On week 21, freight rates continue to rise in the Sea of Azov region. The freight level for Azov – Marmara has already reached $27-28 pmt for a 3,000 mts wheat parcel. Most charterers try to ship their cargo before the end of May, which, in combination with the shortage of spot tonnage, leads to a rapid increase in freight rates, Sea Lines shipbrokers report.
W.e.f. June 2 Russia is imposing a flexible export fee on wheat, corn and barley, which will be calculated by the Ministry of Agriculture on a weekly basis based on the prices specified in export contracts. The fee will not be applied to grain exports below the base price ($200 per ton for wheat, and $ 85 for corn and barley). For export shipments exceeding this level, the floating due will be 70% of the difference between the previous week’s export price and the base price.
As export prices will be changing every week, the level of duty will be changing accordingly, which is going to complicate concluding contracts for grain traders, Sea Lines expects.
The impact the flexible export fee is going to have on the wheat, corn and barley markets is not clear yet, but most players suppose the activity will slow down by mid-June and freight rates will decrease.
On week 21, freight rates for 3,000-5,000 dwt bulkers from the port of Azov went up significantly.
According to Sea Lines, freight rates for wheat parcels from Azov made $25 to the Black Sea, $27 to Marmara, $39 to Mersin and $42 to Egypt.
Freight rates from Rostov AB (after bridge) are $1 above, from Rostov BB (before bridge) the same, from Yeisk and Taganrog $1 below, and from Temryuk $3 below those from the port of Azov.
In the Caspian, freight rates moved up a dollar or two.
On week 21, freight rates for shipping corn by 3,000 dwt bulkers to Iran made $30 from Aktau, $33 from Makhachkala, and $35 from Astrakhan.
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.