+380 67 625 91 65Black Sea freight market has been experiencing significant changes in recent weeks. The main factor affecting the rates is excess tonnage. Currently, there are more than 370 vessels with deadweight from 2 to 12 thousand tons available on the market, which significantly exceeds the number of available cargoes. This leads to high competition among shipowners, forcing them to reduce rates to get orders.
The situation is complicated by the news about the change in Bosporus passage conditions from July 1, which prompts some shipowners to try to raise rates. However, demand for transportation remains low, despite the approaching new grain season. For example, shipowners seek to get rates around $30 per ton for transportation of 5-7 thousand tons of corn from Black Sea ports to Mediterranean, while Charterers are not ready to pay more than $20-25 per ton.
The Mediterranean freight market is also facing tonnage surpluses and cargo shortages, which continues to put pressure on freight rates. Despite seasonal fluctuations in demand, the outlook for the coming weeks remains disappointing. Excess tonnage and low demand will restrain the recovery of rates in the market.
Turkey’s ban on wheat imports from June 21 had a serious impact on the Azov Sea market. About 60% of all cargoes from Russian Azov Sea ports were wheat shipments to Turkey. The introduction of the ban led to a sharp decline in transportation volumes and a drop in freight rates.
Rates on short-term routes from Azov Sea ports decreased by $4-6 per ton, and on long-term routes – by $8-10 per ton. The forecast for the nearest future for Azov Sea freight market remains gloomy. Turkey’s ban on wheat imports has significantly reduced transportation volumes, and it is unlikely that the situation will improve in the coming months.
