During week 7 freight rates for shipping cargo by coasters in the Black Sea market increased by $1. Rates for Handysize bulkers remained on the previous 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 $22 per ton, from W Black sea ports (Varna, Burgas, Constanta) made $20 per ton and from NE Black Sea (Novorossiysk) also $20 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.
Since early February, freight level in the Azov region have been displaying a slow firm growth. Thus, rates during week 7 continued to gain at the same pace – plus $1 compared to week 6 – and amounted to $36 per ton basis voyage ex Rostov to Marmara with wheat.
The increasing rate tendency propels shipowners to take a pause and wait until early March – paying time to make profitable contracts at higher rates. Market participants suppose that the stable cargo flow will remain regular in the region for the next couple of weeks at least.
The weather in the Azov basin is about to make some adjustments to the freight level. The charterers were looking for the weather conditions to improve, leading to abolition of ice restrictions and increase in fleet without an ice class. But, contrary to their expectations, weather forecasts show a serious deterioration in the Azov Sea: air temperature is to fall to -13 degrees Celsius, which could lead to formation of thick ice fields. Therefore, the number of vessels in the ADSC will decrease even more: the tonnage will move from the ports of Azov and Rostov to Yeisk and Temryuk, where ice formation is not predicted. But a reduction in freight cost from ice-free ports is quite expected due to the increase of fleet supply.
Shipowners who work ex Ukrainian Black Sea ports have recently shown an increased interest for backhaul voyages. In the high freight market season it was not profitable to lose time on additional port call and loading operations, fleet tried to return as quickly as possible for the main cargo, grain. Now when the intensity of shipments from Ukraine to Turkey is falling, and this situation will continue until the high season in late June – early July, shipowners are more willing to consider the backhaul, trying to employ their fleet on any job just to avoid idling the vessels.
The rates for a voyage with wheat basis Astrakhan – Iran show a smooth increase and have reached to $47per ton, which is $1 more compared to the 6-week period. Basically, this is due to the declining quantity of available tonnage, ready to work from the ports of Astrakhan due to heavy ice. Because of the deterioration of the ice conditions in the northern part of the Caspian Sea, shipowners prefer to take voyages from Aktau and so as not to incur financial losses and waste weeks waiting for the caravans to enter and exit to the Volga-Caspian Channel. Nowadays there is an abundance of fleet without an ice-class in Aktau – here tonnage from the frozen terminals of Astrakhan has been redeployed, therefore rates on the Aktau – Iran route are reducing. In addition, Exporters of wheat, barley and corn in the Caspian are showing notable activity, supporting firm traffic and high demand for tonnage for the coming weeks.
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 proceedings.