+380 67 625 91 65The freight market in the Black Sea is under pressure due to reduced supply of small grain shipments, especially through Danube ports, amid rising logistics costs. Shipping logistics in the region are complicated by traders’ reorientation to deep-water Ukrainian ports for larger shipments, which deepens the imbalance between demand and tonnage availability. The surplus of small and medium class vessels remains, creating fierce competition among shipowners and restraining the growth of rates. Activity of scrap metal shipments from Romanian and Ukrainian ports does not compensate for the general decline in cargo flows, especially against the background of slowdown in grain shipments. Despite attempts to raise rates, freight remains stable due to high availability of vessels. Improvement of the situation is possible only with partial reduction of tonnage and growth of grain demand in spring.
In the Mediterranean Sea, shipowners are facing an acute cargo shortage amid a surplus of available vessels. Shipping logistics are complicated by declining shipments of steel and agricultural products, while shipments of fertilizers and minerals do not compensate for the overall stagnation. Attempts to keep freight rates at previous levels are facing a tough stance of charterers demanding cost reductions. Competition between vessels of all classes is intensifying due to uneven distribution of cargo flows, especially in the eastern part of the region. Revival of demand for niche cargoes such as timber and salt remains localized and does not affect the overall market. In the short term, stagnation will continue unless there is a significant reduction in tonnage or new major export initiatives.
The Azov Sea freight market demonstrates resilience despite ice restrictions and deteriorating weather conditions, including reduced navigational drift. Sea freight logistics in the region faces challenges such as reduced grain supply, especially wheat and corn, but is partially offset by stable coal and fertilizer shipments. Logistical difficulties such as strong winds and draft restrictions do not have a significant impact on rates due to charterers’ flexibility. Activity remains low at the ports of Temryuk and Yeisk, while Rostov and Azov face additional challenges due to freezing water areas. With limited cargo traffic, rates will remain stable, but further deterioration of weather or tightening of regulatory norms may temporarily upset the balance.
