Black Sea-Med dirty Handysize rates near two-month low as clean ships go dirty

2014-08-28

The cost of sending 30,000 mt dirty product cargoes on the Black Sea-Mediterranean route has fallen to a near two-month low, after shipowners moved clean ships to dirty trade to take advantage of higher rates in that market.

Rates on the route were assessed Tuesday down Worldscale 15 at w160, which equates to $20.19 /mt, the lowest since an identical assessment June 30.

The increase in the position list owing to shipowners converting clean tankers was the key driver of the fall in rates, sources said.

“The Med and Black Sea simply have the problem of there being too many vessels, partly because owners dirtied up some clean vessels which is killing the market for all of us,” said a shipowner.

The owner said while owners would initially reap the benefit of higher rates in the dirty market, the increase in tonnage meant there were only short term gains to be made. “There are better rates for one voyage, but the rates for the next voyage are obviously going to be terrible.”

Sources said it had been an active start to the week, but rates were declining all the same. “Activity has been quite firm with 8-10 vessels on subjects. But they are going on subs in a distressed market,” said a charterer.

Source from : Platts

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