On the 3rd week freight rates continue to increase in the Azov Sea region for all the shipments’ directions. Thus, contracts for the shipment of 3,000 mtons of wheat from Azov to Marmara Sea ports are concluded at the level of USD 40 pmt. The tendency to increase rates is explained by the shortage of spot fleet caused by adverse weather conditions in the Black Sea. In addition, due to the approaching of the introduction of quotas for the export of wheat and corn, charterers are trying to conclude and execute as many contracts as possible before mid-February. At the same time, it is worth noting that shipments of less popular crops, such as bran, safflower, beet pulp or peas, are being carried out quite actively. Turkish warehouses are still overflowed by cargoes, so charterers are more focused on Greece, Italy and Egypt buyers.
In the Caspian region the situation remains stable, freight rates are at the last week level. The water level in Astrakhan is still low, which prevents shipowners from taking cargo up to fcc. Grain shipments are becoming significantly less in the market, which may lead to a drop in freight rates in the coming weeks.
In the Baltic, on the contrary, freight rates show a decrease. There are significantly fewer companies wishing to sign up for a voyage to England/Ireland, since it is difficult to find a back cargo and it is expensive to make a ballast passage.
There are a lot of spot positions open in the southern and western Baltic. Many European shipowners are running out of their current contracts. The main demand from charterers is for small-tonnage vessels up to 4000 mt.