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International Seaborne Market

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July 13, 2015

BLACK SEA / MED / BALTIC / CONTINENT

Lack of available Supra and Handy vessels in Black Sea supports a steady increase in freight and TCT rates______ 2
Owners of sea-river ships keep insisting on higher freight quotes in Azov Sea successfully___________________ 3
Charterers still hold coaster freight rates stable in Black Sea despite shipowners aggressive efforts to push them up____4
Ukraine to cut disbursements for vessels with transit cargoes__________________________________________ 5
ISM Commodity Index: Black Sea freight rates to stabilize in early August after slight increase in late July ______ 5
Grain shipments from Aktau terminal to be halted July 15-31 due to routine maintenance___________________ 5
Rosmorport plans dredging on the river part of Azov-Don Sea Canal____________________________________ 5
Shipowners succeed in lifting TCT rates for Handy and Supra tonnage in Baltic & Continent
despite rather small traffic volume________________________________________________________________ 6
Shortsea freight rates have gone down by 0.5-1/t in North Sea________________________________________ 7
Norilsk Nickel develops transshipment terminal in Murmansk__________________________________________ 7
Rapeseed supplies from France to UK about to start__________________________________________________ 8
France to build 8 billion Seine-Nord Europe Canal___________________________________________________ 8

USG / USEC / NCSA / ECSA / WAFR

Freight and TCT rates for Supra and Handy shipments ex USG and ECSA on the rise________________________ 9
Atlantic Panamax market keeps improving________________________________________________________ 10

INDIAN OCEAN / PG / SEA / NOPAC

TCT rates keep tending down in Asia-Pacific amid slack cargo offer_____________________________________ 12
Large-tonnage freight rates started to go up on some routes in Indian Ocean____________________________ 12
Chinas COFCO in talks to raise stake in grain trader Nidera ___________________________________________ 13
Bunkering operations in North Asia under threat of typhoons_________________________________________ 13
Huaying starts building 300,000-tonne fuel terminal_________________________________________________ 13

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BLACK SEA / MED / BALTIC / CONTINENT

Lack of available Supra and Handy vessels in Black Sea
supports a steady increase in freight and TCT rates
The costs of Handysize and Supramax cargo transportation keep growing in the freight market of the Black and Mediterranean
Seas this week. However, according to brokers, an increase in time-charter rates has been caused more by the shortage of available
Handysize and especially Supramax ships in the basin than by the stronger offer of grain cargoes (though all market players mention
the growing number of requests for grain transportation). The strong markets of South America and the US Gulf, where many
bulkers have been transferred to, as well as a shortage of Panamax fleet in the Mediterranean basin, that has forced many charterers
to switch to cargo supplies by smaller dwt ships, give a considerable support to local shipowners.
The time-charter rates keep sliding up in the region. The owners of 30,000 dwt Handysize vessels insist on $6-7k daily for
cargo transportation bss dely passing Canakkale via BlSea redel EMed, though most deals are still signed at $5-6k daily. A similar
ship has been chartered at $10k daily for carrying grain bss dely BlSea redel Red Sea. The time-charter rate of $6.75k daily bss
dely Croatia redel Adriatic has been announced for a Handysize vessel this week. The Handysize owners ask $5.5k daily for cargo
transportation on the route the Black Sea - the Gulf of Mexico, though a similar shipment has been made at $5k daily this week.
The time-charter rates for Supramax fleet bss dely passing Canakkale via BlSea redel Feast are negotiated at $10-11k daily, while
the shipowners insist on at least $11k daily bss PG redelivery. Almost a 50,000 dwt Handymax vessel has been chartered at $9k
daily bss dely CMed via WMed WAfr.
The rates on the voyage-basis have also inched up even despite a significant drop in prices for gas oil and IFO in the regional
ports. So, charterers are ready to pay $10.5-11/t for transportation of 25-30,000 t of wheat from Odessa to Alexandria. Carrying
a similar lot of grain from Romania to Israel is negotiated at $10.5-10.75/t. A 15,000 t lot of the cargo is supplied from Constanta
to the ARA ports at $17/t. Shipping a Handy-lot of wheat from Russia to Indonesia is estimated at $32-34/t. It costs $27/t to have
50,000 t of maize transported from Ukraine to northern China.
Next week, the freight and time-charter rates may stabilize in the Black Sea region if the offer of grain of the new crop becomes
stronger in the market.

