On the 18th week in the Azov sea region freight rates are mostly maintained at last week’s level. Thus, the rate for the shipment of 3,000 tons of wheat from Azov to Marmara sea ports remains at the level of USD 18 pmt. Despite the continuation of the lockdown in Turkey and the complication of the economic situation in the country, the flow of cargoes to this direction remains stable, which allows to maintain the current level of freight rates.
In addition, there is a large number of cargoes to Italy destination, in particular to the ports of its eastern coast. The cargoes shipped to the country include corn, wheat, beet pulp and sunflower husk.
At the same time, shipments from the river ports are gradually gaining momentum. Many charterers have already signed contracts to ship grains to Italy and Greece from the ports of the Middle Volga. It is also worth noting the increase in cabotage shipments of grain cargoes to Kavkaz, Rostov and Astrakhan.
As for Baltic short sea market, there has been a slight drop in rates for shipments within the Baltic Sea, including the Danish Straits area. Shipowners are especially interested in cargoes to Sweden and South Denmark, as there is a large flow of timber from there. Ports in the UK and Ireland remain an undesirable destination with severe storms leading to longer voyages and congestions. There are a large number of vessels opening in the Continent. Many of them are in search of return cargoes, but at the moment there are very few of them in ARAG, and those that exist require rates below market. That is why many shipowners prefer to return to the Baltic in ballast for more attractive cargo and good rates.
The deep sea market in the Black Sea region is experiencing high rates similar to the previous week level. Many shipowners are in no hurry to lower rates, even given the small amount of cargo available. The most striking destination for ships from Handy to Panamax at the moment is Asia, since there is a large amount of cargo going to China from Russian Far East and the United States, which significantly increases the time-charter equivalent rates. For example, in the Black Sea for Panamax-type ships going to India / China, the rate is approximately $ 20-21 thousand, when for cargo inside the Pacific Ocean, shipowners receive $ 27-29 thousand.