21 week: Russian River, Azov / Black Sea, Caspian; Coaster shipments
As expected last time, the rates decline had stopped. Nowadays market participants note the freight rates have hit the bottom and further decrease is unlikely.
The average rate basis voyage of the Rostov-Marmara amount USD 16 pmt on the week 21.
Business activity of the Turkish Importers is still low owing to the devaluation of national currency. It led to the suspension of trading with Turkey and grain export reorientation to other countries, such as Syria and Lebanon, Israel and Greece. Additionally Turkey is already preparing for the major Muslim holiday – Ramazan, which will be held from June 15 to 17. It is assumed that the revival of commerce with the Turkey Republic will begin with the high grain season.
Due to small tonnage demand in the Azov region, the voyages from the river ports are the most popular on the market now, especially hauls from the Middle Volga ports to Iran and to the roads of the Kavkaz port. Such a situation supports the steady freight level in the Caspian basin. At the same time, the falling rates from Astrakhan could appear in the near future. A hefty increase in the tonnage supply for voyages ex-Astrakhan, which is a better deal for Ship Owners because of the reduction in the quantity of cargo in Aktau and Makhachkala, will inevitably put pressure on freight rates. In this context workable freight level for voyage from Astrakhan to Iran reached USD 30 pmt.