On the 37th week in the Azov sea region the freight rates remain on the same level of USD 22-23 PMT for the shipment of wheat cargo from Azov to Marmara sea ports. Most shipowners prefer to work short voyages to not miss good freight if trend towards an improvement on the freight market in the Azov sea will continue. For long-distance voyages, for example, to Mersin or Famagusta, rates already reach the level of USD 37-38 PMT.
The situation is even more favorable for owners with run flag fleet, who now prefer to consider only cargo from river ports in order to get the maximum benefit from river navigation. Many shipowners prefer to search for cargo from the Azov and Black Seas to the ports of the Caspian Sea, as the high demand for fleet for shipments of urea from Turkmenistan allows them to make profitable voyages in both directions.
In the Caspian region, the situation of the past weeks remains, market participants are still waiting for the start of active trade and an increase in the number of shipments to the northern ports of Iran. The freight rate from Astrakhan to Iran is USD 21 pmt for a shipment of 3,000 tons of corn.
However, the fleet is sorely lacking, most shipowners have moored their ships a month in advance and some charterers are forced to send their cargo by rail in order to meet the deadlines.
A high demand for the cabotage fleet still remains, as active shipments from Samara, Saratov, Ulyanovsk to the Caucasus continue. However, there is a lack of open tonnage as many shipowners have already fixed their vessels for September dates. Due to this fact many charterers are forced to send their cargoes by rail to meet the terms of the contracts.
In the Baltic region, there is a significant increase in activity on the short sea freight market. On most destinations, freight rates have increased by USD 1-2. Due to the sharp increase in cargo traffic, many vessels are fixed already for the second half of September, and charterers have difficulties finding spot tonnage at low rates.
The situation on the deep sea market in the Baltic region is unstable. Despite a slight drop in freight rates by the end of the previous week, 37th week showed an increase in freight traffic and an increase in prices for sea transportation. This was especially reflected in the segment of supramax class vessels, which are very few in the region, despite the emerging demand for them. The opposite situation is developing with the Handy class vessels, the demand for which has slightly subsided and the large number of offers of this tonnage has led to a decrease in freight rates.
In the Black and Mediterranean Seas, the situation of the past weeks remains. The number of cargoes is still small, but there are expectations for an improvement in the situation by the end of September, as many market participants are now at the stage of concluding contracts, which can improve the situation in this market segment.