Shipments from the ports of the Azov region have been largely suspended since the end of last week. As of July 10, vessel traffic through the Azov–Don Canal and the Kerch Strait has been restricted following an increase in attacks on the fleet. As a result, many charterers are considering rerouting export cargoes through the remaining operational Black Sea ports. However, heavily congested road and rail infrastructure is significantly limiting cargo deliveries to these ports. The situation is further aggravated by a shortage of available transshipment capacity amid a sharp increase in demand.
It is also worth noting that, under the current circumstances, Russia’s export duties on wheat, barley, and corn will return to zero as of July 15.
The Baltic market continues to experience very low trading activity. However, another increase in bunker fuel prices has contributed to a slight rise in freight rates.