+380 67 625 91 65The freight market in the Black Sea remains in an extremely depressed state, characterized by a shortage of cargo and severe pressure from charterers. The bulk of grain offers are on a sub-sale basis, in which bids are accepted only at extremely low levels, otherwise no deals are concluded. In addition to weak grain traffic, the situation is complicated by sluggish demand for other cargoes — steel, fertilizers, construction materials and raw materials — which makes it impossible for ships to compensate for losses on alternative routes. The volume of available tonnage remains high, which increases competition between ship owners. Even minor improvements in load conditions do not lead to an increase in rates, as the overall market is overloaded with supply. The lack of a seasonal surge in activity and Ukraine’s limited export potential only exacerbate the situation. The outlook for the region remains negative: with the current level of supply and weak demand, any noticeable recovery is unlikely in the near future.
The Mediterranean market for small-capacity vessels continues to experience serious difficulties due to an acute shortage of new cargoes. Despite the fact that the region has traditionally demonstrated great stability, in recent weeks, ship owners have faced difficulties in concluding contracts on acceptable terms. The main volume of transactions is at the level of previous rates, even despite the increase in costs associated with the transition to more expensive fuel. Activity in the market is practically not supported by either agricultural or industrial cargoes — operations on fertilizers, steel and cement are carried out selectively and often on conditions that do not cover operating costs. The number of open vessels of all size categories remains high, which makes it impossible to change the balance in favor of the owners. Against the background of weak momentum from exporters and a general seasonal lull, the outlook for the region remains subdued, with no signs of an immediate improvement in freight conditions.
The situation in the Sea of Azov is the most acute among all regions, where activity continues to decline and freight rates are under constant pressure. Grain and coal shipments from Russian ports remain the main drivers, but shipments are decreasing, especially towards Turkey. In the face of growing competition between riverboat owners, many are forced to accept minimum rates or stop the fleet altogether in anticipation of better conditions. Even earlier, the more stable segment of vessels of 2-4 thousand tons is now experiencing difficulties, being inferior in price and conditions to larger competitors. Profitability indicators for most vessels have dropped below the level of operating expenses, which makes work in the region unprofitable. The prospects for the near future are also not encouraging — an increase in volumes or rates is possible only with a significant recovery in demand from major importers, which has not yet been observed.