Wheat, 25,000t, Constanta - Alexandria, $/tonne

Urea, 25,000t, Yuzhny - Santos, $/tonne

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Time-charter-trip rates, $/day

BlSea & Med. Current Supramax TCT rates bss delivery

passing Canakkale
intramed route

6-6.5k daily

BlSea - PG/India

10-11k daily

BlSea - SEA
BlSea - UK/Continent
BlSea - USG/USEC
EMed - WAfr

9.5-10.5k daily
4-5k daily
4k daily
8-9k daily

BlSea & Med. Current Handysize abt 30,000 dwt TCT rates bss delivery
passing Canakkale
BlSea - PG/India
BlSea - SEA

8-9k daily
7-8k daily

BlSea - WMed

5-5.5k daily

BlSea - EMed

5-5.75k daily

BlSea - ECSA

4-4.5k daily

Click here to see more data on current Handy&Supra freight rates in Black Sea

Owners of sea-river ships keep insisting on higher freight quotes

in Azov Sea successfully
The cargo traffic has increased slightly in the Azov Sea freight market closer to July 10. Meanwhile, the number of firm offers of
grain for spot shipments is small in the region, market participants say. Nevertheless, the owners of sea-river vessels keep trying to
push the freight rates up. The charterers and shipowners freight ideas differ by about $4-5/t, the gap sometimes reaches $10/t for
cargo supplies with forward laycan dates. The charterers are ready to pay $16-17/t for wheat transportation from Azov to the Black
Sea ports of Turkey, while the shipowners insist on at least $20/t. Spot deals for the supply of a similar lot of grain from Azov to
the Marmara Sea are negotiated at $20-21/t, to Mersin at $31-32/t. The charterers voice their ideas for transportation of 3,000 t of
grain from Yeisk to the Marmara Sea ports at $18/t. The shipping volume of steel scrap has declined slightly compared to the second
half of June. Carrying 2,5-3,000 t of the material from Rostov to the Marmara Sea is now quoted at $23-24/t, to Izmir at $26-27/t.

Wheat, 3,000t, Azov - Marmara Sea ports, $/tonne

Scrap, 3,000t, Rostov - Marmara Sea ports, $/tonne

Click here to see more data on current coaster freight rates in Azov Sea
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Charterers still hold coaster freight rates stable in Black Sea despite
shipowners aggressive efforts to push them up
The shipowners have failed to raise the freight quotes in the Black Sea so far. The number of available sea-going vessels remains
large, that helps charterers hold the rates at an acceptable level. However, a surge in prices for marine fuel last week allows
the shipowners to get by $50-200 daily more compared to early July.
Steel products, steel scrap and agricultural products remain the most popular cargoes for transportation in the basin. Shipping
fees for 3,000 t of wheat from Nikolayev to the Marmara Sea have stayed at $17.5-18/t. A 6,000 t lot of steel (sf 56`) is exported from
Ukraine to Morocco at $29/t. A similar lot of maize is supplied from Constanta to Libya at $22/t. Carrying 12,000 t of grain from
Romania to the ARA ports is negotiated at $18-19/t. The shipowners ask $28/t for transportation of 7,000 t of maize from Bulgaria
to Morocco. A contract for the supply of 3,000 t of wheat from Braila to Greece has been fixed at $21/t. The charterers are ready to
pay the same fee for shipment of 3,000 t of wheat from Constanta to Sicily. A 10,000 t lot of urea from Tuapse to the Mediterranean
ports of Turkey has been fixed at $15/t. It costs $24/t to have 4,000 t of fertilizers carried from the same port to the Adriatic Sea.
The transportation of 11,000 t of clay from Berdyansk to Castellon is charged at $19/t. A 6,000 t lot of the material is shipped from
Oktyabrsk to the Marmara Sea ports at $13.5/t. The shipowners insist on $65k and $60k bss lumpsum for steel scrap transportation
by a Volga-Balt vessel to the Marmara Sea ports from Nikolayev and Odessa respectively.
The freight rates may go up in the Azov-Black Sea basin next week only if grain shipments from Ukraine, Romania, Bulgaria and
Russia get much brisker.

Wheat, 5,000t, Odessa - Adriatic Sea ports, $/tonne

Steel, 5,000t, Oktyabrsk - Marmara Sea ports, $/tonne

Average round voyage TCE (given backhaul leg in ballast), $/day

Average round voyage TCE (given backhaul leg in ballast), $/day
Route

Current TCE, $/day

w-o-w

BlSea - Med RV, minibulker

10,000 DWCC

2180

+130

BlSea - Marmara RV,

seagoing vsl 5,000 DWCC

2030

+60

BlSea - Marmara RV,

seagoing vsl 3,000 DWCC

1500

+50

Azov Sea - Marmara RV,

sea-river vsl 3,000 DWCC

1230

+180

Click here to see more data on current coaster freight rates

in Black Sea

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Ukraine to cut disbursements for vessels with transit cargoes

