14/10/2020

On the 42th week the freight rates are still holding at the level of USD 19-20 for the 3k wheat shipment from Azov to Marmara sea ports. However, it is worth noting that on the market is seen an increase in the amount of cargoes, what is likely to lead to an increase in freight rates by next week.

The growth of rates in the Azov region may also be affected by the worsening weather in Azov and Rostov. The idle time of vessels in these ports can lead to a shortage of the fleet and an increase in the level of freight rates.

As for river transportation, as the end of river navigation approaches, the demand for Russian-flagged vessels is growing, which leads to a daily increase in rates. There is still a high demand for cabotage shipments to the ports of Kavkaz and Astrakhan, however, difficulties in finding a suitable fleet remain.

Cargoes from Astrakhan appeared in the Caspian region this week, as well as a fairly large amount of cargo from river ports. Freight rates from river ports to the northern ports of Iran have increased, and rates from Astrakhan are expected to follow them. Also, the exports of soybeans and corn increased. However, the situation on this market has not improved significantly yet.

With the likelihood of a second wave of the pandemic, the Baltic Dry index went down. This also contributed to a slight decline in the time-charter equivalent for handy / supra / ultra vessels in the Baltic and Black Sea regions.

There is also an upward trend in demand for handymax vessels on the Continent and the Baltic. However, not all vessels of this class are ready to sail long distances. Most shipowners want to either stay in the Atlantic or go to the Mediterranean / Black Sea.

It should also be noted that according to the latest indicators, a large flow of wheat shipments in large quantities has recently been going to the Persian Gulf and to the countries of North Africa.