+380 67 625 91 65The market for small-capacity vessels chartering in the Black Sea is gradually recovering, which is facilitated by the increase in the volume of grain shipments from Ukrainian ports. However, excess vessels still create difficulties for shipowners, who cannot achieve significant growth in freight rates. During the last week, the cost of transportation increased only by $0.5-1 per ton. Demand for grain transportation to such countries as Italy and Greece remains stable. Situation with the transportation of other cargoes, such as coal or fertilizers, also remains difficult. Forecasts for the Black Sea in the coming weeks remain cautious. Although demand for grain transportation is expected to continue, especially with the new harvest, significant growth in rates is not expected.
The situation on the market for small-tonnage vessels chartering in the Mediterranean Sea remains rather tense. Surplus of vessels and limited cargo supply continue to keep freight rates at a low level. The main commodities transported – grain, steel and fertilizers – support the market, but this is not enough to significantly increase profitability. Grain and fertilizer shipments in small volumes provide only temporary relief. For example, on a 4,000-ton corn route from Greece to Southern France, rates are hovering between $22-23 per ton, which is only marginally higher than shipowners’ operating costs. Despite a slight increase in traffic, the outlook for the Mediterranean remains subdued.
The Azov Sea freight market is also in a difficult situation, where excess tonnage and limited cargo volumes continue to keep rates low. The main cargoes – grain and coal – remain in demand, but their volume is not enough to significantly improve market conditions. For example, the transportation of 3,000 tons of wheat from Azov to Turkey is negotiated at $26-27 per ton, which is equivalent to $1.5-1.6 thousand per day for shipowners. Forecasts for the Azov Sea remain cautious: in the coming months, shipowners hope for growth of demand for grain shipments due to autumn season, but excess of vessels will still limit growth of freight rates.
