News of the freight market as of 12.02.2024

There is a steady demand for transportation in the Black Sea market, mainly due to regular shipments of Ukrainian grain and small shipments of Russian cargoes. Despite a small surplus of available vessels, freight rates remain at a level satisfactory to both parties. This is explained by a mutual desire to avoid idle time and adjust to current market conditions.
This week, the main focus is on both grain and non-grain cargoes from Ukrainian ports of Chernomorsk and Odessa, as well as transportation along the Danube.
Continued pressure on grain prices and limited purchasing power in importing countries such as Turkey are limiting the prospects for increased cargo transportation. Shipowners are likely to be forced to maintain current freight rates, as it seems difficult to reduce them under favorable weather conditions.

There is stagnation of activity in the Mediterranean market: new cargoes are not appearing as often as shipowners would like. This is traditionally a difficult period for the market, given the decline in fertilizer shipments, one of the main demand drivers, from regional ports. In addition, the large amount of available tonnage gives charterers the opportunity to dictate terms.

Relative calm continues in the Azov Sea market due to limited demand for Russian grain and coal in Turkey. The number of available vessels is gradually increasing and delays in Kerch Strait are decreasing, which allows Charterers to put pressure on rates. Nevertheless, shipowners are successfully keeping rates at a relatively high level, despite current market conditions.


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