Cross-Med handysize freight rate hits seven-month low on weak demand

The cross-Mediterranean dirty freight rate for 30,000 mt cargoes fell to its lowest in over seven months, as weak demand for handysize vessels in the region left more than enough tonnage available, shipping sources said.
The cross-Med handysize freight rate was assessed by Platts at $12.24/mt (Worldscale 145). It was last lower on September 28, 2012, at $11.70/mt.
Similarly the Black Sea-Med handysize rate was assessed at a seven-month low of $20.29/mt. Freight for the route was last lower on September 28, 2012, at $18.45/mt.
Activity in the handysize category has been subdued for several months, said shipping sources. Last week, more prompt vessels were available than were on subjects.
Several fuel oil fixtures from Italian major Eni at lower rates highlighted the trend. Shipbrokers said Eni fixed three handysize vessels loading 30,000 mt cargoes through Friday.
"Eni fixed the Bixbite from Taranto, Italy cross-Med with options to the UK Continent for May 18-20 loading at w145-w150," a shipbroker said.
A second vessel was fixed by Eni loading from Milazzo, Italy to the Med at w145, with shipping sources reporting loading dates May 18-22. The name of the vessel could not be determined.
Eni put on subjects a third vessel on ship-to-ship transfer from Kerch, Ukraine, in the Black Sea region to the Med, loading May 24 at w156.25. Fuel oil traders at Eni were unavailable for comment.
"Eni is fixing a lot of handysize vessels for prompt loading dates," said another shipbroker.
The Italian major was also heard fixing a vessel to load heated crude from La Skhirra in Tunisia into the Med on May 23 at w145.
Source: Platts