Freight rates for the Sea of Azov and the Black Sea decrease, but the delay in inspections by the Russians increases the losses of Ukrainian exporters

In the second half of the season, trading activity on grain markets traditionally decreases, which leads to lower prices for ship freight and agricultural products. Due to hostilities and blockade of ports by the Russians, the freight cost of ships to Ukrainian ports is 2-3 times higher than to Russian ports, which increases the losses of domestic exporters.

According to the publication USM, the freight rates for shipments by firecrackers decreased for the Black Sea ports - to $35.15/t, for the ports of the Sea of Azov - to $58.01/t, for shipments by handsizes for the Black Sea ports - to $31.7/t t, while the rates for panamax shipments rose to $26.61/t.

Currently, the cost of sending batches of grain is:

• $36/t for sending 25-30 thousand tons of wheat or corn from the ports of Odessa and Chornomorsk to the Eastern Mediterranean,
• $54.5/t for sending 5-6 thousand tons of wheat or corn from Reni to Beirut (Lebanon) or Mersin (Turkey),
• $59.5/t for sending 60-70 thousand tons of corn from the ports of Great Odesa to China.

Last week, the work of the grain corridor was suspended due to the sabotage of the inspection of the vessels by Russian inspectors. It managed to renew, but the export of agricultural products for 10 days in April amounted to only 800,000 tons, while in the same period in March, 1.7 million tons were shipped.

At all platforms, the Russian Federation reminds that the operation of the grain corridor has been extended only until May 17, so traders do not risk chartering vessels for the second half of May, which negatively affects purchase prices.