On week 2, 2018, freight rates for coasters in the Black Sea market did not change compared to the next to the last week of the year 2017.
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 $22 per ton, from West Black Sea ports (Varna, Burhas, Constanta) $20 per ton and from North-East Black Sea побережья (Novorossiysk) $21 за тонну.
Freight rated for shipping scrap to the Sea of Marmara by coasters from North-West Black sea ports were $25 per ton.
Freight rates for shipping coal by coasters to the Sea of Marmara from West Black Sea ports made $18 per ton, and from Novorossiysk $19 per ton.
In the Sea of Azov, with the coming of the New Year freight rates underwent steep correction. The cost of freight dropped $10 over the first week of January. The average level, wheat basis, on the Rostov – Marmara route was around $28 per ton.
During the second week charterers showed minimum activity. Some of them completed their programs even before the New Year and have suspended voyages for now, but some are still recovering after the celebrations and have not managed yet to conclude new contracts. Accordingly, an extreme lack of cargo orders occurred in the market, which generated excess supply of vessels, and a sharp drop in freight rates.
Starting from the end of week 2, the situation changed counter-wise, as traders’ activity grew and more parcels emerged in the market, which for the moment has halted rates drop and provided chances for a market rebound.
Among other factors, the market is influenced by the noticeably appreciated ruble. By estimates of market participants, large agro holdings, which harvest and export their crops by themselves, will feel confident this January, while ‘pure’ traders will need some time to get used to the new supplier prices.
As of the 1st and 2nd weeks of January, an accumulation of spot tonnage was observed in the Sea of Azov. Ship owners consider non-grain cargoes more willingly than before, to have the prospect of at least taking something and setting sail in hope that the market will settle within the nearest two weeks.
The ice restrictions introduced on January 14 gave hope to the owners of ice-classed vessels that the part of vessels unable to work in ice conditions will leave the market and freight rates for Rostov/Azov will go up.
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.