News of the freight market as of 27.05.2024

The market of small tonnage transportation in the Black Sea continues to experience difficulties, showing no signs of improvement before the start of the new grain season in July. At the moment more than 350 vessels remain unloaded, including more than 200 vessels with a capacity of 3-6 thousand tons. Freight rates in the Black Sea decreased by $0.5–1.5/t over the past week.
Transportation of 6-7 thousand tons of corn from Odessa or Chernomorsk to Lebanon is negotiated at $20–21/t, bringing an average of $1.2 thousand/day to TCE. A deal to carry 7 thousand tons of corn from Odessa to Larnaca was negotiated at $20/t, equivalent to $2–2.2 thousand per day. It is expected that there will be no activity or freight rate growth in the nearest month. Demand for fertilizers and a slight recovery in demand for square billets in Turkey will not be able to compensate unfavorable conditions on the grain market.

The situation on the market of light-tonnage transportation in the Mediterranean Sea remains difficult. The number of cargo offers is minimal and insufficient to support the market. The excessive number of available vessels is putting pressure on rates. The transportation of 3,500 tons of steel from Aliaga to Casablanca was chartered at $35/t, indicating high competition among shipowners. 14,000 tons of steel is being transported from Aliaga to Ravenna at a rate of about $20/t. Active demand for some cargoes, such as fertilizers and metal, may support the market, but overall cargo supply remains low. All this will continue to put pressure on freight rates.

The Azov Sea market has stabilized recently but remains oversaturated with vessel offers. Average freight rates remained almost unchanged during the week. Wheat and coal transportation deals confirm continued pressure on rates. For example, the transportation of 3,000 tons of wheat from Azov/Rostov to the Marmara Sea was concluded at $31-32/t, which is equivalent to $1.9-2 thousand/day in TCE. Transportation of 3,000 tons of coal from Rostov to Iskenderun was discussed at $50/t. Nevertheless, possible increase in demand for grain and coal may slightly improve the situation for Ship Owners in the coming weeks.


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