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July 13, 2015

International Seaborne Marketwww.me-freight.com

BLACK SEA / MED / BALTIC / CONTINENTLack of available Supra and Handy vessels in Black Sea supports a steady increase in freight and TCT rates _____ 2

Owners of sea-river ships keep insisting on higher freight quotes in Azov Sea successfully __________________ 3

Charterers still hold coaster freight rates stable in Black Sea despite shipowners aggressive efforts to push them up ___4

Ukraine to cut disbursements for vessels with transit cargoes _________________________________________ 5

ISM Commodity Index: Black Sea freight rates to stabilize in early August after slight increase in late July ______ 5

Grain shipments from Aktau terminal to be halted July 15-31 due to routine maintenance __________________ 5

Rosmorport plans dredging on the river part of Azov-Don Sea Canal ___________________________________ 5

Shipowners succeed in lifting TCT rates for Handy and Supra tonnage in Baltic & Continentdespite rather small traffic volume _______________________________________________________________ 6

Shortsea freight rates have gone down by €0.5-1/t in North Sea _______________________________________ 7

Norilsk Nickel develops transshipment terminal in Murmansk _________________________________________ 7

Rapeseed supplies from France to UK about to start _________________________________________________ 8

France to build €8 billion Seine-Nord Europe Canal __________________________________________________ 8

USG / USEC / NCSA / ECSA / WAFRFreight and TCT rates for Supra and Handy shipments ex USG and ECSA on the rise _______________________ 9

Atlantic Panamax market keeps improving _______________________________________________________ 10

INDIAN OCEAN / PG / SEA / NOPACTCT rates keep tending down in Asia-Pacific amid slack cargo offer ____________________________________ 12

Large-tonnage freight rates started to go up on some routes in Indian Ocean ___________________________ 12

China’s COFCO in talks to raise stake in grain trader Nidera __________________________________________ 13

Bunkering operations in North Asia under threat of typhoons ________________________________________ 13

Huaying starts building 300,000-tonne fuel terminal ________________________________________________ 13

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BLACK SEA / MED / BALTIC / CONTINENT

Lack of available Supra and Handy vessels in Black Sea supports a steady increase in freight and TCT rates The costs of Handysize and Supramax cargo transportation keep growing in the freight market of the Black and Mediterranean Seas this week. However, according to brokers, an increase in time-charter rates has been caused more by the shortage of available Handysize and especially Supramax ships in the basin than by the stronger offer of grain cargoes (though all market players mention the growing number of requests for grain transportation). The strong markets of South America and the US Gulf, where many bulkers have been transferred to, as well as a shortage of Panamax fleet in the Mediterranean basin, that has forced many charterers to switch to cargo supplies by smaller dwt ships, give a considerable support to local shipowners. The time-charter rates keep sliding up in the region. The owners of 30,000 dwt Handysize vessels insist on $6-7k daily for cargo transportation bss dely passing Canakkale via BlSea redel EMed, though most deals are still signed at $5-6k daily. A similar ship has been chartered at $10k daily for carrying grain bss dely BlSea redel Red Sea. The time-charter rate of $6.75k daily bss dely Croatia redel Adriatic has been announced for a Handysize vessel this week. The Handysize owners ask $5.5k daily for cargo transportation on the route the Black Sea - the Gulf of Mexico, though a similar shipment has been made at $5k daily this week. The time-charter rates for Supramax fleet bss dely passing Canakkale via BlSea redel Feast are negotiated at $10-11k daily, while the shipowners insist on at least $11k daily bss PG redelivery. Almost a 50,000 dwt Handymax vessel has been chartered at $9k daily bss dely CMed via WMed WAfr. The rates on the voyage-basis have also inched up even despite a significant drop in prices for gas oil and IFO in the regional ports. So, charterers are ready to pay $10.5-11/t for transportation of 25-30,000 t of wheat from Odessa to Alexandria. Carrying a similar lot of grain from Romania to Israel is negotiated at $10.5-10.75/t. A 15,000 t lot of the cargo is supplied from Constanta to the ARA ports at $17/t. Shipping a Handy-lot of wheat from Russia to Indonesia is estimated at $32-34/t. It costs $27/t to have 50,000 t of maize transported from Ukraine to northern China. Next week, the freight and time-charter rates may stabilize in the Black Sea region if the offer of grain of the new crop becomes stronger in the market.

