+380 67 625 91 65The Black Sea small tonnage charter market continues to experience significant pressure due to a lack of activity and a limited amount of cargoes. Shipowners are unable to significantly increase rates, despite the continued demand for Ukrainian grain, which remains the most demanded cargo in the region. Transportation volumes remain low, which keeps rates at minimal levels, although there is a slight positional growth. For example, the transportation of 10-12 thousand tons of wheat from Chernomorsk to Tunisia is estimated at mid $20 per ton, which is equivalent to $3.4-3.7 thousand dollars per day. The situation is aggravated by weak activity in other segments, such as steel and fertilizer transportation. For example, the rate for transportation of 3 thousand tons of steel from Burgas to Larnaca is $20 per ton, which barely covers operating costs. Forecasts for the Black Sea remain subdued, with little expectation for improvement in the coming weeks. Demand for grain transportation remains limited, and if export shipments do not increase, shipowners will continue to face difficulties in improving their market position.
The market for small tonnage charters in the Mediterranean Sea is also facing serious problems, despite some recovery in some segments. The main difficulty is a lack of cargo offers, which leads to stagnation in rates and intensifies competition among shipowners. Steel and fertilizer shipments remain in demand, but cargo flows are limited. For example, the rate for 7,000 tons of steel from Izmir to Damietta is negotiated at $17-18 per ton, equivalent to $4-4.2 thousand dollars per day. The market is also suffering from excess tonnage, which puts additional pressure on rates. For example, the carriage of 3,000 tons of mineral products from Mersin to Murdijk is negotiated at a high price of €30 per ton. The outlook for the Mediterranean remains pessimistic, and despite signs of recovery in some segments, the overall market remains weak.
The Azov Sea small-capacity vessel charter market continues to show low activity, creating significant pressure on rates. The main problems are related to the excess of vessels and lack of cargoes, which limits shipowners’ ability to increase income. Grain transportation remains the main direction, but even here, rates remain low. For example, the transportation of 3,000 tons of corn or peas from Rostov to Marmara is discussed at a rate of $23-24 per ton, which is equivalent to $1-1.3 thousand dollars per day. The situation is complicated by excessive tonnage, which forces shipowners to agree to unfavorable conditions to maintain minimal activity. For example, rates for 3-5,000 tons of wheat transportation from Yeisk to the Adriatic Sea are negotiated at $40-45 per ton, which indicates low demand and tough competition. Forecasts for the Sea of Azov remain subdued, and significant improvement in market conditions is unlikely in the coming weeks as transportation demand continues to be weak, and vessel surpluses add pressure on rates.
