Freight rates in the Azov region are still at annual minimum, the main reason for this is the unwillingness of sellers to release the remaining goods at the proposed prices. According to the data of market insiders, sellers are guided by world grain prices, while buyers take into account the current situation in the Azov-Black Sea region and underestimate the value at the forefront of the new crop consequently. As a result, few deals are made, and this fact inhibits the growth of rates. At the same time, the freight level does not decrease, since the number of spot tonnage is strongly influenced by holidays in Turkey, where a significant part of the fleet is delayed on discharge.
Turkey imposes a protective import duty on sunflower seeds from 20th of June, which causes a surge in activity among Exporters of this type of product. High stowage factor makes the shipment of these goods independent of the canal draft, thereby attracting Owners of high cubic vessels.
Many Traders agree that the Caspian market is monopolized, and small companies are displaced as a matter of course. The reason for this is lack of the possibility of long-term lending to their customers, and the issue of respite on payment is of fundamental importance because of problems in mutual settlements with Iranian counterparts. Keeping the current game play in the region, we will soon be able to see a more stable Caspian market where a small number of players will dictate pricing.
Low grain season directly affects Charterers of General cargo. Rates for back hauls with equipment from the Adriatic Sea are reducing. Despite the low-level market, shippers expecting to send their equipment to the Caspian Sea as part cargo may face some difficulties. Considering the weak freight flow, there are not many options for a combination on the market. Therefore, Charterers have to either wait or, if taking delivery time as a matter of priority, to pay for a voyage as a sole cargo.