24/11/2021

On the 47th week, a rapid growth of freight rates continues in the Azov-Black Sea region. Thus, contracts for the shipment of 3,000 mts of wheat from Azov to Marmara Sea ports are concluded on average at the level of USD 59 pmt. At the same time, at the beginning of this week, most shipowners asked mid 60s for their vessels. It is worth noting that both charterers and shipowners feel that an endless increase in rates is impossible and are preparing for some decrease. It can be assumed that a certain turning point in the market is beginning to occur due to the extremely unfavorable situation in Turkey, where the lira exchange rate fell sharply earlier this week, breaking another anti-record. As a result, the conclusion of new sales contracts for Turkey has practically stopped.

Given the fact that shipowners mostly consider short voyages till Marmara, this should inevitably affect the freight rates. As for long-distance voyaged, freight rates are even higher here than for Marmara, since almost none of the shipowners is ready to take cargoes to Italy, Egypt, Malta or Mersin. Among other reaons, shipowners are stopped from taking voyaged to Europe by the prospect of getting to the port of unloading for the Christmas holidays.
It is also worth noting that navigation in the Volga-Don Canal closes on November 27, so this week shipowners had to decide in which region they prefer to work in winter.

In the Caspian region, an increase in freight rates is also observed. From Astrakhan, the number of requests has decreased and the main flow of goods comes from the port of Makhachkala. This week, freight rate for 3,000 mts of corn from Makhachkala to the NIP reached $ 35 per ton.

A decrease in freight rates has been observed in the Baltic region. A large number of shipowners seek to relocate their fleet from the continent, but the amount of back cargoes is usually less than for ARAG offers.
On average, 2-3 positions from 2000mt to 11000mt are opened per day, often on spot, which leads to a freight rate decrease. Charterers, taught by bitter experience, still prefer to look for ships in advance, a month in advance.