According to Ukraines Ministry of Infrastructure, a 50% discount on disbursements for ships carrying transit cargoes will be in
force in the Ukrainian ports for 6 months. According to the Minister, the 6-months pilot project on disbursements reduction has been
initiated in order to increase the traffic of transit cargoes. According to ISM, a 50% reduction of port fees will allow the charterers to
get lower freight rates for transportation of transit cargoes. In case of stable market situation, particularly, the steady time-charter
rates in the Black Sea region, the shippers may insist on about a $1-1.5/t cut for supplies by coasters and Handysize fleet from
the ports of Nikolayev and Mariupol, on a $0.75-1/t reduction for Handysize and Supramax shipments from Odessa and Ilyichevsk,
and on a $1-1.25/t decrease for transportation by Supramax, Panamax and Capesize vessels from the port of Yuzhny. It should be
noted that coal supplied from Nikolayev, Mariupol and Izmail, fertilizers carried from Ilyichevsk, Nikolayev and Kherson, as well as
iron ore shipped from Yuzhny are now the most popular transit cargoes.
For ships, entering the Ukrainian seaports for loading and/or discharge of transit cargoes, the discount of 50% from all rates of
port dues besides the administration one will be applied.
It should be added that, according to the draft law, the term transit cargo implies the cargoes being transported from
the departure points to the destination points outside the territory of Ukraine.

ISM Commodity Index: Black Sea freight rates to stabilize

in early August after slight increase in late July
ISM BlSea Commodity Index
Over the week 28, ISM BlSea Commodity Index
has sagged by 1.7 points, that allows to expect
the freight rates to stabilize or even to inch down
in the Black Sea in early August after a slight
increase in late July.
Commodity Index was designed by ISM as
a tool to predict the freight level in a given region
for the period of 4 weeks. Black Sea Commodity
Index is a weighted average of export prices for
main types of dry cargoes, such as grain, steel,
coal, fertilizers, raw materials.

Grain shipments from Aktau terminal to be halted July 15-31

due to routine maintenance
The grain terminal in Aktau port will be closed for routine maintenance from July 15 till August 1, according to market participants.
Such works are performed at the main grain terminal of the Kazakh port every year in the second half of summer ahead of a new
grain season. In the past two months, shipments of grain from Aktau were rather slack (monthly volumes did not exceed 40,000 t
in May and June).
At present, carrying 3-5,000 t of grain from Aktau to Amirabad costs $16/t on average.

Rosmorport plans dredging on the river part of Azov-Don Sea Canal

Federal state-owned company Rosmorport is going to start dredging works on the river part of the Azov-Don Sea Canal. This
should provide maintenance of 4.5-4.9 m navigation depths and ensure safe navigation in the approaches to the ports of Azov and
Rostov-on-Don. The works are to be completed by the end of November 2015.
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The works includes dredging at three sites of a total area of 1.56 hectares, with a total length of 2.4 km:
- site No. 1 of 500 m long and 27 m wide, located in Sandy Girlie (3,180.35-3,179.85 km of the Don River);
- site No. 2 of 1.25 km long and 32 m wide, located at the approach to Sandy Girlie (3,179.62-3,178.37 km of the Don River);
- site No. 3 of 650 m long and 27-52 m wide, located in Uzyaksky rift (3,174.2-3,173.55 km of the Don River).
More than 85,600 cu m of sediment are projected to be dredged, out of which 11,900 cu m from site No. 1, 53,600 cu m from
site No. 2 and 20,100 cu m from site No. 3.
Azov-Don Sea Canal is situated in the north-eastern part of Taganrog Bay of the Azov Sea. It is 39.3 km long (25.3 km is a sea part
and 14 km is a river part). The Canal together with the part of the Don River from the mouth to Aksai Kovsh forms an integrated
waterway for the vessels heading from the Gulf of Taganrog to the ports of Azov and Rostov-on-Don.

Shipowners succeed in lifting TCT rates for Handy and Supra tonnage
in Baltic & Continent despite rather small traffic volume
The Handysize cargo flow from the ports of the Baltic & Continent remains dull this week. The requests for supplies of agricultural
products, fertilizers and ferrous raw materials are sporadic. At the same time, our sources report a limited number of vessels available
for spot/prompt cargo shipments. The shipowners have managed to lift most freight rates by $0.25-0.5/t over the week, though there
have been no particular reasons for such an increase. ISM experts quote the transportation of 25-30,000 t of fertilizers from Klaipeda
to Brazil at $20-21/t. It costs $14/t to have 25,000 t of grain exported from Rouen to Algeria. A contract for the supply of a small
Handy-lot of steel products from Latvia to Algeria has been concluded at $30/t, that is quite a successful deal for the shipowner.
The Handysize time-charter bss APS dely Continent redel EMed is estimated at about $9.5k daily, that bss APS dely Continent redel
Algeria-Morocco at about $8.5-9k daily.
The Supramax owners have managed to raise the freight quotes by $0.5/t on average despite the fact that the commodity
flow has remained slack in this segment. According to our estimates, a 45,000 t lot of steel scrap may be shipped from Antwerp to
the Marmara Sea ports at $13-14/t. The average time-charter rate for a Supramax vessel on this route amounts to about $9.75k daily
under the APS terms, that for shipments to the Far East to $10.25k daily.
In mid-July, the costs of cargo transportation by Handysize and Supramax fleet will hardly grow further in the Baltic & Continent,
though the shipowners may keep trying to push them up.