Wheat, 25,000t, Constanta - Alexandria, $/tonne Urea, 25,000t, Yuzhny - Santos, $/tonne

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Time-charter-trip rates, $/day

Wheat, 3,000t, Azov - Marmara Sea ports, $/tonne Scrap, 3,000t, Rostov - Marmara Sea ports, $/tonne

BlSea & Med. Current Supramax TCT rates bss delivery passing Canakkaleintramed route 6-6.5k daily

BlSea - PG/India 10-11k daily

BlSea - SEA 9.5-10.5k daily

BlSea - UK/Continent 4-5k daily

BlSea - USG/USEC 4k daily

EMed - WAfr 8-9k daily

BlSea & Med. Current Handysize abt 30,000 dwt TCT rates bss delivery passing CanakkaleBlSea - PG/India 8-9k daily

BlSea - SEA 7-8k daily

BlSea - WMed 5-5.5k daily

BlSea - EMed 5-5.75k daily

BlSea - ECSA 4-4.5k daily

Click here to see more data on current Handy&Supra freight rates in Black Sea

Click here to see more data on current coaster freight rates in Azov Sea

Owners of sea-river ships keep insisting on higher freight quotes in Azov Sea successfully The cargo traffic has increased slightly in the Azov Sea freight market closer to July 10. Meanwhile, the number of firm offers of grain for spot shipments is small in the region, market participants say. Nevertheless, the owners of sea-river vessels keep trying to push the freight rates up. The charterers’ and shipowners’ freight ideas differ by about $4-5/t, the gap sometimes reaches $10/t for cargo supplies with forward laycan dates. The charterers are ready to pay $16-17/t for wheat transportation from Azov to the Black Sea ports of Turkey, while the shipowners insist on at least $20/t. Spot deals for the supply of a similar lot of grain from Azov to the Marmara Sea are negotiated at $20-21/t, to Mersin – at $31-32/t. The charterers voice their ideas for transportation of 3,000 t of grain from Yeisk to the Marmara Sea ports at $18/t. The shipping volume of steel scrap has declined slightly compared to the second half of June. Carrying 2,5-3,000 t of the material from Rostov to the Marmara Sea is now quoted at $23-24/t, to Izmir – at $26-27/t.

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Wheat, 5,000t, Odessa - Adriatic Sea ports, $/tonne

Average round voyage TCE (given backhaul leg in ballast), $/day

Steel, 5,000t, Oktyabrsk - Marmara Sea ports, $/tonne

Charterers still hold coaster freight rates stable in Black Sea despite shipowners aggressive efforts to push them up The shipowners have failed to raise the freight quotes in the Black Sea so far. The number of available sea-going vessels remains large, that helps charterers hold the rates at an acceptable level. However, a surge in prices for marine fuel last week allows the shipowners to get by $50-200 daily more compared to early July. Steel products, steel scrap and agricultural products remain the most popular cargoes for transportation in the basin. Shipping fees for 3,000 t of wheat from Nikolayev to the Marmara Sea have stayed at $17.5-18/t. A 6,000 t lot of steel (sf 56`) is exported from Ukraine to Morocco at $29/t. A similar lot of maize is supplied from Constanta to Libya at $22/t. Carrying 12,000 t of grain from Romania to the ARA ports is negotiated at $18-19/t. The shipowners ask $28/t for transportation of 7,000 t of maize from Bulgaria to Morocco. A contract for the supply of 3,000 t of wheat from Braila to Greece has been fixed at $21/t. The charterers are ready to pay the same fee for shipment of 3,000 t of wheat from Constanta to Sicily. A 10,000 t lot of urea from Tuapse to the Mediterranean ports of Turkey has been fixed at $15/t. It costs $24/t to have 4,000 t of fertilizers carried from the same port to the Adriatic Sea. The transportation of 11,000 t of clay from Berdyansk to Castellon is charged at $19/t. A 6,000 t lot of the material is shipped from Oktyabrsk to the Marmara Sea ports at $13.5/t. The shipowners insist on $65k and $60k bss lumpsum for steel scrap transportation by a Volga-Balt vessel to the Marmara Sea ports from Nikolayev and Odessa respectively. The freight rates may go up in the Azov-Black Sea basin next week only if grain shipments from Ukraine, Romania, Bulgaria and Russia get much brisker.

