+380 67 625 91 65The small-tonnage market in the Black Sea shows improvement despite difficult conditions. With the start of the new grain season, activity is gradually increasing. Shipments of grains such as wheat and corn, although still minimal due to weak demand from Mediterranean buyers, are showing signs of revival. Turkey’s ban on wheat imports is still limiting trade volumes, but the impact is gradually diminishing. Excess tonnage supply is still putting pressure on the market, but the number of idle vessels is starting to decline. Corn and wheat are being transported at rates that are starting to exceed $20 per ton, which is a positive signal for the market. The near-term outlook shows cautious optimism. Grain shipments are expected to continue to grow, leading to an increase in overall transportation demand.
The small-tonnage market in the Mediterranean is also under pressure due to a supply-demand imbalance. Despite the return of market participants after the Istanbul dinner of ship brokers and the official start of the new grain season in Europe, market activity remains low. Absence of fresh cargo aggravates the situation. Demand for cargoes such as coal, fertilizer and grain remains weak. Turkey continues to restrict wheat imports, which reduces trade volumes and puts pressure on freight rates. Despite some positive signals, such as increased demand for steel and fertilizer shipments, the overall picture remains unfavorable. Freight rates continue to decline. In such an environment, the outlook for the near future remains uncertain.
The small-tonnage market in the Azov Sea is in an extremely difficult situation. Despite the start of the new grain season, activity remains minimal. There is almost no demand for the transportation of grain crops such as wheat and corn, which puts strong pressure on freight rates. Many vessels remain idle or are forced to compete for a few cargoes, causing freight rates to drop to critically low levels. The main cargo traffic in the Sea of Azov consists of shipments of corn and other agricultural products to Turkey, as well as occasional shipments of coal and fertilizers. Freight rates for the transportation of corn and other grain crops fell to the level of $14–18 per ton, which is extremely low for this market. The forecast for the near future remains negative.
As a result, freight rates in the Azov Sea are likely to remain at a low level in the coming weeks.