Fertilizers, 25,000t, Riga - Santos, $/tonne

Time-charter-trip rates, $/day

Current Supramax abt 55,000 dwt TCT rates bss APS delivery

Current Handysize abt 30,000 dwt TCT rates bss APS delivery

Continent - EMed

9.5-10k daily

Continent - EMed

Continent - Far East

10-10.5k daily

9.5k daily

Click here to see more data on current Supra & Handy freight rates in Baltic & Continent
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Shortsea freight rates have gone down by 0.5-1/t in North Sea

The small-tonnage freight traffic is expectedly slack in the Baltic and North Seas given the holiday season in Europe.
The requests for cargo supplies are few in the region. The offer of cargoes and the number of available ships remain imbalanced
in all parts of the basin.
Export volumes of fertilizers, ferrous scrap and steel products from the Baltic Sea ports are small. The freight rates are stable
in general, though the shipowners sometimes have to make concessions to charterers amid a surplus of available vessels.
The transportation quote for 3-4,000 t of flat products from St. Petersburg to the ARA ports has stayed at 16/t, according to our
estimates. It still costs 20/t to have 3-5,000 t of fertilizers carried from Klaipeda to eastern Ireland and 14-15/t to the ARA ports.
Shipments of main cargoes from the North Sea ports are sporadic. Most freight rates have sagged by 0.5-1/t amid a shortage
of cargo offers. The transportation of 2-3,000 t of flat products from the east of the UK to northern Spain costs about 16/t. A deal
for the supply of 2,500 t of feed grain (sf 65`) from northern France to the south of the UK has been signed at 10/t. A 4-5,000 t lot of
grain is exported from Rotterdam to northern Spain at 15/t. Aggregates are regularly offered for transportation from Norway, but
the shipping fees for this cargo are traditionally low. Carrying 4-5,000 t of aggregates from Stavanger to Poland is quoted at about 6/t.
The owners of small dwt fleet still believe that the growing exports of grain from the ports of the region will strengthen their
positions in the market. However, the offer of new crop grain remains weak so far. So, the situation seems to remain unchanged in
the small-tonnage shipping segment of the Baltic and North Seas in the near future.

Flat steel products, 2-3,000t, UK East Coast - ARA ports, /tonne

Steel, 3,000t, St. Petersburg - ECUK, /tonne

Average round voyage TCE (given backhaul leg in ballast), $/day

Route

Current TCE, $/day

w-o-w

Gulf of Finland - ARAG RV,

coaster 3,000 DWCC

900

+50

Lower Baltic - ARAG RV,

coaster 3,000 DWCC

1290

+65

Click here to see more data on current shortsea freight rates in Baltic and North Seas

Norilsk Nickel develops transshipment terminal in Murmansk

Norilsk Nickel Mining and Metallurgical Company has commissioned an indoor warehouse on the territory of its transport
division in Murmansk. A new 5,000 sq m building is capable of storage up to 8,000 t of companys finished products (packaged
nickel and copper).
In the near future, the company intends to start reconstruction works at the berth No. 2 of a total length of 283 m. The project
includes modernization of wing wall and decking, installation of fenders and navigation equipment, construction of crane and
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railway tracks, as well as dredging with excavation of 156,000 cu m of earth. Commissioning of the hydraulic structure is scheduled
for September 2016. The annual handling capacity of the terminal is projected to reach 1.5 million t of cargoes.
Norilsk Nickel put into service its first berth 160 m long and 10.3 m deep in 2014. At present, the terminal is capable of processing
up to 800,000 t of cargoes per year.

Rapeseed supplies from France to UK about to start

According to ISMs sources, shipments of rapeseed from France to the UK are expected to get brisker in the near future. It should
be noted that no supplies have been made over the past six months. Earlier, rapeseed was transported to Turkey, Israel and Portugal.
At present, 24,100 t of rapeseed are to be shipped in eight shipload lots. It will most likely be the grain of a new crop, as
the harvesting started in June.
Carrying a 2,5-3,000 t lot of rapeseed (sf 55`) from the northern French ports to the south coast of the UK is now quoted by
brokers at 8-9/t.