Average round voyage TCE (given backhaul leg in ballast), $/day

Route Current TCE, $/day w-o-w

BlSea - Med RV, minibulker 10,000 DWCC 2180 +130

BlSea - Marmara RV, seagoing vsl 5,000 DWCC 2030 +60

BlSea - Marmara RV, seagoing vsl 3,000 DWCC 1500 +50

Azov Sea - Marmara RV, sea-river vsl 3,000 DWCC 1230 +180

Click here to see more data on current coaster freight rates in Black Sea

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ISM BlSea Commodity Index

Ukraine to cut disbursements for vessels with transit cargoes According to Ukraine’s Ministry of Infrastructure, a 50% discount on disbursements for ships carrying transit cargoes will be in force in the Ukrainian ports for 6 months. According to the Minister, the 6-months pilot project on disbursements’ reduction has been initiated in order to increase the traffic of transit cargoes. According to ISM, a 50% reduction of port fees will allow the charterers to get lower freight rates for transportation of transit cargoes. In case of stable market situation, particularly, the steady time-charter rates in the Black Sea region, the shippers may insist on about a $1-1.5/t cut for supplies by coasters and Handysize fleet from the ports of Nikolayev and Mariupol, on a $0.75-1/t reduction for Handysize and Supramax shipments from Odessa and Ilyichevsk, and on a $1-1.25/t decrease for transportation by Supramax, Panamax and Capesize vessels from the port of Yuzhny. It should be noted that coal supplied from Nikolayev, Mariupol and Izmail, fertilizers carried from Ilyichevsk, Nikolayev and Kherson, as well as iron ore shipped from Yuzhny are now the most popular transit cargoes. For ships, entering the Ukrainian seaports for loading and/or discharge of transit cargoes, the discount of 50% from all rates of port dues besides the administration one will be applied. It should be added that, according to the draft law, the term “transit cargo” implies the cargoes being transported from the departure points to the destination points outside the territory of Ukraine.

ISM Commodity Index: Black Sea freight rates to stabilize in early August after slight increase in late July

Over the week 28, ISM BlSea Commodity Index has sagged by 1.7 points, that allows to expect the freight rates to stabilize or even to inch down in the Black Sea in early August after a slight increase in late July. Commodity Index was designed by ISM as a tool to predict the freight level in a given region for the period of 4 weeks. Black Sea Commodity Index is a weighted average of export prices for main types of dry cargoes, such as grain, steel, coal, fertilizers, raw materials.

Grain shipments from Aktau terminal to be halted July 15-31 due to routine maintenance The grain terminal in Aktau port will be closed for routine maintenance from July 15 till August 1, according to market participants. Such works are performed at the main grain terminal of the Kazakh port every year in the second half of summer ahead of a new grain season. In the past two months, shipments of grain from Aktau were rather slack (monthly volumes did not exceed 40,000 t in May and June). At present, carrying 3-5,000 t of grain from Aktau to Amirabad costs $16/t on average.

Rosmorport plans dredging on the river part of Azov-Don Sea Canal Federal state-owned company Rosmorport is going to start dredging works on the river part of the Azov-Don Sea Canal. This should provide maintenance of 4.5-4.9 m navigation depths and ensure safe navigation in the approaches to the ports of Azov and Rostov-on-Don. The works are to be completed by the end of November 2015.

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The works includes dredging at three sites of a total area of 1.56 hectares, with a total length of 2.4 km:- site No. 1 of 500 m long and 27 m wide, located in Sandy Girlie (3,180.35-3,179.85 km of the Don River);- site No. 2 of 1.25 km long and 32 m wide, located at the approach to Sandy Girlie (3,179.62-3,178.37 km of the Don River);- site No. 3 of 650 m long and 27-52 m wide, located in Uzyaksky rift (3,174.2-3,173.55 km of the Don River).

More than 85,600 cu m of sediment are projected to be dredged, out of which 11,900 cu m – from site No. 1, 53,600 cu m – from site No. 2 and 20,100 cu m – from site No. 3. Azov-Don Sea Canal is situated in the north-eastern part of Taganrog Bay of the Azov Sea. It is 39.3 km long (25.3 km is a sea part and 14 km is a river part). The Canal together with the part of the Don River from the mouth to Aksai Kovsh forms an integrated waterway for the vessels heading from the Gulf of Taganrog to the ports of Azov and Rostov-on-Don.

