During week 3, the freight rates for shipping wheat and coal in the Black Sea went down.
According to Glogos Project, freight rates for shipping wheat by coasters to the Sea of Marmara from NW Black Sea ports (Ukrainian Yuzhny, Kherson, Odessa, Nikolaev, Ilyichevsk) made $21 per ton, from W Black sea ports (Varna, Burgas, Constanta) made $19 per ton and from NE Black Sea (Novorossiysk) — $19 per ton.
Freight rates for shipping metal scrap from NW Black Sea port to Marmara remained unchanged at $25 per ton.
Freight rates for shipping coal to Marmara from W Black Sea ports made $17 per ton, and from Novorossiysk $18 per ton.
Vessels have to seek shelter and are late for their next voyages due to the storm in the Black Sea. A large number of vessels accumulated in the Strait of Kerch and in the Bosporus. Despite the delayed voyages, charterer refrain from cancelling as the market is slowly picking up.
During week 5, onset winds are expected in the Sea of Azov, which will impact the ice conditions in the region. Ice hummock formation is predicted, which will make it difficult for ships to enter and leave Azov ports.
Business activities in the Azov region has fully restored after the New Year holidays, and there is plenty of cargo offers in the market.
The average freight rates for shipping wheat from Azov to the Marmara make $32 basis 3,000 tons. Increasing cargo offer could have led to higher freight rates, however, many charterers are faced with higher FOB prices in the port of loading, which reached a 3-month maximum during week 3, due to stronger ruble and increasing demand in the home market.
During week 3, the market saw a lack of tonnage. Most of the ‘river-sea’-going vessels operating the Azov will be opening in early February. And the fact that ships will be opening on the same dates may force the freight rates down on weeks 9-10.
Turkey has cancelled a due for barley until April, and cut the due for wheat substantially. In a short term, this is likely to support the freight market and even lead to a rise in freight rates for a short period of time.
We remind you that the rates cited in this article are average market rates. We ask our readers to pay attention that this information is not a commercial offer and cannot be an example for comparison in commercial disputes and arbitration proceedings.