France to build 8 billion Seine-Nord Europe Canal

According to ihsmaritime360.com, French waterways authority Voies Navigable de France (VNF) has signed a 12-year contract
with Royal Haskoning DHV and Setec Group for the construction of a navigable canal Seine-Nord Europe.
The construction of the canal will start in 2017 and is scheduled to be completed in 2025. It will be 107 km long, 54 m wide and
4.5 m deep. Six locks and three bridges are to be constructed within the project. The total volume of excavation works will amount
to 55 million cubic meters. The project budget is estimated at 8 billion.
The canal will connect the basins of Scheldt and Seine rivers. Thus, it will be possible to use the waterway to get from Paris
to Antwerp and Rotterdam, while Belgian and Dutch ports will have the access to the inland waterways of France. The canal is
designed for vessels of up to 4,400 dwt.
Last year, the European Union mentioned the Seine-Nord Europe Canal as one of the five major projects in the development of
the trans-European network of multimodal corridors TEN-T.

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USG / USEC / NCSA / ECSA / WAFR

Freight and TCT rates for Supra and Handy shipments ex USG
and ECSA on the rise
The situation remains favorable for the owners of Supramax/Ultramax fleet in the USG & USEC. There are the requests for petcoke
transportation from the US Gulf ports to the Mediterranean basin, the Far East and the east coast of Central America, as well as those
for grain shipments to China, the Mediterranean Sea, the west coast of Central and South America and Venezuela. Colombian coal
is offered for supplies to Chile and the west coast of Central America.
The shippers interest in cargo supplies by Supramax and Ultramax carriers is strong due to rather high quotes for chartering
the Panamax fleet. The costs of cargo transportation from the regional ports have grown further. The Supramax time-charter bss dely
USG redel Spore-Japan is quoted by brokers at $16-16.5 k daily on average. According to our sources, the time-charter deal for a 52,000
dwt vessel is negotiated at $15.5k daily on the same basis. This week, the prompt time-charter contract for a Supramax ship bss dely
USG redel Spore-Japan has been concluded at $16.35k daily. An Ultramax vessel has been chartered for prompt shipment at $18k daily
on the same basis. A Supramax ship available in one of the USEC ports has been reportedly chartered at $10.75k daily presumably for
petcoke transportation bss dely USG redel EMed. The spot time-charter rate for such a vessel bss dely USG redel WCCA amounts to
$16.75k daily. The time-charter contract for an Ultramax carrier bss dely NCSA redel ECSA has been concluded at $15.75k daily, that bss
dely NCSA redel USEC at $16k daily. A Handysize ship has been chartered at $10k daily to carry petcoke bss dely USG redel EMed.
The situation keeps improving in the Supramax segment of the ECSA. Agricultural products are offered for supplies from the ports
of the region to India, the Persian Gulf, the Mediterranean countries, as well as to the west coast of South America; shipments of
the products to the Far East have slowed down compared to the last week. The costs of cargo transportation keep rising in this part
of the basin due to the continuing shortage of available vessels in the spot/prompt markets. The increasing number of deals for
the supply of South American grain to the Far East and on transatlantic routes is signed on the DOP basis. This week, an Ultramax ship
has been chartered at $12.5k daily bss dely SAfr via ECSA redel Spore-Japan. The time-charter contract for a Supramax vessel bss dely
ECSA redel India has been concluded at $12k daily + $225k bb. A similar vessel has been fixed at $10.5k daily bss dely Harcourt via ECSA
redel WAfr. The time-charter deal for a Supramax carrier bss dely Gibraltar via ECSA redel Skaw-Passero has been signed at $10.5k daily.
The Handysize traffic volume has increased this week. Our sources report the time-charter contract for a 28,000 dwt vessel to
have been concluded at $10.5k daily bss dely ECSA redel Japan (the ship is now moving in ballast from Douala). A 34,000 dwt vessel
has been chartered at $13.5k daily bss dely ECSA redel SEAsia. Chartering a Handysize carrier bss dely ECSA redel Continent costs
$11.75k daily. The time-charter deal for a 30,000 dwt ship bss dely ECSA redel EMed has been signed at $11.75k daily. The timecharter contract for a Handysize vessel bss dely ECSA redel WCCA has been concluded at $5.9k daily, that bss dely ECSA redel
WCSA at $12.5k daily. A Handymax ship has been chartered at $8.750k daily bss dely WAfr via ECSA redel Continent.
In mid-July, the shipowners may succeed in raising the freight and TCT quotes further in the northern part of the Atlantic Ocean if
the demand for Supramax/Ultramax fleet remains strong. The rates may grow in the southern part of the basin in case of continuing
shortage of available ships.

