Black Sea-Med Suezmax freight rates near 10-month high on lack of positions

The Black Sea-Mediterranean Suezmax market has risen to a near 10-month high due to a severely depleted tonnage list, shipping sources said.

Freight rates on the Black Sea-Med route, basis 135,000 mt, increased Worldscale 30 to w145 on Tuesday.

This is the equivalent of $16.83/mt, the highest since $19.16/mt on January 23.

There has been debate among shipping sources as to just how high rates on the route are after one charterer put a ship on subjects at w166.5 to carry a 130,000 mt crude cargo from the Black Sea to the Mediterranean on November 2.

Some thought this was an accurate reflection of a market characterized by a serious shortage of available tonnage, while others wanted to see more than one fixture before they called the market at this level.

There was no debate over the current tightness of tonnage in the market however, with delays in the Turkish Straits and a bullish Aframax market restricting the number of options for charterers.

“The market is going crazy and it’s all driven by a tight Aframax market.

The owners are making ridiculous offers now, it’s very hard to pinpoint where the next done fixture will be,” said a shipbroker.

Sources also said that there was plenty of inquiry from charterers in the Mediterranean, although much of it was being done in private, as is often the case in a surging market.

“There’s a lot of hype in the market and there are a lot of charterers sniffing for ships in the Black Sea and Mediterranean. Anyone with an outstanding cargo will have to pay up massively,” said a shipbroker.
Source: Platts