+380 67 625 91 65The Black Sea freight market shows some activity. This is due to the increase in offers for grain transportation from Ukraine, especially to Italy and Spain. However, shipowners cannot raise rates. The reason is an excess of available vessels. For example, rates for the transportation of 10,000 tons of corn from Odessa to the Adriatic are $25-26 per ton. This brings $1.7-2 thousand per day for shipowners. Rates for transportation of other grains remain at moderate levels. Shipments of other cargoes such as steel and coal, do not show significant growth. Forecasts for the Black Sea in the coming weeks are subdued. Shipowners are hoping for an increase in grain and corn shipments. But in the short term, rates will remain stable. A slight increase of $1 per ton is possible.
In the Mediterranean Sea, the situation remains difficult. Low demand for transportation and an excess of vessels do not allow raising rates. Grain and fertilizer shipments support the market, but their volumes are limited. For example, the rates for transporting 4,000 tons of urea from Egypt to Ravenna are about €10 per ton. This generates revenues of $2-2.1k per day for shipowners. The surplus of vessels in the region continues to put pressure on freight rates, making it difficult for shipowners to raise rates. Forecasts for the Mediterranean Sea are restrained. A slight increase in demand is expected. However, a surplus of vessels will not allow increasing rates significantly.
In the Sea of Azov, the situation is stable, but freight rates remain under pressure. The reason is an excess of vessels and a low volume of cargoes. Grain and coal remain the main cargoes. Demand for them is insufficient for the growth of rates. For example, rates for the transportation of 3,000 tons of wheat or corn from Azov to Marmara are $25 per ton. This generates a revenue of $1.4-1.6 thousand per day. Coal transportation also remains at a moderate level. For example, deals to transport 3,000 tons of coal from Rostov to TBS are chartered at $22-22.5 per ton, equivalent to $1.3-1.5 thousand per day. Forecasts for the Sea of Azov are restrained. Significant growth in rates is not expected in the coming weeks. Shipowners hope for demand growth in the fall, but the excess of vessels continues to restrain rates.
