Compared to the last report, the Baltic Handysize Index (BHSI) increased from about $12500 per day to $13500 per day as a benchmark for a 38000DWT. The real rebound can be highlighted in last week’s trend which showed an increase in all seven reference routes, with particular attention to route USG/NCSA to CONT/MED. However, it is necessary to underline that this index can be late and therefore does not always reflect the market correctly, in fact regarding Mediterranean routes the trend of the last week shows a strong recovery which is not still reported at all by the index.
Recently, the Black Sea and Mediterranean market has finally shown rebound signs regarding the handysize segment. After weeks of oversupply, the reference area is experiencing a moment of rebalancing characterized by a stable transport demand and a reduction in the available tonnage, this phenomenon has been translated into an increment of the freight and so of time charter equivalent for all reference routes.
The Russia/Ukraine market, on the other hand, is struggling to recover despite the reduced tonnage due to a contraction in exports, especially with regard to Russia. Consequently, it has been reduced and is being reduced so the premium for these routes which is more and more difficult can compete with ships insured for the war risk. On the contrary, the Suez route is reluctant to swing downwards and has returned to growth again; hostilities in the Gulf of Aden support market levels resulting in a premium for transit risk which is not declining still.
Growth was expected in the first half of July, but a sudden rebalancing anticipated expectations for a few weeks; could it just be a blunder or a new market balance for the coming weeks? Surely, as highlighted, the tonnage list has been reduced, but without an increment in the transport demand probably the market in Mediterranean/Black Sea will face again a contraction in the short period.
#handysize #shipping #drybulk #SlothSea
(Image Source: https://www.world-grain.com/articles/17021-grain-shipping-trade-navigates-turbulent-waters)