Shipowners succeed in lifting TCT rates for Handy and Supra tonnage in Baltic & Continent despite rather small traffic volume The Handysize cargo flow from the ports of the Baltic & Continent remains dull this week. The requests for supplies of agricultural products, fertilizers and ferrous raw materials are sporadic. At the same time, our sources report a limited number of vessels available for spot/prompt cargo shipments. The shipowners have managed to lift most freight rates by $0.25-0.5/t over the week, though there have been no particular reasons for such an increase. ISM experts quote the transportation of 25-30,000 t of fertilizers from Klaipeda to Brazil at $20-21/t. It costs $14/t to have 25,000 t of grain exported from Rouen to Algeria. A contract for the supply of a small Handy-lot of steel products from Latvia to Algeria has been concluded at $30/t, that is quite a successful deal for the shipowner. The Handysize time-charter bss APS dely Continent redel EMed is estimated at about $9.5k daily, that bss APS dely Continent redel Algeria-Morocco – at about $8.5-9k daily. The Supramax owners have managed to raise the freight quotes by $0.5/t on average despite the fact that the commodity flow has remained slack in this segment. According to our estimates, a 45,000 t lot of steel scrap may be shipped from Antwerp to the Marmara Sea ports at $13-14/t. The average time-charter rate for a Supramax vessel on this route amounts to about $9.75k daily under the APS terms, that for shipments to the Far East – to $10.25k daily. In mid-July, the costs of cargo transportation by Handysize and Supramax fleet will hardly grow further in the Baltic & Continent, though the shipowners may keep trying to push them up.

Fertilizers, 25,000t, Riga - Santos, $/tonne Time-charter-trip rates, $/day

Current Supramax abt 55,000 dwt TCT rates bss APS deliveryContinent - EMed 9.5-10k daily

Continent - Far East 10-10.5k daily

Current Handysize abt 30,000 dwt TCT rates bss APS deliveryContinent - EMed 9.5k daily

Click here to see more data on current Supra & Handy freight rates in Baltic & Continent

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7July 13, 2015

Shortsea freight rates have gone down by €0.5-1/t in North Sea The small-tonnage freight traffic is expectedly slack in the Baltic and North Seas given the holiday season in Europe. The requests for cargo supplies are few in the region. The offer of cargoes and the number of available ships remain imbalanced in all parts of the basin. Export volumes of fertilizers, ferrous scrap and steel products from the Baltic Sea ports are small. The freight rates are stable in general, though the shipowners sometimes have to make concessions to charterers amid a surplus of available vessels. The transportation quote for 3-4,000 t of flat products from St. Petersburg to the ARA ports has stayed at €16/t, according to our estimates. It still costs €20/t to have 3-5,000 t of fertilizers carried from Klaipeda to eastern Ireland and €14-15/t – to the ARA ports. Shipments of main cargoes from the North Sea ports are sporadic. Most freight rates have sagged by €0.5-1/t amid a shortage of cargo offers. The transportation of 2-3,000 t of flat products from the east of the UK to northern Spain costs about €16/t. A deal for the supply of 2,500 t of feed grain (sf 65`) from northern France to the south of the UK has been signed at Ј10/t. A 4-5,000 t lot of grain is exported from Rotterdam to northern Spain at €15/t. Aggregates are regularly offered for transportation from Norway, but the shipping fees for this cargo are traditionally low. Carrying 4-5,000 t of aggregates from Stavanger to Poland is quoted at about €6/t. The owners of small dwt fleet still believe that the growing exports of grain from the ports of the region will strengthen their positions in the market. However, the offer of new crop grain remains weak so far. So, the situation seems to remain unchanged in the small-tonnage shipping segment of the Baltic and North Seas in the near future.

Flat steel products, 2-3,000t, UK East Coast - ARA ports, €/tonne Steel, 3,000t, St. Petersburg - ECUK, €/tonne

Average round voyage TCE (given backhaul leg in ballast), $/day

Route Current TCE, $/day w-o-w

Gulf of Finland - ARAG RV, coaster 3,000 DWCC 900 +50

Lower Baltic - ARAG RV, coaster 3,000 DWCC 1290 +65

Click here to see more data on current shortsea freight rates in Baltic and North Seas

Norilsk Nickel develops transshipment terminal in Murmansk Norilsk Nickel Mining and Metallurgical Company has commissioned an indoor warehouse on the territory of its transport division in Murmansk. A new 5,000 sq m building is capable of storage up to 8,000 t of company’s finished products (packaged nickel and copper). In the near future, the company intends to start reconstruction works at the berth No. 2 of a total length of 283 m. The project includes modernization of wing wall and decking, installation of fenders and navigation equipment, construction of crane and

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8July 13, 2015

railway tracks, as well as dredging with excavation of 156,000 cu m of earth. Commissioning of the hydraulic structure is scheduled for September 2016. The annual handling capacity of the terminal is projected to reach 1.5 million t of cargoes. Norilsk Nickel put into service its first berth 160 m long and 10.3 m deep in 2014. At present, the terminal is capable of processing up to 800,000 t of cargoes per year.

