Black Sea-Med dirty Aframax freight rates surge to near 10-month high amid delays

The cost of sending 80,000 mt crude oil cargoes from the Black Sea to the Mediterranean has reached close to a 10-month high on the back of a restricted tonnage list resulting from increased delays in the Turkish straits, shipping sources said Tuesday.

Freight rates on the Black Sea-Med route, basis 80,000 mt, rose by Worldscale 35 to w200 on Monday. This equates to $22.14/mt, the highest since a $27.68/mt assessment on January 22.

Shell was heard to have put the Aegean Legend on subjects at w200 for a CPC-Mediterranean voyage loading November 29. Shipping sources said rates on the route could now be at even higher levels after Eni put the Samraa Alkhaleej on subs at w217.5 for a Novorossiisk-Mediterranean December 1 loading run and Lukoil’s Litasco was heard to have taken the HS Tosca at w220 to carry a fuel oil cargo from the Black Sea to the Med on November 30.

Typically this time of year is characterized by delays in the Turkish straits due to colder and foggier weather. Platts assessed the delays at five days northbound and four days southbound on Monday. The effect of this is that ships get held up in the waterway and the overall number of vessels available for use is reduced.

This has proved the case this week, with charterers left with an extremely limited selection of ships to cover their cargoes in the Black Sea and Mediterranean region, leading to bullishness among shipowners.

“Some of the rise in rates is sentiment-driven but there are delays in the Turkish straits and positions are tight,” said a shipbroker.

Sources also said that two of the berths at Italy’s Trieste port were closed this week, which could further restrict the tonnage list.

“Trieste isn’t helping the charterers either. There aren’t supposed to be too many ships going there this week though so it mightn’t make a massive difference,” said another shipbroker.
Source: Platts