+380 67 625 91 65The Black Sea freight market continues to be unstable, despite shipowners’ attempts to hold freight rates. Demand for grain transportation remains low, which limits growth of freight rates even with slight reduction of tonnage. Fertilizer exports support activity, but their volumes are insufficient to change overall dynamics. Shipowners, trying to compensate for weak demand, prefer to keep vessels in ports in anticipation of more favorable conditions. Metal exports remain at a low level, which also does not contribute to market revival. No significant changes are expected in the near term, as grain price growth in the region remains moderate, and traders seek to minimize logistics costs.
Mediterranean freight market is facing tonnage surplus, which puts pressure on freight rates. Slowdown of fertilizer shipments on key routes and weak growth of steel exports from Turkey create additional difficulties for shipowners. Many shipowners are forced to keep freight rates at the level of previous deals, despite pressure from shippers. There is still high competition in the segment of small vessels, which restrains any attempts to increase freight rates. Transportation of construction materials and minerals remains unstable, giving no reason to expect improvement of the situation in the coming weeks. If current trends continue, the Mediterranean freight market will remain under pressure, and traders will continue to reduce logistics costs, taking advantage of market weakness.
The Azov Sea freight market remains in a difficult situation due to low demand for grain and coal transportation, which does not allow shipowners to increase freight rates. Additional pressure is exerted by ice restrictions, which allow only vessels with appropriate strength class to join convoys, thus reducing available tonnage. However, even these restrictions have not led to an increase in freight rates, as the demand for transportation remains extremely low. Shipowners are forced to accept minimum freight rates, as there are practically no alternative cargo flows. Overall market situation remains depressive, and no significant changes are expected in the coming weeks. Carriages will be carried out at the lowest possible freight rates, and the supply-demand balance will remain in shippers’ favor.