Rapeseed supplies from France to UK about to start According to ISM’s sources, shipments of rapeseed from France to the UK are expected to get brisker in the near future. It should be noted that no supplies have been made over the past six months. Earlier, rapeseed was transported to Turkey, Israel and Portugal. At present, 24,100 t of rapeseed are to be shipped in eight shipload lots. It will most likely be the grain of a new crop, as the harvesting started in June. Carrying a 2,5-3,000 t lot of rapeseed (sf 55`) from the northern French ports to the south coast of the UK is now quoted by brokers at £8-9/t.

France to build €8 billion Seine-Nord Europe Canal According to ihsmaritime360.com, French waterways authority Voies Navigable de France (VNF) has signed a 12-year contract with Royal Haskoning DHV and Setec Group for the construction of a navigable canal Seine-Nord Europe. The construction of the canal will start in 2017 and is scheduled to be completed in 2025. It will be 107 km long, 54 m wide and 4.5 m deep. Six locks and three bridges are to be constructed within the project. The total volume of excavation works will amount to 55 million cubic meters. The project budget is estimated at €8 billion. The canal will connect the basins of Scheldt and Seine rivers. Thus, it will be possible to use the waterway to get from Paris to Antwerp and Rotterdam, while Belgian and Dutch ports will have the access to the inland waterways of France. The canal is designed for vessels of up to 4,400 dwt. Last year, the European Union mentioned the Seine-Nord Europe Canal as one of the five major projects in the development of the trans-European network of multimodal corridors TEN-T.

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9July 13, 2015

USG / USEC / NCSA / ECSA / WAFR

Freight and TCT rates for Supra and Handy shipments ex USG and ECSA on the rise The situation remains favorable for the owners of Supramax/Ultramax fleet in the USG & USEC. There are the requests for petcoke transportation from the US Gulf ports to the Mediterranean basin, the Far East and the east coast of Central America, as well as those for grain shipments to China, the Mediterranean Sea, the west coast of Central and South America and Venezuela. Colombian coal is offered for supplies to Chile and the west coast of Central America. The shippers’ interest in cargo supplies by Supramax and Ultramax carriers is strong due to rather high quotes for chartering the Panamax fleet. The costs of cargo transportation from the regional ports have grown further. The Supramax time-charter bss dely USG redel Spore-Japan is quoted by brokers at $16-16.5 k daily on average. According to our sources, the time-charter deal for a 52,000 dwt vessel is negotiated at $15.5k daily on the same basis. This week, the prompt time-charter contract for a Supramax ship bss dely USG redel Spore-Japan has been concluded at $16.35k daily. An Ultramax vessel has been chartered for prompt shipment at $18k daily on the same basis. A Supramax ship available in one of the USEC ports has been reportedly chartered at $10.75k daily presumably for petcoke transportation bss dely USG redel EMed. The spot time-charter rate for such a vessel bss dely USG redel WCCA amounts to $16.75k daily. The time-charter contract for an Ultramax carrier bss dely NCSA redel ECSA has been concluded at $15.75k daily, that bss dely NCSA redel USEC – at $16k daily. A Handysize ship has been chartered at $10k daily to carry petcoke bss dely USG redel EMed. The situation keeps improving in the Supramax segment of the ECSA. Agricultural products are offered for supplies from the ports of the region to India, the Persian Gulf, the Mediterranean countries, as well as to the west coast of South America; shipments of the products to the Far East have slowed down compared to the last week. The costs of cargo transportation keep rising in this part of the basin due to the continuing shortage of available vessels in the spot/prompt markets. The increasing number of deals for the supply of South American grain to the Far East and on transatlantic routes is signed on the DOP basis. This week, an Ultramax ship has been chartered at $12.5k daily bss dely SAfr via ECSA redel Spore-Japan. The time-charter contract for a Supramax vessel bss dely ECSA redel India has been concluded at $12k daily + $225k bb. A similar vessel has been fixed at $10.5k daily bss dely Harcourt via ECSA redel WAfr. The time-charter deal for a Supramax carrier bss dely Gibraltar via ECSA redel Skaw-Passero has been signed at $10.5k daily. The Handysize traffic volume has increased this week. Our sources report the time-charter contract for a 28,000 dwt vessel to have been concluded at $10.5k daily bss dely ECSA redel Japan (the ship is now moving in ballast from Douala). A 34,000 dwt vessel has been chartered at $13.5k daily bss dely ECSA redel SEAsia. Chartering a Handysize carrier bss dely ECSA redel Continent costs $11.75k daily. The time-charter deal for a 30,000 dwt ship bss dely ECSA redel EMed has been signed at $11.75k daily. The time-charter contract for a Handysize vessel bss dely ECSA redel WCCA has been concluded at $5.9k daily, that bss dely ECSA redel WCSA – at $12.5k daily. A Handymax ship has been chartered at $8.750k daily bss dely WAfr via ECSA redel Continent. In mid-July, the shipowners may succeed in raising the freight and TCT quotes further in the northern part of the Atlantic Ocean if the demand for Supramax/Ultramax fleet remains strong. The rates may grow in the southern part of the basin in case of continuing shortage of available ships.

