+380 67 625 91 65Black Sea freight market is under pressure from decreasing demand for Ukrainian grain transportation. Domestic prices remain high, while CIF quotations continue to decline, which makes Charterers offer less attractive rates to shipowners. On traditional routes, such as routes from Izmail to Italy and other Mediterranean ports, there is a decrease in activity. In the current conditions shipowners are forced to make concessions in order to keep at least minimal load of their vessels, even if it reduces expectations of the shipowners.
The situation on the Mediterranean market remains tense due to the imbalance between available cargoes and freight supply. Ship operators are forced to look for opportunities for longer crossings as cargoes are scarce on local routes. On some routes, such as fertilizer and metal transportation, rates are falling as Charterers are actively seeking lower prices. In such conditions, shipowners try to maintain at least a basic level of income, but Charterers’ demands force them to make significant concessions.
In the Azov Sea rates remain at a low level due to weak demand for Russian wheat exports to Turkey. Although coal transportation is supporting the market a bit, it is not enough to increase rates significantly. Charterers are trying to cut costs by insisting on lower prices for grain routes, especially towards Turkish ports. Under these conditions, shipowners are forced to accept less favorable rates to avoid idle vessels, as overall activity in the market remains low.
