Freight Market: Report on Coasters Market in Black & Azov Sea

Summary by Glogos Shipping: The Azov region is experiencing a period of uncertainty. Due to the strengthened ruble and current freight rates level Traders have suspended sales and new contract conclusions. As reported by some Exporters, for normal cargo turnover to recover, either the rates must go approximately 5$ down, or the dollar must stabilize at a level higher than 59 rubles. Since Ship Owners have been forcing Charterers to focus on voyages to the Turkish Black Sea coast, local warehouses at the Port of Samsun with the total storage capacity of 300 000 tonnes cannot receive any more goods, and the market participants has been faced with a problem of slow discharge at this particular port. In order to avoid further demurrages, cargo receivers are relocating their port of delivery to Marmara.

Some Traders are showing confidence that freight rates will decrease soon, expecting a substantial number of vessels to open simultaneously after the long idle time in Turkish ports. Traders in the Azov region are trying to evade CIF sales, preferring to ship their goods on a FOB basis, with a view to reduce risks associated with searching for proper vessels.
The shortage of fleet remains critical in the most remote river ports on the Volga. Since the opening of navigation, voyages there have been relatively rare, which led to an accumulation of significant cargo volumes at river silos. Charterers keep increasing their ideas for freight rates, but this has little impact on the actual amount of shipments.

According to some Exporters, tariffs for railway delivery to sea ports have reached parity with the cost of analogical transportation by water, which reduces the possibility of further rates increase for voyages from river ports.

Report of Fixtures: Glogos_Freight_Report_Week_36 (1)

Source: Glogos
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Report on Coaster Freight Market in Black Sea & Azov

Freight rates in Azov area have continued to firm up in past week, owing to appearance of regular ‘autumn’ cargoes on the market, such as sbpp, sfs meal and corn in addition to usual wheat and barley. The excess of grain parcels accumulated at ports’ silos during the relatively calm week caused by Kurban Eid Holidays and the passage restrictions at Kerch, are now in high demand, adding up to the rates increase. Ship Owners prefer short voyages to TBS above all others. Risks related to idling have disappeared, and while Owners are trying to employ their fleet on short trips, Charterers have to pay some extra money for long voyages. Problematic voyages (Egypt or Lebanon, for instance) have become difficult to even negotiate..(Glogos – Edited)

Overview of Fixtures for Week #35:

Glogos Freight Report – Week #35

 

The New Kerch Bridge: Implications for Shipping & The Grain Trade

Despite international sanctions against the Kremlin, the bridge construction between the Kertch strait has started and the first arch has been built. This bridge will connect Russia and Crimea, will be 19 Km long and should be finished in 2019. The construction of this bridge, is creating important logistical problems for Ukraine. Indeed, navigation for cargoes between the Azov sea and the Black sea has been suspended during certain days at the end of August and this could occasionally continue in September and October.  This situation could also penalize exports since the Azov sea is an important crossing point for Russian grains departing from Rostov on the don. On the long term, the bridge could be a real problem for cargoes because besides being constructed in low water depth, maximal heights is limited at 33 meters. The agricultural ministry is estimating that once the bridge is constructed 33% of Ukrainian cargoes won’t be able to cross. In this context, exporters have already planned to move from the port of Mariupol in Ukraine directly onto the Black sea.

Source: Agritel

US Energy Information Administration (EIA): WORLD OIL TRANSIT CHOKEPOINTS REPORT

World chokepoints for maritime transit of oil are a critical part of global energy security. About 61% of the world’s petroleum and other liquids production moved on maritime routes in 2015. The Strait of Hormuz and the Strait of Malacca are the world’s most important strategic chokepoints by volume of oil transit.

Here is the Full Report in PDF Format (with our thanks to the EIA): wotc

 

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