Soybean (sf 50`), 45-50,000t, USG - Rotterdam, $/tonne Soybean meals (sf 54’), 25,000t, Paranagua - Riga, $/tonne

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Time-charter-trip rates, $/dayCurrent Supramax abt 55,000 dwt TCT rates bss APS deliveryUSG - Continent 13k daily

USG - Med 13-14k daily

USG - Far East 16k daily

ECSA - Continent 14k daily

ECSA - Med 15k daily

ECSA - Far East 11.5-12k daily +150-200k bb

Current Handysize abt 30,000 dwt TCT rates bss APS deliveryUSG - Continent 8-9k daily

USG - Med 9k daily

ECSA - Continent 9-10k daily

ECSA - Med 10k daily

Click here to see more data on current Supra & Handy freight rates in USG & ECSA

Atlantic Panamax market keeps improving Our sources report a growing number of new requests for cargo transportation ex ECSA with July 16-31 - early August laycan dates. The total volume of cargo offer should cover the overall tonnage of the vessels heading in ballast from Southeast Asia and the Indian Ocean to the ECSA with ETA in July, the major market players say. In these circumstances, the shipowners have managed to lift the transportation charges in the region. Thus, a Panamax vessel has been chartered at $12.75k daily + $285k bb bss dely ECSA redel Spore-Japan with July 29 - August 4 laycan dates, that is higher compared to the level of last week. The time-charter deal for a Kamsarmax ship bss dely ECSA redel Spore-Japan has been signed at $13.25k daily + $325k bb with July 25-30 laycan dates. Another time-charter contract for a similar vessel has been concluded at $13k daily + $300k bb on the same basis with July 26 - August 2 laycan dates. On the voyage-basis, carrying a Panamax-lot of grain from Brazil to China in July is quoted by brokers at $24-25/t. The same quotes are charged for shipments at later dates. Only few deals are signed bss DOP dely India/SEasia, dely passing COGH and DOP dely Continent/Med given a large number of ballasters, arrived to the region. The Panamax time-charter bss dely India via ECSA redel Spore-Japan is estimated by brokers at $7-8k daily, that bss dely Skaw-Passero via ECSA redel Spore-Japan – at $13-14k daily. According to our sources, a Panamax ship heading in ballast from the east coast of India has been chartered at $8.75k daily + $295k bb bss dely passing COGH via ECSA redel Spore-Japan. The time-charter deal for a similar vessel has been signed at $9k daily + $80k bb on the same basis. The time-charter contract for a Kamsarmax ship dely passing COGH via ECSA redel Spore-Japan has been concluded at $9.5k daily + $350k bb with July 11-14 laycan dates. Spot time-charter deal for a Panamax carrier bss dely S. China via ECSA redel Spore-Japan has been fixed at $5k daily. A similar vessel has been chartered for spot shipment bss dely WCI via ECSA redel Spore-Japan at $7.9k daily. Chartering a Kamsarmax vessel bss dely ECI via ECSA redel Spore-Japan is negotiated at $9-9.2k daily. The time-charter contract for a Post-Panamax carrier bss dely ECSA redel Skaw-Passero has been concluded at $11k daily + $165k bb with July 15-20 laycan dates, that for a Kamsarmax ship – at $12.500k daily + $250k bb with July 19-21 laycan dates. A Panamax vessel has been chartered at $10k daily bss dely Skaw-Passero via ECSA redel Skaw-Passero for July 11-16 laycan dates. The shipowners succeed in raising the freight quotes in the USG & USEC amid a continuing shortage of vessels available for prompt dates. The increase in freight rates is also supported by the growing number of new requests for cargo transportation from the U.S. ports with July 16-31 laycan dates. This week, the charterers offer $10-10.3k daily for TARV, while the shipowners insist on $11.500-12k daily. According to our sources, a deal for such a shipment has been signed at $11-11.2k daily. A Panamax carrier has been chartered at $10.25k daily + $125k bb bss dely USG redel Skaw-Passero. The time-charter contract for a Kamsarmax vessel bss dely USEC redel Brazil has been concluded at $14.95k daily with July 20-29 laycan dates. A Panamax ship has been chartered at $13.5k daily bss dely Gibraltar via USG redel Spore-Japan for July 1-10 laycan dates, but according to other sources, the rate amounts to $12.9k daily. On the voyage-basis, carrying a Panamax-lot of grain from the Gulf of Mexico ports to China is quoted by brokers at $33/t. The transportation of 70,000 t of coal from the USEC to Rotterdam costs $9.5/t on average. A similar cargo lot is exported from the US Gulf to the ARA ports at about $11.5/t.

