Report Freight Week 32

Report Freight Week 32

Grain season goes on, freight rates in Azov region are increasing for usd 1-2 pmt each week. However, this trend may change in the nearest future because of the possible “mirror response” from Turkey, caused by import prohibition for Turkish tomatoes, in case decision about lifting the ban will not be made during the meeting between Turkish and Russian authorities, which will take place at Istanbul on 17-19 of August. Ship Owners follow these developments closely and are trying to undergo as much consecutive voyages as possible while current, rather high, freight rates are in force.

More and more Owners are avoiding cargo orders ex ports of Rostov-on-Don and Azov by the reason of increased water level fluctuation and permissible draft level uncertainty. Freight-wise, the difference between voyages from port of Yeysk and port of Taganrog is coming up to usd 2 pmt.

Low demand for the 5000 DWCC tonnage makes Owners of such fleet more flexible during negotiations. Market participants explain this situation by the fact that Traders do prefer to ship standard 3k parcels as a trial consignment at the beginning of grain season

Five-day celebration of Kurban Bairam starts on 31 of August in Muslim countries. Ship Owners are trying to fix long voyages primarily in order to avoid losses due to vessel’s prolonged idle time at Turkish ports

Significant accumulation of grains volumes is observed on the river elevators of Volga-Caspian region, shortage of storage facilities has appeared. Charterers are forced to increase freight rates on daily basis, competing each other for opening vessels in the light of the lack of tonnage.

At the end of last week Producers have decreased prices for grains for rub 250-700 pmt in the Volga region. In general prices for 4th class of grain decreased for rub 275 to the level 8100 pmt, for barley – for rub 250, for rye – rub 700. Falling prices for 3rd class grains was not so significant – rub 100, for the level rub 8950 pmt. The record crop and the lack of tonnage are pushing Producers to decrease prices in order to ensure sales of big volumes of products.