On the 29th week the increasing of freight rates has stopped for a while.
Drastically increased freight rates in Azov sea region has reached the level of USD 18-19 PMT for shipment of 3000 mts of wheat from Azov to Marmara sea ports. Main part of current shipments are related to the fulfilment of earlier conracts, which were impossible to be done before due to export restrictions. With regard to new harvest shipments, there has not been much activity so far and most of the participants are waiting for the market behavior in August.
In the Caspian Sea region, freight rates are decreasing on this week and a shipment of 3000 mts of corn from Astrakhan to Northern Iranian Ports is already on the USD 19 level. Trading activity on the market is still quite low, participants are waiting for the results of a new crop. A tender for the purchase of large amounts of corn, barley and soya beans should be held in Iran on this week. These shipments should have a positive effect on the freight market of the Caspian Sea region.
Regarding trade with European countries, it still remain in limbo, especially the coal and steel trade. Currently, there are few shipments in the Baltic market, but many market participants predict a good grain trade to Europe in August-September.
On the deep sea market there is an active trade in the Persian Gulf and India. A positive trend in freight rates has been maintained in this region for the past month. With the gradual opening of factories there, a number of coal tenders were reopened for India and Pakistan.