21 week: Russian River, Azov Sea, Caspian Sea; Coaster shipments
Will the grain regain its status as a formative factor on the freight market? Most likely, it will. According to the results of the past state tenders for the purchase of grain for shipment in August, it is safe to say that exporting countries see themselves quite active in the new season. The victory of the Romanian grain suggests that a significant part of cargo from Russia will be shipped on market terms in smaller parcels to the Mediterranean Sea region, and in large parcels to long-distance destinations.
Many players expect that the Azov market will be high in the new season. Despite the fact that Traders are now keeping an eye on how the new mechanism will work in deed, the forecast of the commodity market seems optimistic. In the context of high-intensity dynamics of factors fluctuations, which affect the pricing for shippers and receivers, it becomes quite convenient to work with small volumes; this means that the demand for coasters from the Azov Sea and river ports will be strong.
The tonnage demand for transportation of non-grain cargo does not decrease. Besides, some Owners are negotiating for work on roads transshipment under large programs. Based on this, it is safe to say that the rates for transit voyages through the Volga-Don Canal, for general cargo and export of Caspian fertilizers will increase significantly.
In the wake of the ongoing market growth all-round, there is observed renewed interest in time-charter stories, especially for periods. Those Owners, who prefer not to hire out their fleet, now work in spot. This results a certain illusion of tonnage availability on the market: offered vessels are quickly fixed, which is particularly noticeable via example of the Mediterranean and Black seas. Charterers, who usually fix vessels a month before laycan, now have understandable difficulties in searching for tonnage: on a rapidly growing market, Owners either do not consider such offers, or make their imagination go wild in rates.