulina entrance.
Demand for tonnage is supported by lively shipments of fertilizers, scrap and agri products. Ship owners feel more confident and try to sign deals above previous freight levels. The deal for transportation of about 30,000 t of wheat from Rostock to Morocco has been signed at $19/t with 10000x/5000x l/d rates and mid-March laycansm which is equivalent to around $13k daily.
ECSA Smx/Umx rates have resumed growing amid a healthy activity in SAfr, as ballasters from WAfr now prefer to stay in the area and look towards South Africa instead of putting pressure on the ECSA market. TCT rates for Ultramax fleet bss dely ECSA redel FEast are hovering at $13k daily + $300k bb, those for large Supramax vessels at $11-12k daily + $100-200k bb on average. The Handysize market stays active, though rates are flat this week.
Despite a slowdown of Indonesian coal imports by China, the cargo traffic from SE Asia is still generally brisk, with lively steel exports from China lending support to owners as well. The deal for shipment of an Ultramax lot of coal from S.Kali to WCI with early March laycans has been signed at mid-$13s/t (equivalent to $14k daily bss dely Spore). In the Handysize/Handymax sector, Handysize time-charter rates bss dely CJK redel USG are voiced by brokers below $10k daily.
After some minor increase in mid-February, the cargo traffic from Black Sea ports has stabilized at rather low levels. However, ship owners continue insisting on higher rates while discussing shipments from Ukraine, especially from the Danube ports. Thus, several charterers target $27/t for shipment of 6-6,500 t of corn or soybeans from Izmail to the Italian Adriatic, while owners are seeking to get at least $30/t or more (equivalent to $1.6-1.9k daily vs. $2.1-2.4k daily bss RV or $1k daily more bss dely Marmara, or $1.7k daily more bss dely Sulina).
The small-tonnage market picture has been generally stable in the Mediterranean Sea for almost a month. The cargo flow is supported by shipments of fertilizers, steel scrap and minerals (in moderate volumes). There are no difficulties with vessel search as the overall tonnage list remains long. The deal for transportation of 4,000 t of urea from EgyptMed to FrenchMed has been signed at around $30/t, which is equivalent to $4.5k daily for one laden leg; brokers suggest €16-17/t for transportation of 2.5-3,000 t of scrap (sf 70`) from Malta to Nemrut, which gives the TCE closer to $1.6k daily for one laden leg.
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Shifts for better finally seen in Azov-Black Sea basin
Despite quiet trade in some exceptions, overall sentiment generally optimistic
ECSA remains the only bright spot on the weakening?Panamax/Kamsarmax market
Cape owners keep strengthening their position?, successfully raising rates
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