The freight rates in Azov area have continued to grow during previous 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 Bayrami and the passage restrictions at Kerch, are now in high demand, adding up to the rates increase.
The Ship Owners in the Azov region once again 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 jobs, Charterers forced to pay some extra for long voyages. Problematic voyages (Egypt or Lebanon, for instance) have become difficult to even negotiate.
According to several Charterers’ opinion, rates for voyages ex Volga ports have reached their peak, therefore further growth has stalled, regardless of the remaining tonnage deficit. At the same time, on the voyages from more northern river ports, the Ship Owners are still able to push the rates up. One reason for it is large volumes of cargo accumulated there, caused by long-timed preference of shorter voyages by local tonnage.