During week 4 freight rates for shipping cargo by coasters and Handysize bulkers in the Black Sea market remained much on the previous week’s 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, under the current market circumstances in the Azov region some charterers are trying to base their work on available tonnage. Such companies quickly confirm conditions without much haggling over details, and take a vessel on SUBs. After that they start to search for a seller and a buyer for the voyage. In the majority of cases, the deal falls through, however, they create a bubble by these actions, unconsciously pushing the market up. Owners that have received confirmations to their ideas already reluctantly come down on the freight rate.
As the practice shows, last two weeks the Sea of Azov has been totally lacking spot tonnage. This can be explained by market growth: delayed vessels mostly receive extensions, since they were fixed $2-3 cheaper than the market rates. The charterers working in the region and monitoring the situation enthusiastically negotiate any dates offered by ship owners, therefore freight rates still have a tendency to grow.
The ice situation in the Azov region remains moderate for this time of the year. There is no problem with passing to berths or awaiting ice-breaker assistance for long. Despite this, only a few ship owners decide on loading in Rostov AB – mainly those who arrived for discharge with return loads.
The market of forage grain is showing some degree of activeness. Charterers are requesting indications for sugar beet pulp, wheat bran and grain husks from the Azov region to Europe – Adriatic or Spain. Voyages in that direction probably will soon become more frequent, which will drive the market upward. At the present stage, there is only vivid, but not firm interest from charterers’ side.
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.