During week 48, the activity in the Azov market remained unchanged. Rates on the Rostov to Marmara basis were at the level of $23 per ton of wheat. Owners, on their part, are trying to raise the market by offering equally inflated rates. Despite the fact that owners are ready to discuss almost any cargo, negotiations are proceeding slowly; there are not many fixed voyages, and there is still enough open fleet, Glogos Project reports. Charterers who have contracts to ship in December see no grounds for the market to grow: it is rumored that demand on the side of buyers is low, despite the declining purchase prices.
The Azov market is likely to remain at the same level on week 49. Bad weather, which is expected in the region, will give time to “guard” own interests for rates, so the 49th week will be key in forming the market level for December.
The Black Sea coasters market is on standby. November proved to be quite active, both in terms of the volume of shipments from the region’s deep-water ports, and in regard of the high freight rates level. There are not many new parcels with laycan on December dates. Prices for grain from Ukraine are quite high, according to the results of the last GASC tender. In the domestic Ukrainian market, producers are in no hurry to reduce prices, which does not help traders to fulfill their programs. The domestic market is considered as a serious alternative to exports, and the rest of the year is expected to be quiet.
Russian wheat for delivery in January was the most competitive in the GASC tender. Shipments from Novorossiysk and Taman won on FOB basis. Perhaps, two more parcels will be shipped from the Kavkaz roads, but they also have an option for Novorossiysk and Taman. In this regard, a reduction of the Kavkaz roads transshipment program is expected in January. The freight market continues working on spot/prompt.
According to Glogos Project, on week 48, freight rates for 3,000-5,000 dwt vessels for wheat parcels to the Sea of Marmara made $23 pmt from Rostov and Azov, $22 pmt from Yeisk and Taganrog, and $20 from Temryuk.
Freight rates for coal to the Sea of Marmara made $22 pmt from Rostov and Azov, $21 pmt from Yeisk and Taganrog, and $19 from Temryuk.
Freight rates in the Caspian market added a couple of dollars.
Freight rates for 3,000 dwt vessels for barley to Iran made $24 pmt from Astrakhan, $20 from Aktau and $21 pmt from Makhachkala.
Please note 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.