+380 67 625 91 65On the Black Sea markets, the situation remains complicated and tense for shipowners. The problem is aggravated by excessive tonnage, which has accumulated in ports and on roads, and weak activity of main importers. They are not in a hurry to form large consignments, which additionally slows down the market. Approaching holidays do not justify expectations of freight rate growth. Grain offers remain unstable, and demand for metal products is falling to an unusually low level. Shipowners are trying to keep rates at acceptable levels, but market conditions are complicating stabilization efforts. Even isolated fertilizer volumes coming from some regions are not leading to a noticeable improvement in the situation, leaving the market stagnant.
In the Mediterranean, the small tonnage sector is facing a deep gap between available tonnage and limited cargoes. Traditional categories of goods – grain, metal products, industrial cargoes – are not attracting the same interest, which intensifies competition. Shipowners are forced to make significant concessions in order to get at least a minimum load. It is especially difficult for owners of vessels with parameters that do not meet current market requirements. In a number of cases, the rates fall to the level when only operational expenses are covered, which is extremely untypical for the holiday period. There are no signs of improvement in the region yet, and most market participants are cautious about the prospects. Significant positive changes are not expected in the near future.
Azov region continues to experience the pressure of unfavorable conjuncture. Limited grain volumes force shipowners to accept conditions, which were previously considered unacceptable. Weather factors, such as storms, precipitation and ice conditions, which usually contribute to the growth of rates, have no noticeable impact this season. The lack of effective tools to regulate the market is forcing players to accept rate cuts as the new normal. The situation increases tension, as many had hoped for at least temporary stabilization, but the facts say otherwise.
