During week 5 freight rates for shipping cargo by coasters and Handysize bulkers in the Black Sea market remained much on the previous three weeks’ level.
According to Glogos Project, freight rates for shipping wheat to the Sea of Marmara from NW Black Sea ports (Ukrainian Yuzhny, Kherson, Odessa, Nikolaev, Ilyichevsk) by coasters made $21 per ton, from W Black sea ports (Varna, Burgas, Constanta) made $19 per ton and from NE Black Sea (Novorossiysk) also $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.
According to Glogos Project, freight in the Azov basin remain on the level of the 4th week despite of the expectations of ship owners. The average rates for voyage with wheat basis Rostov – Marmara route amount to $32 per ton. Such situation on the market developed a «wait-and-see» attitude among ship owners who engaged in firm negotiations only in front of desirable freight, otherwise trying to determine market movements for next few weeks.
The ongoing lack of volatility on the Azov’s market is relying heavily on previously contracted consecutive voyages, which most first-class charterers managed to conclude even on mid-January dates. Bearing in mind substantially lower freight level of that period, reduced demand for additional tonnage from the major market participants is obvious for the time being.
Soon, however, the situation may change towards an improvement of workable freight rates level. According to the forecast, on the 6th week in deterioration of weather conditions such as loads of snow with rain, frosts and intense squally wind are expected the Azov region. Port agents assume the possibility of formation of large ice hummocks, which could cause substantial difficulties in navigation in the Azov’s basin. As a result, ship owners are very reluctantly considering calls to Rostov/Azov, shifting their preferences of fleet employment on voyages ex other safer ports.
Thus, if a severe ice situation develops in the region, the necessity for ice-class tonnage must grow, subsequently affecting rates for ice-classed vessels. The fleet which is not ready to work in such weighty circumstances will be repositioned on voyages ex ice-free ports of the Black Sea, which is bound to weaken fleet supply in the Azov area.
Please note 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.