One of the major events of the week 49 in the Azov region was the confrontation between the weather and the market. Due to the dramatically low permissible draft in the ports of Rostov and Azov, the loading and movement schedule of vessels was disrupted, Glogos Project reports. The water level was less than 3 meters, which led to idleness of the fleet. Demand on the part of buyers was still low, and some charterers were trying to get a correspondingly low rate; however, due to delays in rotation caused by the weather, freight rates remained at the previous week’s level at about $23 per ton of wheat on the Rostov to Marmara basis.
Judging by the weather forecast, the situation in the Azov region may remain unchanged till the end of the year. Only fleet opening in December is expected to be active. Considering the fact that many vessels will have time to make only one voyage, and owners will try to fix their tonnage on the brink of holidays so as to avoid idleness, the struggle for “final voyages” will be at its highest in the second half of the month. Even now, an imbalance between rates for long-distance and short voyages is to be observed: while the former are declining due to high demand among owners, the latter keep at the same level amid the small number of confirmed fixtures.
It would be safe to say that unformed supply programs also helps the market stay calm, according to Glogos Project. Fluctuations in the US dollar exchange rate in Russia, conflicts of interest on the domestic market between exporters and producers in Ukraine: for many traders, these factors put sales on pause. After the high November, December looks weak and still uncertain, despite the fact that the coaster fleet in the Black Sea is in abundance in the middle of the month. If there is no significant volume of new cargo, the freight market will go down under the pressure of the plentiful spot tonnage supply.
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 $22 pmt from Rostov and Azov, $21 pmt from Yeisk and Taganrog, and $19 from Temryuk.
Freight rates for coal to the Sea of Marmara made $21 pmt from Rostov and Azov, $20 pmt from Yeisk and Taganrog, and $18 from Temryuk.
Freight rates in the Caspian market did not change.
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.