In the deep sea market, many Handy/Supramax ship owners have left the Black Sea and moved to the Baltic and Continent due to lack of cargo and low rates, Sea Lines shipbrokers report. It is more profitable for them to take shipments of fertilizers to South / North America from the Baltic, which will later allow them to easily move to the Asian region, where rates continue to rise. Ship owners are trying to avoid or even exclude any cargo to India due to the disastrous epidemiological situation. Calling India may affect ships not only by an increase in voyage time, but also by a 2-week quarantine.
On week 19, freight rates for 30,000-35,000 dwt bulkers from Ust-Luga remained on about the previous week’s level.
According to Sea Lines, rates on the Ust-Luga – Continent – Ust-Luga were $20 pmt, rates from Ust-Luga to North Spain were $23 pmt, and those to Casablanca were $27.25 pmt.
Rates from Ust-Luga were $31 pmt to West Med rates, and $36.5 pmt to East Med.
Rates for 30,000-35,000 dwt bulkers from Ust-Luga to the Black Sea amounted to $37 pmt.
A similar situation is observed in the Baltic short sea market, where there is a large flow of fertilizers to inland ports of the Baltic Sea as well as to the UK. Many ship owners get out of annual contracts, so more tonnage appears in the market, which leads to competitive rates. Many vessels, which came from the Black and Mediterranean Seas are opening in the ports of ARAG and in the Baltic looking for back cargo.
However, some ship owners note that they do not mind staying in this region, since there is a shortage of shipments for the small tonnage in the Black Sea. As for the rates, they remain at the level of the previous weeks, as the demand for ships and fuel prices is still stable.
On week 19, freight rates for 3,000-5,000 dwt bulkers from Ust-Luga changed little.
Thus, rates from Ust-Luga to Riga made €14.5 pmt and those to Gdansk were €17 pmt.
Freight rates from Ust-Luga made €19 pmt to Szczecin, €23.75 to Flensburg, and €28 to Hamburg.
Rates from Ust-Luga were €29pmt to ARAG, €37.75 pmt to East Britain, €39.75 pmt to West Britain, and €40.5 pmt to Dublin.
Please note that the rates cited in this article are average market rates. We ask our readers to pay attention that this information is not a commercial offer and cannot be an example for comparison in commercial disputes and arbitration.