Soybean (sf 50`), 45-50,000t, USG - Rotterdam, $/tonne

Soybean meals (sf 54), 25,000t, Paranagua - Riga, $/tonne

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Time-charter-trip rates, $/day

Current Supramax abt 55,000 dwt TCT rates bss APS delivery
USG - Continent

13k daily

USG - Med

13-14k daily

USG - Far East

16k daily

ECSA - Continent

14k daily

ECSA - Med

15k daily

ECSA - Far East

11.5-12k daily +150-200k bb

Current Handysize abt 30,000 dwt TCT rates bss APS delivery
USG - Continent

8-9k daily

USG - Med

9k daily

ECSA - Continent

9-10k daily

ECSA - Med

10k daily

Click here to see more data on current Supra & Handy freight rates in USG & ECSA

Atlantic Panamax market keeps improving

Our sources report a growing number of new requests for cargo transportation ex ECSA with July 16-31 - early August laycan
dates. The total volume of cargo offer should cover the overall tonnage of the vessels heading in ballast from Southeast Asia and
the Indian Ocean to the ECSA with ETA in July, the major market players say. In these circumstances, the shipowners have managed
to lift the transportation charges in the region. Thus, a Panamax vessel has been chartered at $12.75k daily + $285k bb bss dely
ECSA redel Spore-Japan with July 29 - August 4 laycan dates, that is higher compared to the level of last week. The time-charter deal
for a Kamsarmax ship bss dely ECSA redel Spore-Japan has been signed at $13.25k daily + $325k bb with July 25-30 laycan dates.
Another time-charter contract for a similar vessel has been concluded at $13k daily + $300k bb on the same basis with July 26 August 2 laycan dates. On the voyage-basis, carrying a Panamax-lot of grain from Brazil to China in July is quoted by brokers at
$24-25/t. The same quotes are charged for shipments at later dates.
Only few deals are signed bss DOP dely India/SEasia, dely passing COGH and DOP dely Continent/Med given a large number
of ballasters, arrived to the region. The Panamax time-charter bss dely India via ECSA redel Spore-Japan is estimated by brokers at
$7-8k daily, that bss dely Skaw-Passero via ECSA redel Spore-Japan at $13-14k daily. According to our sources, a Panamax ship
heading in ballast from the east coast of India has been chartered at $8.75k daily + $295k bb bss dely passing COGH via ECSA redel
Spore-Japan. The time-charter deal for a similar vessel has been signed at $9k daily + $80k bb on the same basis. The time-charter
contract for a Kamsarmax ship dely passing COGH via ECSA redel Spore-Japan has been concluded at $9.5k daily + $350k bb with
July 11-14 laycan dates. Spot time-charter deal for a Panamax carrier bss dely S. China via ECSA redel Spore-Japan has been fixed at
$5k daily. A similar vessel has been chartered for spot shipment bss dely WCI via ECSA redel Spore-Japan at $7.9k daily. Chartering
a Kamsarmax vessel bss dely ECI via ECSA redel Spore-Japan is negotiated at $9-9.2k daily. The time-charter contract for a PostPanamax carrier bss dely ECSA redel Skaw-Passero has been concluded at $11k daily + $165k bb with July 15-20 laycan dates, that
for a Kamsarmax ship at $12.500k daily + $250k bb with July 19-21 laycan dates. A Panamax vessel has been chartered at $10k
daily bss dely Skaw-Passero via ECSA redel Skaw-Passero for July 11-16 laycan dates.
The shipowners succeed in raising the freight quotes in the USG & USEC amid a continuing shortage of vessels available for
prompt dates. The increase in freight rates is also supported by the growing number of new requests for cargo transportation from
the U.S. ports with July 16-31 laycan dates. This week, the charterers offer $10-10.3k daily for TARV, while the shipowners insist on
$11.500-12k daily. According to our sources, a deal for such a shipment has been signed at $11-11.2k daily. A Panamax carrier has
been chartered at $10.25k daily + $125k bb bss dely USG redel Skaw-Passero. The time-charter contract for a Kamsarmax vessel
bss dely USEC redel Brazil has been concluded at $14.95k daily with July 20-29 laycan dates. A Panamax ship has been chartered
at $13.5k daily bss dely Gibraltar via USG redel Spore-Japan for July 1-10 laycan dates, but according to other sources, the rate
amounts to $12.9k daily. On the voyage-basis, carrying a Panamax-lot of grain from the Gulf of Mexico ports to China is quoted by
brokers at $33/t. The transportation of 70,000 t of coal from the USEC to Rotterdam costs $9.5/t on average. A similar cargo lot is
exported from the US Gulf to the ARA ports at about $11.5/t.
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The volume of Panamax cargo transportation from the EU ports remains limited. Only shipments of grain have become slightly
brisker. A shortage of available vessels both in the Baltic and Black Seas allows the shipowners to lift the freight level. It is worth noting
that even a plunge in prices for gas oil and IFO last week could not hold the freight rates from growing. So, the transportation of
65,000 t of grain from Ukraine to northern China costs $26/t on average. A 70,000 t lot of coal is exported from Murmansk to the ARA
ports at $6.5/t. A Panamax vessel has been fixed at $11.25 daily bss dely ARA prompt trip via Murmansk&EMed redel Gibraltar.
In the USG & USEC, there are the requests for coal transportation from Bolivar to Rotterdam, as well as those for iron ore shipments
from Canada to China with late July laycan dates. According to our sources, a deal for the supply of 170,000 t of ferrous raw materials
from Sept-Iles to Qingdao has been signed at $15/t with July 20-29 laycan dates. The transportation of 130,000 t of the cargo from
Port-Cartier to Hamburg has been agreed at $6.35/t with July 14-23 laycan dates. A 120,000 t lot of coal from the USEC to Turkey has
been fixed at $9.25/t with July 22-31 laycan dates. A Capesize-lot of coal will be shipped from Colombia to the ARA ports in early
August at $6.75/t. A contract for transportation of 170,000 t of iron ore from Tubarao to Rotterdam has been concluded at $6.2/t
with August 4-18 laycan dates. The supplier has paid $6.95/t to have a similar cargo lot carried from Itaguai to Italy at the beginning
of August. The time-charter deal for a Capesize vessel bss dely Spain via ECSA redel Spain has been signed at $8.75k daily.
The owners of Panamax/Kamsarmax fleet are likely to raise the freight quotes again in the ECSA if the offer of South American
grain continues to strengthen. The rates may also go up further in the USG & USEC.

