On the 3rd week freight rates in the Azov-Black Sea region continue to grow rapidly. Thus, for the shipment of 3,000 tons of wheat from the ports of Azov Sea to the ports of the Marmara Sea shipowners ask for $ 35 per ton. At the same time, every day there is more cargo and fewer spot vessels on the market, which will almost inevitably lead to a further increase in freight. Evidently, such an impact on the market is caused by the approaching deadlines for the introduction of the export fee on wheat.
It is worth noting that at the moment almost all charterers send wheat, postponing the shipment of other grain crops for the second part of February, when the regulation on the export fee will come into force. According to experts, the export of wheat in February would be reduced by 50 per cent. In addition, it is important to note that due to the current situation with the export fees, interest in wheat of Russian origin, and as the consequence the prices for it on the market, have increased significantly. As a result of that, charterers ship this crop not only to Turkey, but also to Egypt, Lebanon, Greece and Spain.
Freight rates are keep increasing in Baltic sea market. First of all, this is caused due to worsen of the weather conditions and strong cold. A lot of owners, without ice class are not willing to call even ice-free ports like Gdansk or Klaipeda, which gives opportunity to ice classed vessels to ask for higher freight rates. Price increase is also influenced by owners, who is finishing their 2020 contracts, which leads to lack of tonnage in Finnish gulf and Gulf of Bothnia. Moreover, there is an active import of grain cargoes from Russian Baltic sea ports, which heats the market and pushes Charterers of coal, metal and fertilizers to postpone their shipments until February, hoping for lower rates and more fleet.
Owners, who have their openings in Baltic or Continent prefer to avoid going to Gibraltar area, because of the lack of attractive cargoes and low freight rate. Furthermore, Turkish owners, whose vessels are opening in Continent are more willing to go back to Black Sea or East Mediterranean, where there are a lot of high paid cargoes, because of active grain flow.
In handy / supramax market there is a 7% growth of time charter equivalent in Black sea, because of the Russian grain export to North Africa countries. This rout is considered profitable for owners, due to presence of back cargoes, like fertilizers or sault.
In the Baltic area, time charter equivalent rates are more then 20 000 USD per day this week because of plenty of cargoes.