Freight Report Week 33

Freight Report Week 33

In the Azov-Don River area, as well as in the Volga-Caspian region, most part of the fleet is already employed on consecutive voyages or under long-term contracts. This is due to the fact that, keeping in mind growing freight rates in the region, Charterers are trying to extend the period of working at the current level for as long as possible, especially when it comes to short voyages. At the moment, freight rates let Ship Owners perform significantly higher than the voyage self-costs, therefore stable and continuous employment with familiar, reliable Charterers is more preferable for them than work on the spot market.

In the light of forthcoming Kurban Bayrami, Turkish Owners are now zealously seeking long voyages in order to avoid, first of all, vessel idling at discharge ports and also to provide themselves with a celebration free from day-to-day fleet-related concerns. Turkish Importers likewise are not keen on concluding new contracts before the holidays. As the result, we are observing a slight decline in market activity, still with the promise of improvement starting from week 36.

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

Traders have different opinions regarding quality of crop in North Europe. So part of them is saying, that quality of grain this year will be if not great, then at least not worse than in previous years. Still, the prevailing opinion declares reduction in the quality. All the Traders are solidary only in that fact, that crop will be harvested latter, then usually.
If gossip about growth of percent of coarse grains in Baltic States crop will come true it will reflect on the level of corn sales in European countries, decreasing it.
Coal Traders are trying to execute their shipments before grain parcels will start to emerge in a region. They hope to do it at first dates of September. Meanwhile main cargoes on the market are still inert materials and pellets.

Anticipating freight level increase in September those Ship-owners, who work inside the region, are showing less interest for fixing their fleet for several voyages ahead, trying to increase quantity of spot tonnage for preliminary grain season dates.