+380 67 625 91 65The Black Sea freight market shows moderate signs of recovery after the Global Grain conference, but there is no significant increase in activity. The main obstacle to concluding new deals remains a big gap between shipowners’ expectations and Charterers’ capabilities. In some cases, shipowners are forced to make concessions and agree to less favorable rates in order to ensure loading. Deteriorating weather conditions, including the temporary closure of Sulina channel, added short-term logistical difficulties. Despite this, rates continue to decline, especially for flights from Ukraine. In the near term, pressure on rates will continue due to weak demand for grain cargo transportation. Without increased export volumes and higher grain prices, further market recovery remains unlikely. Seasonal deterioration of weather conditions may only temporarily support rates.
In the Mediterranean Sea, the situation remains difficult for shipowners. The surplus of available vessels with a limited number of cargoes intensifies competition. Up to 8–10 vessels are sometimes claiming for one cargo, which does not allow increasing rates. Fertilizer and steel shipments from Egypt provide temporary support, but the situation is particularly tense in the western part of the region. Shipowners are increasingly looking at long ballast crossings in search of more favorable contracts. The pressure on the market will continue, and rates are likely to remain low. A positive effect may be provided by the growth of transportation volumes in the eastern part of the region or further deterioration of weather conditions.
In the Sea of Azov, rates are showing stability despite the approaching ice campaign and deteriorating weather. Weak wheat exports remain the key constraint. Some support to the market is provided by coal transportation, but its volumes are not enough to stabilize rates. Charterers actively use the current situation, offering rates that are often unfavorable for shipowners. Long-term voyages are in demand, but they are rarely profitable. The ice campaign may reduce the number of available vessels, which will slow down the fall of rates, but without growth of demand for grain cargoes, the market will remain under pressure. Rates are unlikely to show a noticeable recovery.
