+380 67 625 91 65In the Black Sea, there is a stable depressive situation in the freight market for small tonnage vessels. The main reason was a sharp decrease in the number of new grain offers, especially from Ukrainian ports. At the same time, ship owners face severe pressure from charterers, who seek to minimize rates, focusing on a falling market. The general congestion of tonnage and the growing number of vessels only increase competition, while the available cargoes do not cover parts of the existing fleet. Many owners are forced to make concessions in order to avoid downtime and at least partially cover operating costs. Even the activity of transporting agricultural products to Turkey, Egypt and Southern Europe is not able to stabilize the situation. No significant improvements are expected in the region before the start of the new grain season, and the bet on restoring activity has been postponed until at least the end of June.
In the Mediterranean, the situation remains difficult due to the apparent imbalance between the supply of tonnage and the demand for transportation. The total number of available vessels significantly exceeds the volume of cargo offered, which makes the market favorable for charterers, but unprofitable for ship owners. Against the background of low activity in the trade of mineral fertilizers, metals and building materials, charterers continue to reduce rates, forcing shipowners to accept less favorable terms. Some routes show signs of overheating in terms of competition, especially in the eastern Mediterranean. Attempts to keep rates at an acceptable level are faced with a lack of systemic demand and short-term supply. In conditions of high volatility, ship owners often prefer any kind of contract, just to keep the load. No significant recovery is expected in the region in the near future, and the market is likely to remain in a phase of weak demand.
The Sea of Azov remains one of the most difficult regions in terms of freight. The main volumes of grain cargo, primarily wheat, arrive irregularly and in limited quantities, which makes flight planning difficult. Shipowners are faced with extremely low load and a high proportion of idle runs, which negatively affects the economy of flights. The demand for additional cargo transportation, such as bran and coal, is not able to compensate for the shortage of grain. The level of long-haul freight also makes it impossible for shipowners to cover current costs, especially against the background of growing competition and a general drop in rates. Pessimism in the region is increasing with each new reporting period, as the prospects for volume recovery are still extremely vague. It is premature to talk about market recovery in the Azov basin before the resumption of active agricultural shipments and the emergence of stable export demand.