On week 47, a rapid growth of freight rates has continued in the Azov-Black Sea region. Thus, contracts for 3K wheat parcels from Azov to Marmara Sea ports are concluded on the average at the level of $59 pmt. At the same time, at the beginning of this week, most shipowners asked mid-60s for their vessels, Sea Lines shipbrokers report.
However, both charterers and shipowners feel that rates cannot be growing forever and are preparing for a decrease. And, actually, a certain turning point in the market is beginning to occur due to the extremely unfavorable situation in Turkey, where the lira exchange rate fell sharply earlier this week, breaking another anti-record. As a result, the conclusion of new sales contracts for Turkey has practically stopped. Given the fact that shipowners mostly consider short voyages no further than Marmara, this should inevitably affect freight rates.
As for long-distance voyages, freight rates for them are even higher than those for Marmara, since almost none of shipowners are prepared to take cargoes to Italy, Egypt, Malta or Mersin. Among other reasons, shipowners are discouraged from taking voyages to Europe by the prospect of getting to the port of discharge during Christmas holidays.
As navigation in the Volga-Don Canal is closing on November 27, this week shipowners had to decide in which region they prefer to work for the winter.
On week 47, freight rates for 3,000-5,000 dwt bulkers from the port of Azov grew significantly.
According to Sea Lines, freight rates for wheat parcels from Azov made $57 to the Black Sea, $59 to Marmara, $80 to Mersin and $86 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 region, an increase in freight rates is also observed. The number of requests from Astrakhan has decreased and the main flow of goods comes from the port of Makhachkala. This week, freight rate for 3K corn parcels from Makhachkala to North Iranian ports has reached $35 per ton.
On week 47, freight rates for shipping corn by 3,000 dwt bulkers to Iran made $30 from Aktau, $35 from Makhachkala, and $43 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.