Rising Panamax Freight Rates from Ukrainian Ports to China with the Onset of the New Season

In the Panamax sector, charterers are compelled to increase freight rates for grain transportation, similar to the barge segment. Meanwhile, there are no significant changes in the coaster and handysize sectors, with rates showing minor fluctuations of +/- $1/ton on specific routes, reports the Ukrainian Grain Association (UGA) citing ASAP.

In the Panamax sector, shipowners are successfully insisting on higher rates due to active demand for barley deliveries in late June and the first half of July. Deteriorating conditions in the Red Sea due to new attacks on vessels also contribute to the rate hikes from shipowners, analysts note.

According to Atria Brokers' freight department, Panamax freight rates for transporting wheat or corn from Ukrainian deep-water ports to southern China have increased by $4/ton to $52-54/ton; rates to southern Vietnam show a similar trend and have reached $50-52/ton. Freight to Bangladesh has risen by $4/ton to $52-54/ton.

In the handysize sector, freight rates have not undergone significant changes and exhibit only minor adjustments. Handysize freight for corn from the deep-water ports of Odesa to the eastern Mediterranean stands at $20/ton. Rates for transporting the same cargo to Spain and the eastern coast of Italy are $23/ton and $22/ton respectively. Freight to Tunisia has risen by $1/ton to $23-25/ton.

Coaster freight rates for corn from Ukrainian Danube ports to Marmara have increased by $1/ton to $16-17/ton. Rates to the eastern coast of Greece remain stable at $19-20/ton.

There are no significant changes regarding the eastern Mediterranean route, with corresponding rates holding steady at $20-22/ton. Meanwhile, rates to Israeli ports have risen by $1/ton to $26-27/ton. Rates to the eastern coast of Italy remain stable at $26-27/ton, while those to Spain have decreased by $1/ton to $28-29/ton.

Freight rates for barges continue to rise due to increased cargo flow from Ukrainian ports. Barge freight for transporting corn from Reni/Izmail to Constanța has increased by €1/ton to €11/ton. Freight rates for sunflower transport from Reni/Izmail to Ruse/Silistra have risen by €2/ton to €17-18/ton.