On the 46th week freight rates in Black-Azov sea region slightly decreased, comparing with the last week, therethrough, summing up the tendency in the drop of freight rates, which has been happening from the end of October. For example. Freight rate for 3000 MT of wheat from Azov sea to Marmara will be around 27 USD PMT. In spite of lowering the import tax in Turkey down to 0%, we cannot trace a big increase in sales contracts, which is commonly explained by high purchasing prices for grain products. At the same time, the number of shipments to Italy and Spain is going up.

As we analyze Baltic sea region, it is fair to say, that short sea rates are having an increase during this week. First of all. This can be explained by the elevation of bunker prices and also by the lack od spot/promt vessel positions, as most share of the fleet is gone under the contracts until the end of this month. Secondly, a few of the owners are tight up with contract responsibilities for permanent shipments and that’s why they do not want to risk is and give their fleet. Moreover, most of the owners are forecasting freight rates growth as December is going to bring bad weather, ice conditions and pricy PDAs.

On the deep-sea market in Baltic sea, we can trace a small drop because of a lot of handy/ supra vessels opening at the same time in ARAG range. For instance, the time-cherter equivalent for supramax from Saint-Petersburg to Turkey was about 19 000 USD PDPR. We can also note, that most od November shipments are already fixed and Charterers only have promt December contracts, which may lead for ships losing money, waiting for the suitable L/C or Terminals moving dates in order for Charters to catch the best option.
As for Baltic Dry Index, it keeps dropping its positions during this week together with time charter equivalents for all vessels from handy to capes for most of the directions.

On the current week in Caspian regions, we cannot see any activity in trading. For the time being, the market isn’t going through its sunniest days, because of the lack of cargoes and low freight rates. For example, freight rate from Astrakhan to Iran for 3000 MT of wheat is around 21 USD PMT and 35 USD PMT for 3000 MT from Volgograd to NIP.

The flow of the fertilizers from Turkmenbashi to Black sea is still stable, and owners are preforming their last voyages in order to spend the winter. Also, this week Iran declared a new tender for buying corn and barley. Fingers crossed, it will improve the situation and increase the amount of export cargoes in Caspian Sea.

As the navigations is about to close in Russian rivers a lot of the owners are looking for the cargoes from Saratov/Samara/Tolyatti to Rostov in order to spend the winter there.

Furthermore, pls kindly pay attention, that from the 15th of February 2021 until the end of June Russian Federation will impose a quota for wheat, barley, corn and rye for 15 million tones. As it was this year, this may also negatively reflect on the market in Black -Azov region. However, we can note, that the quota will be doubled comparing with 2020.