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Current Panamax TCT rates bss APS deliveryECSA - Far East 12.75-13k daily +275-300k bb

USG - Far East 19k daily

Continent - Far East 13-14k daily

BlSea - SEA 12-13k daily

BlSea - USG/USEC 5k daily

Transatlantic round voyage trip 8-9k daily

Click here to see more data on current Panamax freight rates in Atlantic

The volume of Panamax cargo transportation from the EU ports remains limited. Only shipments of grain have become slightly brisker. A shortage of available vessels both in the Baltic and Black Seas allows the shipowners to lift the freight level. It is worth noting that even a plunge in prices for gas oil and IFO last week could not hold the freight rates from growing. So, the transportation of 65,000 t of grain from Ukraine to northern China costs $26/t on average. A 70,000 t lot of coal is exported from Murmansk to the ARA ports at $6.5/t. A Panamax vessel has been fixed at $11.25 daily bss dely ARA prompt trip via Murmansk&EMed redel Gibraltar. In the USG & USEC, there are the requests for coal transportation from Bolivar to Rotterdam, as well as those for iron ore shipments from Canada to China with late July laycan dates. According to our sources, a deal for the supply of 170,000 t of ferrous raw materials from Sept-Iles to Qingdao has been signed at $15/t with July 20-29 laycan dates. The transportation of 130,000 t of the cargo from Port-Cartier to Hamburg has been agreed at $6.35/t with July 14-23 laycan dates. A 120,000 t lot of coal from the USEC to Turkey has been fixed at $9.25/t with July 22-31 laycan dates. A Capesize-lot of coal will be shipped from Colombia to the ARA ports in early August at $6.75/t. A contract for transportation of 170,000 t of iron ore from Tubarao to Rotterdam has been concluded at $6.2/t with August 4-18 laycan dates. The supplier has paid $6.95/t to have a similar cargo lot carried from Itaguai to Italy at the beginning of August. The time-charter deal for a Capesize vessel bss dely Spain via ECSA redel Spain has been signed at $8.75k daily. The owners of Panamax/Kamsarmax fleet are likely to raise the freight quotes again in the ECSA if the offer of South American grain continues to strengthen. The rates may also go up further in the USG & USEC.

Time-charter-trip rates, $/day

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12July 13, 2015

INDIAN OCEAN / PG / SEA / NOPAC

TCT rates keep tending down in Asia-Pacific amid slack cargo offer The costs of Handysize/Handymax and Supramax cargo transportation continue to fall in the Asia-Pacific region in the first half of July. The traffic volume of main cargoes has remained small after a last week’s decrease. Indonesian coal and Chinese steel products are the major cargoes delivered by such fleet on the main routes. Chartering a Supramax carrier for coal transportation bss DOP dely Spore via Indo redel ECI costs about $8.5-9k daily, redel WCI – $9-9.5k daily ($250-500 daily down compared to early July). The time-charter for a similar ship bss DOP dely Spore via Indo redel S. China is now quoted at $6-6.5k daily, that redel Thailand – at $7-7.5k daily. The requests for transportation of nickel ore by such fleet from the Philippines to China are few in the market. It should be noted that a new tropical storm has disrupted port operations in the north of the Philippines. The time-charter rates for a Supramax vessel bss DOP dely Hong Kong via Philippines redel China have dropped by $500 daily on average to $6.7-6.8k daily. The time-charter quotes for Handysize/Handymax carriers involved in shipments on the routes Australia - China/Southeast Asia have also decreased by $500-1k daily. The time-charter deals for about 28,000 dwt vessels bss DOP dely Spore via WAus redel China with July 1-15 laycan dates are now signed at $3.5k daily on average. On the voyage-basis, the transportation costs of construction materials from Southeast Asia to Bangladesh have also inched down. The charterers insist on $8.5/t for carrying 45,000 t of clinker from Hon Gai to Chittagong with late July laycan dates. In the meantime, the time-charter rates for the vessels open in the ports of Japan, South Korea and northern China remain largely stable. According to brokers, the rates for a Supramax vessel chartered for shipments of steel bss DOP dely CJK via N. China redel SE Asia have stayed at $6-7k daily. The time-charter contract for about a 34-37,000 dwt Handymax ship bss APS dely S. Korea redel SE Asia has been concluded at $7k daily. A similar vessel has been chartered bss APS dely Japan redel Spore-Japan with prompt laycan dates at $7.75k daily. Next week, the Handysize/Handymax and Supramax cargo flow is likely to remain slack in the Asia-Pacific region. Certain freight and time-charter rates may go down further in the basin.

