The Sea of Azov remains closed. We continue to track the theoretical freight levels for record-keeping purposes. Freight levels for 3,000-ton wheat cargoes on the Azov–Marmara route continued to be assessed at USD 24/ton this week, while Rostov–Marmara remained at USD 26/ton and the Rostov–Mersin route at USD 47/ton. One does not need to be an expert to predict that, should the Sea of Azov reopen, these freight levels would rise very rapidly within a matter of days.

Freight rates for cargoes moving from Ukraine into the Black Sea remained broadly unchanged from last week. A 4,000-ton high-stowage grain residue (WBG) cargo from Izmail to Izmir was offered at USD 51/ton. A 6,500-ton corn cargo from Izmail to Egypt was quoted at USD 61/ton. Meanwhile, the quoted freight for a 6,500-ton wheat cargo from Izmail to Constanta was USD 35/ton. As we have noted every week, it is worth remembering that extra war risk premiums remain at record levels against these freight rates, and higher freight does not necessarily translate into higher daily earnings.

There have also been significant increases in freight rates on the Novorossiysk–Marmara route due to similar security risks. Freight for 5,000-ton wheat cargoes on this route is currently being quoted at USD 40/ton. At the beginning of August, these freight levels did not exceed around USD 25/ton.

In the larger vessel segments, the Baltic Dry Index (BDI) was again under pressure this week. The index declined from last week’s 2,863 points to 2,791 points. The Baltic Capesize Index remained broadly flat, while the Baltic Panamax Index moved lower. The Baltic Supramax Index edged higher again, while the Baltic Handysize Index turned upward from broadly stable levels.

The Baltic Supramax Index (BSI) posted a modest increase this week, rising from 1,622 points to 1,637 points. Average daily time charter equivalent (TCE) earnings increased from USD 20,508/day to USD 20,698/day.

In the Supramax segment, the Atlantic lost some strength while Asia improved. Average daily earnings on the Black Sea–Far East route declined again this week, falling from USD 24,767/day to USD 24,468/day. On the U.S. Gulf–Far East route, average daily earnings corrected slightly from last week’s USD 30,518/day to USD 30,469/day. Far East averages increased for a second consecutive week, rising from USD 17,906/day to USD 18,290/day.

The Baltic Handysize Index (BHSI) edged higher, recovering from 866 points to 871 points. Average daily time charter equivalent earnings also posted a modest increase, rising from USD 15,579/day to USD 15,670/day.

In the Handysize segment, daily earnings on the Black Sea–Mediterranean and Black Sea–Continent routes remained unchanged from last week. Earnings on both routes held at USD 11,000/day. Earnings on the Black Sea–Far East route also remained stable at around USD 17,000/day, the level reached last week.

On the South America–Continent route, average daily earnings increased from USD 20,606/day to USD 21,056/day. Far East averages also continued to strengthen steadily this week, rising from USD 17,267/day to USD 17,444/day.

Turning to the sale and purchase market:

In the Ultramax segment, the 61,000 DWT Chinese-built “Gramos” (2019) changed hands for USD 34.5 million. Last week, the 64,000 DWT Chinese-built “Union Lotus” (2015) was sold for USD 26 million. The price levels are comparable when taking the five-year age difference into account.

In the Supramax market, the Japanese-built “Sidra” (2012) was sold for USD 19.2 million, while the Chinese-built “Global Oriole” (2012) changed hands for USD 19.5 million. If you are wondering why two vessels of the same age, one Chinese-built and one Japanese-built, achieved similar prices, “Global Oriole” was built at NACKS and is fitted with an exhaust gas cleaning system (scrubber). The Chinese-built “Lila Mundra” (2009) was reportedly sold at around USD 12.5 million.

In the Handysize segment, the only reported transaction was the 36,000 DWT Chinese-built “Amira Diana” (2010), which changed hands for USD 11.5 million.

No coaster sale was reported.

We wish our readers a pleasant week ahead.