Time-charter-trip rates, $/day

Current Panamax TCT rates bss APS delivery

ECSA - Far East

12.75-13k daily +275-300k bb

USG - Far East

19k daily

Continent - Far East

13-14k daily

BlSea - SEA

12-13k daily

BlSea - USG/USEC

5k daily

Transatlantic round voyage trip

8-9k daily

Click here to see more data on current Panamax freight rates in Atlantic

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INDIAN OCEAN / PG / SEA / NOPAC

TCT rates keep tending down in Asia-Pacific amid slack cargo offer
The costs of Handysize/Handymax and Supramax cargo transportation continue to fall in the Asia-Pacific region in the first half of
July. The traffic volume of main cargoes has remained small after a last weeks decrease. Indonesian coal and Chinese steel products
are the major cargoes delivered by such fleet on the main routes.
Chartering a Supramax carrier for coal transportation bss DOP dely Spore via Indo redel ECI costs about $8.5-9k daily, redel WCI
$9-9.5k daily ($250-500 daily down compared to early July). The time-charter for a similar ship bss DOP dely Spore via Indo redel
S. China is now quoted at $6-6.5k daily, that redel Thailand at $7-7.5k daily.
The requests for transportation of nickel ore by such fleet from the Philippines to China are few in the market. It should be noted
that a new tropical storm has disrupted port operations in the north of the Philippines. The time-charter rates for a Supramax vessel
bss DOP dely Hong Kong via Philippines redel China have dropped by $500 daily on average to $6.7-6.8k daily.
The time-charter quotes for Handysize/Handymax carriers involved in shipments on the routes Australia - China/Southeast Asia
have also decreased by $500-1k daily. The time-charter deals for about 28,000 dwt vessels bss DOP dely Spore via WAus redel China
with July 1-15 laycan dates are now signed at $3.5k daily on average.
On the voyage-basis, the transportation costs of construction materials from Southeast Asia to Bangladesh have also inched
down. The charterers insist on $8.5/t for carrying 45,000 t of clinker from Hon Gai to Chittagong with late July laycan dates.
In the meantime, the time-charter rates for the vessels open in the ports of Japan, South Korea and northern China remain largely
stable. According to brokers, the rates for a Supramax vessel chartered for shipments of steel bss DOP dely CJK via N. China redel SE
Asia have stayed at $6-7k daily. The time-charter contract for about a 34-37,000 dwt Handymax ship bss APS dely S. Korea redel SE
Asia has been concluded at $7k daily. A similar vessel has been chartered bss APS dely Japan redel Spore-Japan with prompt laycan
dates at $7.75k daily.
Next week, the Handysize/Handymax and Supramax cargo flow is likely to remain slack in the Asia-Pacific region. Certain freight
and time-charter rates may go down further in the basin.

