22/01/2020

On the 4th week freight rates at Azov-Black Sea region continue to fall. The freight rate for transporting 3000 mts of wheat from Azov to the ports of the Marmara Sea is $18 per ton.

The price of cargo on the local market has grown significantly over the past few days, which does not allow traders to buy out the volume of cargo by acceptable price. The decreasing of freight rate happens because of the small quantities of cargoes on the market, the consequence of this is a large amount of spot vessels.

Some exporters, who have gathered a shipload, prefer to sell cargo on the local market or to sell overpriced on FOB basis, because supply on the same positions on CIF basis is the same as demand on FOB basis.

It is an active trading in the Caspian Sea region. In Makhachkala and Aktau port there are a large concentration of the fleet, that is why schedule of loading is shifting and exporters go on demurrage. At the same time in Astrakhan port there are a small amount of cargoes and low demand for the vessels. Freight rates from Astrakhan port to NIP decreased to 32 usd pmt. It is much lower freight rate than in the same period of last year.