18 week: Russian River, Azov / Black Sea, Caspian; Coaster shipments

18 week: Russian River, Azov / Black Sea, Caspian; Coaster shipments

Prolonged May weekend during 18-19th weeks, devaluation of the lira, Turkish trade attaché leave of absence and the price rise in the domestic grain market led to the fact that freight rate in the Azov region, as expected at 17 week, continued to decline. Workable rates maintain 18 USD per ton basis voyage ex Rostov to Marmara with wheat. This is 1 USD less than level of the last week.

Due to the continuous currency fluctuations of the Turkish lira, last week lira / USD ratio achieved a year-low – 4,288 per 1 USD, Traders notice decline of import ability of Turkish buyers who carry on executing contracts but avoid new deals until the currency stabilizes.

There is a large amount of spot tonnage in the Azov basin. This situation on the market gives the Charterers additional advantages owing to increased tonnage offer, so they can be picky. However, insignificant number of fixtures was made even in context of falling rates. Market participants connect this with rising prices on the domestic market and the distant grain elevators. The main volumes of grain have already been exported from the closest storages; therefore Traders are forced to incur additional expenses for the carriage of cargo to the loading ports.

Nowadays there is a growing demand for shipments from Volga ports (Kamyshin / Saratov / Samara / Togliatti) among Owners of Russian-flagged tonnage. At current market conditions in Caspian basin voyages from river ports are considered more profitable for Shipowners. Thus, workable freight level for voyage ex Samara to Iran reached 53 USD pmt.

Shipowners, who work ex Azov Sea ports, have recently shown an increased interest for the back-haul voyages. During the high freight market season it was not profitable to lose time on additional port call and loading operations, fleet tried to return as quickly as possible for the main cargo – the grains. Today the intensity of shipments reduces, and such situation can last until the high season (the end of July), therefore Shipowners are more enthusiastic to consider the back-haul, trying to occupy their fleet with any job.