22/07/2021

On the 29th week we observe a fairly rapid increase in freight rates in the Azov-Black Sea region. Thus, the rate for a shipment of 3,000 tons of wheat from Azov to the ports of the Marmara Sea this week is at the level of $ 36 per ton. At the same time, it is worth noting that the offers of shipowners are growing up and sometimes reach $ 40 per ton.

Such an increase in rates can be explained by a large number of cargoes on the market, as well as the reluctance of shipowners to work their vessels in advance due to the constant changes in the market in their favor.
In addition, due to the official holidays in Turkey, some vessels are delayed on discharging in Turkish ports, which greatly limits the number of offers. It should also be said that most shipowners prefer short voyages, refusing such destinations as Egypt, Greece or Italy.

As for the sale contracts, the export fee on wheat from July 21 will decrease to $35.2 per ton against $39.3 per ton, which is valid until July 20, according to the Ministry of Agriculture of the Russian Federation. The tax on barley will increase to $37.5 ($36.9) per ton, whilst the tax on corn will decrease to $51.6 ($52.2) per ton. Under these conditions, shippers can count with more profitable contracts, as a result of which the number of shipments should increase.