Freight rates for Handysize vessels — the most widely used class to carry fuel oil and feedstocks in the European region — have rallied to fresh 22-month highs in the Black Sea as tonnage has tightened significantly on the back of busy loading schedules and bad weather causing delays, sources said Wednesday.
The Black Sea-Mediterranean route for 30,000 mt cargoes was assessed Tuesday at Worldscale 240, equivalent to $21.82/mt, the highest level since December 30, 2016, S&P Global Platts data showed.
“This is seasonal,” a trader said Wednesday. “Also [the fuel oil] flat price is up, so it means bunker costs are up.”
The Handytankers Glory was heard on subjects for a 30,000 mt fuel oil cargo loading in the Black Sea on November 2 for a voyage to the Med at w240, as was the Seavalour for a similar cargo with an October 30 laycan. Meanwhile Mediterranean fuel oil buyers continue to emphasize the tighter market as the region lacks resupply options from an uneconomical arbitrage from the North as the HSFO Med/North remains negative.
“The market is freaking out… there is no resupply for the Med,” a fuel oil trader said.