37 week: Russian River, Azov Sea, Caspian Sea; Coaster shipments
There was a fleet deficit in the Azov region on week 37. During prolonged period of rate reduction over the past few weeks Ship Owners preferred to conclude contracts on remote destinations due to these conventions are more profitable for them. 
For that reason a significant part of the tonnage hasn’t yet returned to the Azov basin. Thus, owing to high demand for shipments to Turkey and the lack of spot vessels, rates for voyages to the Turkish Black Sea cost began to grow. Nowadays workable freight level for voyage ex Rostov to Marmara reached USD 27 pmt on week 36. This is 2 USD more than previous week.
On September 13, the Captain of the Yeisk port released a directive on changing the depths and drafts on the approach channel and the water area of the seaport. Now the maximum allowable ships draft for passing in the channel shouldn’t exceed 4 meters (earlier 4.8 m). Charterers, who dispatch the grain from this port, have already noticed a growth of rates due to a declining number of vessels. The reason is that Owners of sea-going tonnage, working from Yeisk under incomplete loading, will not be able to put into the Yeisk water area as a new depth is small for them. Thus, actual adjustments led to an increase in freight level.
In the context of frequent complaints about unsatisfactory grain quality on the part of Importers, the Federal Service for Veterinary and Phytosanitary Surveillance tightened requirements for wheat exported from Russia. Today it’s necessary to provide additional quality certificates confirming the inspections were passed for countries such as Egypt, Indonesia, Sudan and Israel. The researches of wheat take from 5 to 14 days, and the vessels will not be dispatched without such documents. Due to prolonged phytosanitary inspections, the deadlines of contracts will be missed resulting in extra costs. A jump in rates is expected for hauls to the road of the Kavkaz port in the near future. A sharp increase of fleet supply in the segment of direct shipments from the Azov Sea and the Volga river ports will push freight on such hauls downward, and to the Kavkaz port from the river, conversely, upward. The toughening requirements will become a serious problem for both top Russian Traders, cooperating with difficult countries, and for other market participants.
Despite the fact that the farmers have already started harvesting corn in the Krasnodar territory, the Saratov region and Tatarstan, the parcels of new yield don’t yet carry to the warehouses. The barley is still dominating commodity in the Caspian region. All elevators beside Volgograd have already discharged the grain of last year and now are waiting for the new corn. In this regard, the Charterers from Middle Volga region such as Samara, Kazan, Ulyanovsk and Chistopol were the most active last week. Therefore, the expansion of demand for shipments from the river, the rates reached USD 55 pmt of barley basis Samara – Iran.