Freight Report Week 31

Freight Report Week 31

After it became clear, that building of bridge in the Straight of Kerch will not make any serious time loses for fleet, Shipowners are coming back to short voyages bit by bit. For this moment short voyages with high loading/discharging rates are in priority. Owners are demanding extra payment for long voyages and for voyages with potential delays in order to compensate foregone profit in the light of increasing market. This week growth dynamics has slowed down: from USD 3-4 to USD 1-2 pmt and reached the USD 30 level to TBS. Nevertheless, Charterers are fixing tonnage for several shipments in order to ensure timely shipment of needed volumes.

Bosphorus passage was restricted due to search and rescue operations, which caused accumulation of tonnage on both sides of strait and delayed vessel arrival to the ports of loading, as a result. Many Charterers, being at the risk of running contracts canceling, decided to increase freight rates for spot tonnage. Victory was on the side of Shipowners who risked to fix their tonnage for short voyages in the uncertain situation of shipping at the Kerch Strait, as it made them possible to get their money on the increasing market.

Continuous freight growth is noted in the Caspian basin, it is connected with fleet shortage in the region: Owners are more interested in lihterage on Kavkaz roads. There seem to be no reasons to wait for freight level decreasing, as far as cargo orders’ diversity is growing and the quantity of spot tonnage in shrinking. As per information received from the river elevators, most of storage silos are full with cargo, especially those which are dislocated on the river Volga.

Region: Baltic / ARAG
Trade: Coaster shipments, Handy-size

Number of spot/prompt tonnage in the Baltic/Continent region has grown because of noticeable decreasing of cargo quantity. The reason of such a low cargo traffic is grain season which have not started in Baltic States yet. Most of Owners working round Europe preferred to move their tonnage to the South regions. In the light of started grain season and increased freight rates voyages in Black and Mediterranean seas are looking more attractive for Shipowners then round Europe voyages.

Pellets, inert materials and coaster parcels of scrap are rising to the forefront of available cargo orders on the market.

Nevertheless, Traders are talking about cargo traffic increase in the nearest future and freight rate growth as a result. Some revival is noted among the coal Traders in the light of beginning of their usual season, albeit mostly via indicative requests for the future. Charterers are worried because of the problems with coal deliveries to the Baltic States ports by railway means, which makes shipment programs uncertain.