On the 43th week in the Azov sea region freight rates have significantly increased compared to the last few weeks levels. So, the rate for the transportation of one metric ton of wheat from Azov to the Marmara sea ports is already equal to USD 23 and the expectations of shipowners are only growing.
Freight rates growth is explained buy the large number of sunflower seeds shipments from Azov sea to ports of Bulgaria and Turkey.
The freight level for sunflower seeds shipments this week has already reached USD 38-39 pmt bss Azov-Marmara sea ports, which undoubtedly affected the freight rates of deadweight cargo.
The improvement of rates this week should be also affected by the decision of the Turkish government to make customs duty on wheat, barley and corn imports to zero percent until January 1, 2021. Thus, the government is trying to provide the domestic market with the necessary food and feed.
The shipments of wheat and barley cargoes from Russian river to the Black and Caspian Sea ports are actively continuing. Tonnage is still in short supply. A similar situation occurs with cabotage shipments, where shipowners have pre-signed contracts for transportation in order to provide themselves with work until the end of navigation.
In the Caspian region, there is also an improvement on the market. More and more cargoes appear from Astrakhan and Makhachkala to the North Iranian ports and from Turkmenbashi to Black Sea ports. Charterers want to ship their cargoes on Russian inland waterways as soon as possible in order to be in time before navigation closes and to fulfill their contract obligations. Freight rates in the Caspian region this week have risen up to USD 22-23 PMT for the shipment of corn cargo from Astrakhan to NIP.
As for the Baltic region and the deep sea market despite the drop in the Baltic dry index this week, rates for handy / supra / panamax class vessels continue to rise. So 30k wheat shipment from the port of Rostock to Algeria will be already equal to USD 32-33 PMT. Also, on the deep sea market, most shipowners have no desire to go in a voyage on such directions as China, Vietnam, Bangladesh. The reason can be in the fact that in the Atlantic area rates on large vessels are more attractive.
I would also like to note that this week many large shipowners are striving to take vessels on a long time-charter to further profit from one-time voyages due to expectations of the increase in freight rates