Time-charter-trip rates, $/day

Current Supramax TCT rates bss delivery SingaporeW. Australia - China 7k daily

W. Australia - India 9k daily

SE Asia - China 6.5-7k daily

Current Supramax TCT rates bss delivery CJKNOPAC - Spore-Japan 5-6k daily

Click here to see more data on current Supramax freight rates in Asia-Pacific

Large-tonnage freight rates started to go up on some routes in Indian Ocean Certain quotes for large-tonnage cargo transportation have started to grow again in the Indian Ocean. This has been caused by both the outflow of fleet to the Atlantic Ocean and an increase in coal supplies from South Africa to Europe.

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13July 13, 2015

At present, the time-charter rates for Panamax fleet bss DOP dely India via RBCT redel India are voiced at $9-10k daily. According to brokers, the transportation of 75,000 t of coal from Richards Bay to New Mangalore is charged at some $11/t, to Paradip – at $11.5/t. A Post-Panamax vessel has been chartered at $8k daily + $300k bb bss APS dely RBCT redel China for July 20-30 laycan dates. The time-charter contract for a similar ship bss APS dely Port Elizabeth redel China has been concluded at $9.75k daily + $330k bb.

China’s COFCO in talks to raise stake in grain trader Nidera China’s food giant COFCO is ready to increase its stake in Dutch grain trader Nidera, speeding up a deal which will help its transformation into a global agricultural trader, Reuters reports. The state-run company acquired 51% of Nidera in February 2014. According to sources, the negotiations are now underway for COFCO to increase its stake by purchasing at least another 15%. COFCO has embarked on an aggressive expansion into international grain trading, having invested $2.8 billion in 2014 via joint ventures with Noble Group agribusiness and Nidera, after taking substantial stakes in the companies. Sources report it is now looking to build on those steps, integrating operations of the three entities, ahead of plans to eventually list all of COFCO’s, Noble’s, and Nidera’s agricultural assets together. The move would include COFCO into the select «ABCD» stable of companies dominating global agricultural trade: Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus.

Bunkering operations in North Asia under threat of typhoons Bunkering activities across the ports in Japan, South Korea and China (Shanghai) are expected to be disrupted over the next few days by the approaching typhoons, hellenicshippingnews.com reports. Typhoon Chan-hom is forecasted to head towards Shanghai, South Korea and Japan’s Okinawa prefecture in the next few days. In Shanghai, a trader reported some delays at the nearby Zhoushan port due to strong winds. According to the Japan Meteorological Agency, Typhoon Nangka is approaching Honshu island from the Pacific Ocean, which could disrupt bunkering operations at the country’s main east coast ports. Japanese refiner JX Nippon Oil & Energy Corp. has suspended “coastal loadings” at its Negishi refinery in Yokohama due to high tide and strong winds ahead of the approach of the typhoon. In Hong Kong, bunkering operations were suspended Thursday after typhoon Linfa made landfall in China’s eastern Guangdong province. The Hong Kong observatory is expected to upgrade Linfa from signal No. 3, which indicates strong winds, to No. 8, a tropical cyclone.

Huaying starts building 300,000-tonne fuel terminal According to ihsmaritime360.com, Huaying Petrochemical Company has started the construction of a 300,000-tonne fuel terminal in its fuel blending and distribution centre, located in Dayawan Bay, Huizhou, Guangdong province. The project, which started on July 8, also includes three 20,000-tonne wharf terminals. A total of 7.6 million m³ of sediment will be dredged from the harbor basin and channels. Once completed, the terminal will be able to blend different types of industrial fuel and bunker with the use of imported heavy oil, residual oil, as well as formula oil, and produce fuel of different octane values. A project of this kind of scale is rare in China, as construction in deep sea is easily affected by the typhoons. Anti-typhoon protection is one of the key measures to ensure security The project will not only help reduce transportation cost in Guangdong province, but also develop a fuel blending and distribution centre in South China with annual production capacity of 10 million tonnes.

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Head of Freight Analytic Department, Pavel Sosnovsky

Head of Marketing and Sales Department, Irina Osmatesko

Sales:Anna Bavbekovaa.bavbekova@metalcourier.comtel. +38 056 3757917

Feedback:We welcome any comments on our publication.Please contact Pavel Sosnovsky p.sosnovsky@metalcourier.com

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