+380 67 625 91 65Freight market for small tonnage vessels in the Black Sea is facing serious challenges. Despite the beginning of the new grain season, the growth of rates on short routes from Ukrainian ports was insignificant – only $1–1.5/t, and on long routes – $2–2.5/t. The main problem is the slow growth of new wheat exports to Mediterranean countries. In addition, fertilizer supply from Egypt has been reduced to a minimum due to high prices and lower production, adding to the difficulties in the eastern Mediterranean. Shipowners are trying to raise rates, but it is difficult to do so. For example, shipments of up to 6,000 tons of wheat from Izmail to Alexandria are negotiated at $22.5–23/t, equivalent to $1.1–1.3k/day. Demand for grain shipments remains moderate, with a slight increase in activity, reflected in deals for 5-6,000 tons of corn from Izmail to Larnaca at $22-23/t, equivalent to $2-2.3k/day.
Forecasts for the Black Sea remain restrained: without significant growth in demand for grain transportation, rates are unlikely to increase significantly. Shipowners and brokers hope for improvement, but the current excess of tonnage and weak demand limit market growth.
In the Mediterranean Sea, the charter market for light tonnage vessels continues to face serious challenges. A severe shortage of new cargo offers continues to pressure the market. Despite requests for the transportation of mineral and steel products, there is no stable cargo supply. Shipments of fertilizers, especially from Egypt, are virtually nonexistent, exacerbating the situation. For example, the carriage of 5,000 tons of steel from Marmara to Romano was contracted at a rate of $18–18.5/t, equivalent to $2.1k/day. Shipowners are forced to accept low rates in order to load their vessels, as in the case of a deal to transport 1,500 tons of steel from Thessaloniki to Ancona at a rate of about $40/t.
The outlook for the Mediterranean remains pessimistic. Shipowners cannot expect a significant improvement in the situation in the near future due to an acute shortage of new cargo offers.
In the Sea of Azov, the freight market for small tonnage vessels shows moderate signs of revival. Demand for grain and agro-products transportation has slightly increased, which has allowed shipowners to increase freight rates. For example, the transportation of 3,000 tons of wheat bran, peas or corn from Rostov or Azov to Marmara is negotiated at $22-23/t, which is equivalent to $0.9-1.1 thousand/day. Longer routes are also seeing an increase in rates, for example, the transportation of 5,000 tons of wheat from Yeisk to Alexandria is discussed at $40/t, which is equivalent to $1.8-2 thousand/day. Forecasts for the Sea of Azov remain subdued, but with little optimism. Demand for grain and coal transportation may continue to support moderate growth rates, but the overall excess of vessels on the market limits opportunities for a significant rate increase.
