Cross-Med dirty freight rates continue to fall on low demand

The cost of sending 30,000 mt Handysize dirty product cargoes on voyages across the Mediterranean is continuing to fall because of a lack of demand, shipping and trading sources said Monday.

The freight rate on the Cross-Med route, basis 30,000 mt, was $9.50/mt (Worldscale 112.50) Friday, the lowest level since June 20, 2012, when the rate was $9.28/mt (w109), according to Platts data.

Sources continued to peg rates on the Cross-Med route at the same levels on Monday morning.

"The [fuel oil] market is quiet. There are not a lot of cargoes being moved," a trader said.

However, with Russian river navigation closing in the north, more product will be transported by railcar to the south of the country and exported through the Black Sea in coming weeks.

"Handysize rates on the Cross-Med and Black Sea to Med routes (basis 30,000 mt) have bottomed," a shipowner said. "I am calling the rate on the Cross-Med route within a range of w110-112.50 and on the Black Sea to Med route at w117.50."

Shipbrokers pegged rates on these routes at same levels Monday.

Typically, freight rates on Black Sea-Med routes move in tandem with Cross-Med rates.

The freight rate on the Black Sea-Med route, basis 30,000 mt, was at $15.71/mt (Worldscale 120) Friday, the lowest level since June 22, 2012, when it was at $15.38/mt.
Source: Platts