News of the freight market as of 10.06.2024

Activity on the market of small tonnage vessels in the Black Sea remains low, with minimal trading volumes. Main cargo is Ukrainian agricultural products. Freight rates on most routes are minimal. The cost of shipping wheat and corn from Izmail or Reni to Egypt is less than $20 per ton, although shipowners are hoping for $21-22 per ton. A deal to carry 6,000 tons of wheat from Izmail to Alexandria is negotiated at $19 per ton, barely $1900 per day. Transportation of smaller shipments such as 3,000 tons of wheat is negotiated at rates of $21-22 per ton. Transportation of corn from Izmail to Egypt costs $21.5 per ton.

The situation in the Mediterranean Sea is also unfavorable. Cargo volumes, such as steel, scrap and fertilizers, support the market, but activity is extremely low. The imbalance between ship supply and cargo volumes is forcing ship owners to reduce rates. Freight rates for major cargoes such as steel and fertilizers decreased by $0.5-1 per ton during the week. For example, a shipment of 5,000 tons of steel from Marmara to Romano is chartered at $20 per ton. Transportation of fertilizers from Novorossiysk to Burgas is priced slightly above $20 per ton.

The Azov Sea chartering market is also experiencing a significant decrease in rates due to low sales volumes of Russian grain and coal. Charterers are reducing rates amid weak demand and an excess of vessels, which increases pressure on the market. Rates for wheat shipments from Azov/Rostov to Marmara Sea are $23-24/ton, while ship owners are aiming for $26-27/ton. The market is facing problems due to lack of fresh cargoes and high competition among Ship Owners, which leads to lower rates and worsening conditions for Ship Owners.

news of the freight market

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