Freight rates for barges from Danube ports have stabilized, while barges continue to rise in price

The cost of freight for barges for transporting grain from Ukrainian ports on the Danube has stabilized, while barge freight continues to rise in price, latifundist reports, citing ASAP Agri.

Reduced demand from charterers is forcing shipowners to lower rates, but the cost of fuel is supported by further increases in bunker fuel prices.

To some extent, freight costs have been affected by the expansion of the war risk zone, which does not cover the territorial waters of Turkey, Bulgaria, Romania and Georgia. The longer routes in the territorial waters of these countries and additional insurance increase the cost of transportation, but this increase is insignificant against the background of high rates.

At the same time, high demand for barge transportation leads to a further increase in transportation rates.

According to Atria Brokers, the cost of transporting a 6,000-ton consignment of corn from Danube ports to Egypt is now about $102/ton, while last week it was at $100-105/ton.