Freight rates in the Azov region did not show any changes over the past week. The market stabilization can largely be attributed to the long holidays; many vessels stuck in the ports of loading due to the increased time of issuing of phytosanitary documents, therefore a significant part of the fleet has accumulated in the Azov ports or at the approaches to them. It is important to note that almost all the tonnage is currently employed, as the contracts were signed in mid-April. There are few spot positions that keep the freight market in a stable state.
Demand for tonnage in the Azov region remains extremely low, the main Turkish importers have already closed their programs and now they are waiting for a significant price reduction, which usually occurs when a new crop enters the market. In addition to the above many of them note that in the current off-season in the Russian market there has been a tendency to shifting processes among the top market players. The point at issue is the sale of the Novorossiysk port to VTB group, as well as access to the international commodity market of major manufacturers who previously sold their goods through a chain of intermediaries.
The freight market in the Caspian region began to collapse due to a serious excess of tonnage supply over demand. The reduction of the number of shipments was strongly influenced by the situation with the difficulties of receiving money from Iran. Many Traders have suspended their activities due to the lack of payment for the goods by importers. The regularity of shipments could be supported by large players, but in view of the current situation, they reduce freight levels with each new shipment.