One of the important news for the grain market this week was the setting of a tariff quota of 17.5 mn tons for the export of wheat, rye, barley and corn outside the Customs Union next year from February 15 to June 30. Within the quota limits, a duty of €25 per metric ton is imposed on wheat exports (the rest of the grains are not subject to duty). If the quota is exceeded, the export duty will be 50% of the customs value, but no less than €100 pmt. This decision was taken to stabilize the price of flour and bread.
According to Sea Lines ship brokers, in the deep sea market, both in the Baltic and in the Black Sea region, the freight rates for Handy and Supra-type vessels remain stable and maintain the level of last week.
On week 51, freight rates for 30,000-35,000 dwt bulkers from Ust-Luga slightly increased for most destinations.
Thus, rates on the Ust-Luga – Continent – Ust-Luga were $18 pmt, rates from Ust-Luga to ARAG made $19 pmt.
Rates from Ust-Luga were $31 pmt to West Med rates, and $33.5 pmt to East Med.
Rates for 30,000-35,000 dwt bulkers from Ust-Luga to the Black Sea amounted to $36 pmt, rates to the Persian Gulf were $42 pmt.
The Baltic region continues to be quite active in terms of the amount of shipments. Most ship owners prefer to keep their fleet within the Baltic Sea because of the continuing increase in freight rates. Thus, the minimum rate for s 5k vessel from the port of Kotka to Klaipeda is already €18.50 per ton. Although, some ship owners do agree to go in ballast for really attractive cargoes, mainly to British and ARAG ports, Sea Lines reports.
Most European charterers try to fulfill their contractual obligations before the holidays, which is why the demand for spot tonnage is increasing. This refers not only to the Baltic region but also to the Black Sea and the Mediterranean. Thus, the freight rate for a 6k grain shipment from Ukraine to Morocco is on the level of $37-38 pmt. According to Sea Lines, Morocco, South Spain and North Africa are now popular destinations for the grain trade.
In addition to the active spot shipments, part of Baltic Sea charterers are already looking for a fleet for their cargo for the end of January. This may be good news for Black Sea ship owners. Many of them are now performing voyages to the Baltic Sea ports and can already find next cargo for their fleet.
On week 51, freight rates for smaller bulkers from Ust-Luga continued to grow.
Thus, rates from Ust-Luga to Klaipeda were €19.75 pmt, and those to Riga and Stockholm were €17.5 pmt.
Freight rates from Ust-Luga to Hamburg made €29 pmt, and to Bremerhaven €29.75 pmt.
Rates from Ust-Luga to ARAG were €33 pmt, and those to Dublin €41 pmt.
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.