The Sea of Azov has not reopened. For record-keeping purposes, theoretical freight levels continued to be assessed at USD 24/ton for 3,000-ton wheat cargoes on the Azov–Marmara route, USD 26/ton on the Rostov–Marmara route, and USD 47/ton on the Rostov–Mersin route. As we have repeated every week, it is well understood that these freight levels would rise very rapidly within a matter of days if the Sea of Azov were to reopen.

Freight rates for cargoes moving between Ukraine, the Black Sea and the Mediterranean again increased alongside the risks. This week, 5,000–6,000-ton wheat cargoes from Izmail to Marmara and Izmir were respectively quoted at USD 50/ton and USD 55/ton. For similar cargoes from Izmail to Constanta, freight increased to as high as USD 37/ton, compared with USD 35/ton quoted last week. As we remind readers every week, extra war risk premiums remain at record levels against these freight rates, and higher freight does not necessarily translate into higher daily earnings.

Freight rates on the Novorossiysk–Marmara route also increased again this week. Freight for 5,000-ton wheat cargoes was being quoted at around USD 45/ton, compared with approximately USD 40/ton last week. On the Novorossiysk–Ashdod route, a high freight level of around USD 110/ton was seen for 5,000-ton wheat cargoes due to the risks on both sides. For Egypt, freight was reportedly quoted at USD 55/ton.

In the larger vessel segments, the Baltic Dry Index (BDI) staged a sharp recovery this week, climbing from last week’s 2,791 points to 3,186 points. Once again, the Capesize segment accounted for the largest share of the gains. The Baltic Capesize Index moved sharply higher, while the Baltic Panamax Index fully recovered its August losses. The Baltic Supramax and Baltic Handysize indices also posted modest gains.

The Baltic Supramax Index (BSI) continued to strengthen this week, rising from 1,637 points to 1,647 points. Average daily time charter equivalent (TCE) earnings consequently increased from USD 20,698/day to USD 20,819/day.

In the Supramax segment, the Atlantic lost some strength while Asia improved. Average daily earnings on the Black Sea–Far East route continued to decline, falling from USD 24,468/day to USD 23,371/day. On the U.S. Gulf–Far East route, average daily earnings failed to hold last week’s USD 30,469/day level and eased to USD 30,356/day. Far East averages, meanwhile, increased from USD 18,290/day to USD 18,849/day.

The Baltic Handysize Index (BHSI) also continued its upward trend, recovering from 871 points to 881 points. Average daily time charter equivalent earnings increased from USD 15,670/day to USD 15,855/day.

In the Handysize segment, daily earnings on the Black Sea–Mediterranean and Black Sea–Continent routes edged higher from last week, with earnings on both routes increasing from USD 11,000/day to USD 12,000/day. Earnings on the Black Sea–Far East route remained broadly stable at around USD 17,000/day, in line with last week’s level.

On the South America–Continent route, average daily earnings increased again, climbing from USD 21,056/day to USD 22,494/day. Far East averages also maintained their steady upward trend, rising from USD 17,444/day to USD 17,677/day.

Turning to the sale and purchase market. Activity remained subdued again this week, partly due to the August holiday period.

The only Ultramax sale reported was the 64,000 DWT Chinese-built “Amaryllis” (2013), with a reported sale price of USD 24.3 million. For comparison, the similarly sized 64,000 DWT Chinese-built “Union Lotus” (2015) was sold for USD 26 million in recent weeks.

In the Supramax segment, the 58,000 DWT Chinese-built “African Wagtail” (2013) was sold for USD 20 million. The relatively high price was attributed to the vessel being built at DACKS.

In the Handysize segment, the 35,000 DWT Korean-built “Arklow Spirit,” which had been on the market for an extended period, changed hands for USD 16.6 million.

No coaster sale was reported.

We wish our readers a pleasant week ahead.