News of the freight market as of 28.10.2024

Freight market activity in the Black Sea started to decrease. Earlier in the first half of October there was growth in rates. Many Charterers took a wait-and-see attitude. High demands of shipowners limit further growth of prices. Grain exports, however, remain active, especially in the direction from Ukraine. This supports moderately positive market sentiment. The gap between Charterers and shipowners’ rates for Ukrainian grains is widening. For example, rates for corn transportation to Turkey remain below shipowners’ expectations. This complicates conclusion of new contracts. It is expected that current level of rates will remain in the coming weeks or slightly decrease. Demand for grain cargo transportation is likely to slow down. Charterers adhere to conservative sentiments amid low activity on the market.

In the Mediterranean, the freight market also remains difficult for shipowners. Steel transportation volumes have slightly increased, but grain and fertilizers remain the main cargoes. These cargoes are poorly represented on the market. This prevents us from maintaining stable rates. Deals for steel shipments have been concluded, but low demand for other cargoes has a negative impact on the market. Fertilizer segment is particularly down after the recent event in Greece. Charterers are keeping rates for light tonnage vessels from increasing. Rates are expected to remain at current levels in the coming weeks. Weak demand for main cargoes and low activity in the Mediterranean do not provide preconditions for rate increase. Unless new applications for fertilizer or grain transportation appear on the market, rates will remain stable or decrease gradually.

River-sea market in the Azov Sea remains stable. Supply of vessels for late October and early November dates is limited. Deterioration of weather conditions also affects the market and adds uncertainty. Charterers offer relatively low rates for grain cargo transportation. In particular, rates for wheat transportation from Rostov to Turkey remain low, which limits shipowners’ opportunities. Coal transportation in the region shows a slight recovery, but most Charterers continue to insist on reduced rates for shipments to TBS and other Turkish ports. Rates will remain at current levels in the coming weeks. Local fluctuations are possible due to weather conditions. A slight strengthening is expected with increased activity in the grain segment.