Freight rates from the Black Sea ports are decreasing, and those from the Danube ports are increasing

Constant attacks by the Russians on the Danube ports and the lowering of the water level at the mouth of the Danube due to dry weather have led to an increase in the cost of logistics to and from the Danube ports.

During Friday's drone attack, a granary was damaged and 9 trucks were burned in Izmail district. Due to constant attacks and damage to cars in ports or parking lots, drivers refuse to go to the Danube ports, so the cost of grain delivery there from central Ukraine has risen to $50-55/ton.

According to the company Atria Brokers, due to bad weather, the lowering of the water level in the Danube and the mini-vessel undermining near the mouth of the Bystra, the number of vessels waiting to enter the Danube ports has increased from 50 to 130. Considering the throughput capacity of about 5 vessels/day downtime increased to 15 days. This is equivalent to losses for traders in the amount of 13-15 $/t, due to which they are forced to lower purchase prices.

"Freight rates for the transportation of grain by fire from the Danube ports have increased for most destinations, except for Italy and Spain, where they have decreased. In the first half of the week, weather conditions made it difficult to navigate in the mouths of Sulina and Bystra, which led to the accumulation of vessels, but in the second half of the week, the situation improved and the queue began to shorten," reports Atria Brokers.

Freight rates for the transportation of 6,000 tons of corn by fire from the ports of Reni and Ismail to Crete increased by $5/t to $61-63/t, to the east coast of Greece — by $4/t to $57-59/t, to Marmara — by $4/t to $55/t, to the Eastern Mediterranean — by $2/t to $65-67/t.

Rates for transportation of granulated and non-granulated sunflower meal by burners from Danube ports remained unchanged at $60-65/t to Marmara, $82-83/t to the east coast of Italy, $90-95/t to Spain.

The rates for the transportation of corn by panamax from the ports of Odesa, Pivdenny and Chornomorsk to China decreased from $90-100/t to $70/t, to the Mediterranean coast of Spain — to $51-54/t, and for the transportation of corn by handysizes to the eastern Mediterranean. i - up to 60 $/t, to the east coast of Italy and Israel - up to 60-62 $/t, to the Mediterranean coast of Spain - up to 65-67 $/t.

Traders will try to more actively ship grain through the Black Sea ports, as the cost of delivery to them is lower than to the Danube ports, and freight rates are gradually decreasing.