Freight rates from Black Sea and Danube ports remain low

On the Black Sea market, no significant increase in the cost of grain transportation from Ukraine has yet been observed. Cargo/tonnage imbalance persists in all market segments, allowing charterers to dictate terms. The demand for Panamaxes and lighters remains stable, while the demand for handysizes and barges has decreased, so their owners will be forced to lower rates again, UZA reports with reference to ASAP.

 

Thus, freight rates for panamax transportation of corn and wheat from the deep-sea ports of Odessa to southern China and Bangladesh remained at the level of $50-52/t, and to southern Vietnam - at the level of $46-47/t.

 

At the same time, the freight rates of handysizes with corn from the deep-sea ports of Odessa to the eastern Mediterranean during the week decreased by $2/t to $18-20/t, to the east coast of Italy – by $2/t to $20-22/t, to Spain – by $1/t to $22-24/t, Tunisia – by $1/t to $23-25/t.

 

The freight cost of corn kernels from the Ukrainian ports of the Danube to Marmara remained at the level of $17-19/t, to eastern Greece – at the level of $20-21/t, to the eastern Mediterranean – within $22-24/t, Israel - $29-30/t, the east coast of Italy - $26-28/t, Spain - $28-30/t.

 

At the same time, the cost of barge freight is decreasing due to the small number of orders for transportation from the Danube ports of Ukraine. Thus, rates for the transportation of corn from Reni or Izmail to Constanta fell by €1/t to €10/t, and for the transportation of sunflowers to Ruse or Silistra – by €2/t to €16/t.