2018 FIFA World Cup is preparing to establish its own adjustments to the work of Russian Exporters. Thus, the most frustration is the uncertainty associated with the information of close-open time-table of the Azov port boundary during the championship. This results in a delaying in the process of vessels inward formalities and issuing applicable documents from the border guards. Consequently, there will be the accumulation of tonnage on the port roads.
In this context Shipowners will avoid calling Azov during the World Cup, especially on match days and navigation restrictions, due to fear of idleness. In theory, such situation could lead to the freight rates increase, but, considering the current market conditions, many participants assume that Owners of Russian-flagged tonnage will take voyages to Iran to exclude the Azov port from the route. By that time freight rates in the Azov region will be on the annual minimum.
There is a large amount of spot tonnage in the Azov basin on the 19th week. Its Owners wait for the cargo orders and come close to consider virtually any routes. At the same time, Traders recognize they have mostly carried out their export programs. Nowadays Charterers are mainly interested in indications on the beginning of the high grain season (July-August), rather than the current rates for spot tonnage. All these circumstances put pressure on the freight market. Ship Owners had already started working at rate of 12 USD pmt with wheat basis Temryuk-Marmara in the last week. Currently freight level fell to 17 USD pmt basis voyage Rostov – Marmara.
The period of intense rates reduction had begun in the Caspian region. The undercutting on the part of the Iranian-flagged fleet’s Owners takes a heavy toll on market conditions. There is a low cargo supply in the Caspian area but Iranian Ship Owners have exemptions for vessels call to Iranian ports and for that reason can afford offering lower rates on the main Iranian directions. This lead to general freight rates downfall including from the river, as a majority of Charterers and Ship Owners use as a basis rates from Astrakhan when make voyage calculations. As a consequence workable freight level for voyage ex Astrakhan to Iran reached 31 USD pmt with wheat. This is 2 USD less than level of the last week.