+380 67 625 91 65The freight market for light tonnage vessels in the Black Sea continues to be stable, but is under considerable pressure. Shipowners are trying to raise rates, but the main problem – imbalance between the number of available vessels and limited cargo volume – does not allow them to do it. Activity in the market remains low, and rates fluctuate around minimum values. For example, the rates for transportation of 5-6 thousand tons of wheat from Izmail or Reni to Alexandria are about $20 per ton, while shipowners try to raise them at least to $23 per ton. Even on longer routes, like the transportation of 6,500 tons of wheat from Reni to Ravenna, the rates remain low, around $26 per ton. Overall, the Black Sea market remains at a low level, with no significant changes in the near future. Shipowners continue to face difficulties in trying to increase freight rates, and forecasts for growth remain cautious.
In the Mediterranean Sea, the freight market is also experiencing difficulties due to low activity and a lack of cargoes. Shipowners are not able to raise rates significantly. Carriage of 4,000 tons of steel from Jereke to Durres is negotiated at a rate of about $10 per ton, equivalent to $1.7k per day. The carriage of 2,500 tons of copper cathodes from Huelva to Salerno has been chartered at a rate of $28 per ton, generating revenue of about $3k per day. These low rates reflect the general weakness of the market. The fertilizer segment is also facing pressure due to excess tonnage. Shipowners are forced to accept low rates to fill their vessels. The outlook for the Mediterranean market remains subdued, and further rate increases are unlikely.
The Azov Sea freight market is also under pressure, despite signs of activity. The main problem is excessive tonnage, which does not allow raising rates significantly. Despite slight growth in demand for grain transportation, rates remain low. For example, the transportation of 3,000 tons of grain from Rostov to Marmara is discussed at $22-23 per ton, which is equivalent to $1.2-1.4 thousand per day. This level of rate does not cover shipowners’ operating costs. Demand for coal transportation also remains stable, but rates continue to be low. For example, the transportation of 3,000 tons of coal from Rostov to TBS is priced at $19-20 per ton, which does not provide significant income for shipowners. Forecasts for the Azov Sea remain disappointing, and it is unlikely that market conditions will significantly improve in the coming weeks.
