On the 14th week the drop in freight rates in the Azov-Black Sea region continues. Thus, the rate for the shipment of 3,000 tons of wheat from the Azov Sea to the ports of the Marmara Sea dropped to $ 17 per ton. Many shippers note that there is less and less cargo left in the fields and that prices for it are not falling, despite the sharp decline in demand for Russian wheat on the world market. The economic situation in Turkey remains quite difficult, so for the time being, charterers mostly focus on other destinations, such as Israel, Lebanon, Greece or Italy. In addition, it should be noted that this week there are more and more shipments to Libya and Syria. Many Russian-flagged shipowners prefer to take cargo to the ports of the Caspian Sea in order to take in early May back cargo from Turkmenistan, Azerbaijan, as well as from the ports of the Russian river, from where many charterers plan to ship grain and fertilizers cargoes.
There is little activity in deep sea shipments in the Black Sea region. This is due to the fact that most of the charterers bought their products at the prices that dropped last week, and are now expecting a decrease in the freight price in order to get more profit. The main cargoes that are currently in transit are government purchases, such as wheat to Tunisia and Libya, or part of large contracts signed last season. There is a large number of contracts already signed at the end of May and throughout June, mainly for fertilizers and grain cargo. This was facilitated by a downward trend in commodity prices, as well as forecasts for a decrease in freight.
On the 14th week, the short sea market in the Baltic region has seen a slight increase in freight rates for the most directions. Considering the end of Easter holidays, more vessel positions appear on the market for April dates. However, the tonnage in the Baltic is still not enough because a lot of vessels of European shipowners are opening on the Continent and in the Mediterranean Sea. Meanwhile, queues are observed in the ports of Great Britain and ARAG due to the worsening weather conditions, which leads to an increase in the duration of voyages. Because of this situation, it is almost impossible for shipowners to give their fleet for cargo in spot / prompt positions.