Time-charter-trip rates, $/day

Current Supramax TCT rates bss delivery Singapore
W. Australia - China

7k daily

W. Australia - India

9k daily

SE Asia - China

6.5-7k daily

Current Supramax TCT rates bss delivery CJK

NOPAC - Spore-Japan

5-6k daily

Click here to see more data on current Supramax freight rates in Asia-Pacific

Large-tonnage freight rates started to go up on some routes

in Indian Ocean
Certain quotes for large-tonnage cargo transportation have started to grow again in the Indian Ocean. This has been caused by
both the outflow of fleet to the Atlantic Ocean and an increase in coal supplies from South Africa to Europe.
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At present, the time-charter rates for Panamax fleet bss DOP dely India via RBCT redel India are voiced at $9-10k daily. According
to brokers, the transportation of 75,000 t of coal from Richards Bay to New Mangalore is charged at some $11/t, to Paradip at
$11.5/t. A Post-Panamax vessel has been chartered at $8k daily + $300k bb bss APS dely RBCT redel China for July 20-30 laycan dates.
The time-charter contract for a similar ship bss APS dely Port Elizabeth redel China has been concluded at $9.75k daily + $330k bb.
Click here to see more data on current Panamax freight rates in Indian Ocean

Chinas COFCO in talks to raise stake in grain trader Nidera

Chinas food giant COFCO is ready to increase its stake in Dutch grain trader Nidera, speeding up a deal which will help its
transformation into a global agricultural trader, Reuters reports.
The state-run company acquired 51% of Nidera in February 2014. According to sources, the negotiations are now underway for
COFCO to increase its stake by purchasing at least another 15%.
COFCO has embarked on an aggressive expansion into international grain trading, having invested $2.8 billion in 2014 via joint
ventures with Noble Group agribusiness and Nidera, after taking substantial stakes in the companies. Sources report it is now
looking to build on those steps, integrating operations of the three entities, ahead of plans to eventually list all of COFCOs, Nobles,
and Nideras agricultural assets together.
The move would include COFCO into the select ABCD stable of companies dominating global agricultural trade: Archer Daniels
Midland, Bunge, Cargill and Louis Dreyfus.

Bunkering operations in North Asia under threat of typhoons

Bunkering activities across the ports in Japan, South Korea and China (Shanghai) are expected to be disrupted over the next few
days by the approaching typhoons, hellenicshippingnews.com reports.
Typhoon Chan-hom is forecasted to head towards Shanghai, South Korea and Japans Okinawa prefecture in the next few days.
In Shanghai, a trader reported some delays at the nearby Zhoushan port due to strong winds.
According to the Japan Meteorological Agency, Typhoon Nangka is approaching Honshu island from the Pacific Ocean, which
could disrupt bunkering operations at the countrys main east coast ports.
Japanese refiner JX Nippon Oil & Energy Corp. has suspended coastal loadings at its Negishi refinery in Yokohama due to high
tide and strong winds ahead of the approach of the typhoon.
In Hong Kong, bunkering operations were suspended Thursday after typhoon Linfa made landfall in Chinas eastern Guangdong
province. The Hong Kong observatory is expected to upgrade Linfa from signal No. 3, which indicates strong winds, to No. 8,
a tropical cyclone.

Huaying starts building 300,000-tonne fuel terminal

According to ihsmaritime360.com, Huaying Petrochemical Company has started the construction of a 300,000-tonne fuel
terminal in its fuel blending and distribution centre, located in Dayawan Bay, Huizhou, Guangdong province. The project, which
started on July 8, also includes three 20,000-tonne wharf terminals.
A total of 7.6 million m of sediment will be dredged from the harbor basin and channels. Once completed, the terminal will be
able to blend different types of industrial fuel and bunker with the use of imported heavy oil, residual oil, as well as formula oil, and
produce fuel of different octane values.
A project of this kind of scale is rare in China, as construction in deep sea is easily affected by the typhoons. Anti-typhoon
protection is one of the key measures to ensure security
The project will not only help reduce transportation cost in Guangdong province, but also develop a fuel blending and distribution
centre in South China with annual production capacity of 10 million tonnes.

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Head of Freight Analytic Department, Pavel Sosnovsky

Head of Marketing and Sales Department, Irina Osmatesko
Sales:
Anna Bavbekova
a.bavbekova@metalcourier.com
tel. +38 056 3757917
Feedback:
We welcome any comments on our publication.
Please contact Pavel Sosnovsky
p.sosnovsky@metalcourier.com
Website:
www.me-freight.com

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