+380 67 625 91 65There is a slight revival in the freight market in the Black Sea. This is due to the growth of offers for grain transportation from Ukraine, especially to Italy and Spain. However, due to the large number of available vessels, shipowners cannot raise rates. In reality, they have decreased by $1 per ton, despite attempts to fix higher levels. For example, the cost of shipping 10,000 tons of wheat from Chernomorsk to the Italian Adriatic has dropped to $23 per ton. This corresponds to an income of $2.6-2.8 thousand per day. Corn transportation also shows low rates. Forecasts for the coming weeks show a stabilization of rates. A slight growth of $1 per ton is possible. With increasing volumes of grain transportation, especially corn, rates may grow with the beginning of the new harvest in Ukraine. However, if transportation volumes do not increase, the growth of rates may be limited.
The market for light tonnage vessels in the Mediterranean remains under pressure. This is due to the excess of vessels and the low activity of shippers. A slight revival in grain shipments from European ports did not lead to significant changes. Supply situation for other cargoes, such as steel and fertilizers, remains weak. Freight rates remain at the same level. Shipowners are reluctant to cut prices, expecting the situation to improve. For example, a deal to carry 5,000 tons of wheat from Seville to Livorno was negotiated at €20 per ton. This generates a revenue of $5-5.5k per day. The outlook for the Mediterranean is disappointing. As long as demand for transportation remains low, freight rates will remain at their current levels. The market will continue to be under pressure due to an excess of vessels and a lack of cargoes.
In the Sea of Azov the market is stable. This is despite limited cargo transportation volumes and an excess of available vessels. Coal transportation remains the main driver. They keep the rates stable. For example, deals to transport 3,000 tons of coal from Rostov to TBS are concluded at a rate of $22 per ton. This is equivalent to $1.8-2k per day. Grain shipments also continue, but rates remain moderate. For example, the transportation of 3,000 tons of wheat from Azov to Marmara is negotiated at a rate of $24.5-25 per ton. This yields $1.3-1.4 thousand per day. On longer routes, the rates may be higher. Forecasts for the Sea of Azov are cautious. Despite stable rates for coal transportation, the market remains limited due to weak demand for the transportation of grain and other cargo.
