48 week: Russian River, Azov Sea, Caspian Sea; Coaster shipments
The Azov market activity remained unchanged on the 48th week. Rates on the basis of the voyage from Rostov to Marmara were at the level of USD 23 per ton of wheat. Owners, for their part, are trying to raise the market by offering equally inflated rates. Despite the fact that Owners are ready to discuss almost any cargo, negotiations are proceeding slowly; there are not much fixed voyages, and there is still enough open fleet. Charterers who have contracts to ship in December see no grounds for the market to grow: it is rumored that demand from the side of buyers is low, despite declining purchase prices.
The Azov market is likely to remain at the same level on the 49th week. Bad weather, which is expected in the region, will give time to “guard” own interests for rates, so the 49th week will be key in forming the market level for December.
The Black Sea coasters market is on standby. November proved to be quite active, both in the volume of shipments from the region’s deep-water ports, and in regard to high freight rates level. There are not much new parcels with laycan on December dates. Namely, prices for grain raw materials from Ukraine are quite high, according to the results of the last GASC tender. On the Ukrainian domestic market, producers are in no hurry to reduce prices, which does not help Traders to fulfill their programs. The domestic market is considered as a serious alternative to exports; the rest of the year is expected to be quiet.
Russian wheat for delivery in January was the most competitive in accordance with the results of the GASC tender. Shipments from Novorossiysk and Taman won on FOB basis. Perhaps two more parcels will be shipped from the Kavkaz roads, but they also have an option for Novorossiysk and Taman. In this regard, there is expected the reduction of the Kavkaz roads transshipment program in January. The freight market continues working on spot/prompt.