On the 12th week, freight rates are slowly but surely going down in the Azov-Black Sea region. Thus, the rate for a shipment of 3,000 tons of wheat from Azov to Marmara Sea ports this week is at the level of $60 per ton. The decline continues due to low demand for Russian grain from Turkish buyers, which is due, among other reasons, to the extension of the grain deal for the export of grain from Ukrainian ports until May 18th.
It is worth noting that some charterers point to the interest of Turkish partners in the purchase of Russian grain with delivery dates at the end of May in case the deal is not extended further. Under these circumstances, more and more open tonnage appears in the Azov Sea, which affects the fall in rates. The export fee on wheat from the Russian Federation from March 22th will decrease very slightly, to 5,327.9 rubles from 5,344 rubles, while the tax on barley will increase to 3,298.2 rubles, on corn – to 2,646.9 rubles, which also does not improve the prospects for the sale of Russian grains in the near future.
Most market players believe that in the medium term, the trend towards a drop in freight will continue. In addition, charterers are beginning to calculate shipments from Russian river ports. Formally, navigation should open from April 1, but favorable weather conditions may lead to its opening at the end of the current week.