On the 24th week, the coasters freight market in the Azov region was characterized by a new trend, which may be cautiously called positive. According to information from traders, in the first days of July, there is expected increasing demand for the fleet to fulfill previously concluded contracts; work on them has stalled after the introduction of restrictions on wheat exports. With this in view, Owners tried to keep their vessels on a short leg (no further than Marmara). Most Owners will continue to use this reasonable, though forced, tactics in the absence of cargo. Taking advantage of low rates, some shippers are trying to fix vessels for several voyages or for time charter starting in July, but Owners do not rush to make deals in advance.
However, freight rates from the Azov Sea ports at the end of June – beginning of July have not yet been formed. Most part of the fleet at the Black and Azov seas is still open in spot. Only niche goods, which do not fall within the quota, appear on the market. Not all Owners are ready to fix on the last days of June, and those who agree give quite different rates. Thus, the rate on the basis of the voyage from Yeisk to Samsun is ranging from USD 11 to USD 18, against the current market’ rate of USD 9-10. With all this taken into account, it could be argued that the common grain program from the Azov ports has not yet been formed, excepting large Charterers. The latter, amid the market volatility, will try to work primarily their own vessels, fixing spot/prompt positions from the market only to avoid losses. It will be possible to determine a more precise market configuration closer to the July dates.
Judging by the indicators on the commodity market, sales of new crop grain at the stock exchange have been suspended; in the time following, in July and August it will be traded in spot/prompt.
The freight market in the Caspian region remains at the same level for the second week in a row. According to Exporters, purchasing prices for grain are very high, and no one wants to work at a loss. The key factor affecting purchasing prices is the US dollar exchange rate, which shows sharp fluctuations. This also has a negative impact on the freight market.