Category Archive Press-room

World Cup Fans May Dent Russia’s Record-Breaking Wheat Season

The World Cup risks putting a dent into Russia’s best-ever season for wheat exports as an influx of soccer fans may slow shipments from one of the country’s major grains ports.

Rostov-on-Don will host five soccer games from June 17 to July 2, raising concerns that shipments will slow due to security measures and rerouting of road traffic. The Don River grain terminals, owned by commodity giants including Cargill Inc. and Bunge Ltd., handle about a quarter of Russia’s outgoing grain cargoes, according to shipping broker Glogos Project.

Russia is exporting more wheat than any other country in 25 years, and is set to cap another record after bumper harvests. Given the high pace of exports, SovEcon last week raised its estimate for total grain shipments for the season ending June. Exports typically tail off toward the end of the season, which will mitigate any slowdown due to the games, said Andrey Sizov Jr., managing director at consultant SovEcon in Moscow.

Officials may divert traffic from a bridge near the Rostov Arena, where “substantial” amounts of grain cross the river en route to the port, according to Semyon Chudakov, executive director at the St. Petersburg-based Glogos Project.

Navigation season – 2018

Dear Sirs,

We are all expecting three upcoming events to affect project cargo delivery during OOG delivery season in 2018. First, the Navigation season-2018 opens as from the 1st of April in Volgograd and 20-th of April in St. Petersburg. Second, regular period of prohibition of trucking and heavyloads through main roads and highways. April in south and central regions, plus some May dates in northern and Siberia territories. Third, FIFA World Cup Russia-2018, starts from 15 June and last till 15 July 2018. Despite above 2 circumstances are regular and foreseen, all forwarders shall take in mind that Russian Minister of transport and authorities imply limitations on transportation by water and by roads during days nearby days of FIFA cup games in main cities: Volgograd, Kazan, Kalinigrad, St.Petersburg, Moscow, Nizhny Novgorod, Rostov on Don, Sochi.

The above limitations shall be taking in mind during planning of delivery of all oog cargoes destined to main industrial regions of European part of Russia, as well as to cargoes shipped via Volgodon channel to Caspian Sea.

Below you can find detailed data.

With best regards
Glogos project.

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The navigation season-2018 opens soon: Federal Agency for Maritime and River Transport had published the dates for operation of navigable hydraulic structures for the period of navigation 2018. The current schedules of the locks are here:
Timelines of locks on the Volga River:
From 1 April to 25 November – the locks of the Volzhskaya water-power plant in Volgograd;
From 7 April to 24 November – the locks of the Saratov water-power plant in Balakovo;
From 22 April to 20 November – the locks of the Zhigulevskaya water-power plant in Togliatti;
From 24 April to 20 November – the locks of Cheboksary water-power plant;
From 24 April to 14 November – the locks of the Uglich water-power plant;
From 25 April to 17 November – the locks of the Rybinskaya water-power plant;
From 25 April to 19 November – the locks of the Nizhny Novgorod water-power plant.

Timelines of navigation on the Don and Volga-Don Shipping Channel:
From 1 April to 27 November – the locks № 1-№15 of the Volga-Don Channel;
From 1 April to 27 November – Nikolaevsky lock on the Don River;
From 1 April to 27 November – Konstantinovsky lock on the Don River;
From 1 April to 27 November – Kochetkovsky lock on the Don River.

Timelines of navigation on the Moscow Channel and the locks on the Moscow River:
From 24 April to 14 November – the locks №1-№10 of the Moscow Channel;
From 24 April to 14 November – 5 locks of Moskvoretskaya system.

Timelines of locks on the Oka River:
From 24 April to 14 November – the lock of the water-power plant Beloomut;
From 24 April to 14 November – the lock of the water-power plant Kuzminsk.

Timelines of operation of locks on the Kama:
From 25 April to 10 November – the locks of the Nizhnekamsk water-power plant in Naberezhnye Chelny;
From 30 April to 3 November – the locks of the Votkinskaya water-power plant in Tchaikovsky;
From 5 May to 1 November – the locks of the Kamskaya water-power plant in Perm.

Timelines of operation of locks on the Volga-Baltic waterway:
From 30 April to 15 November – the locks №1-№8 of the Volga-Baltic Shipping Channel;
From 30 April to 15 November the – the locks of the Nizhne-Svirskaya water-power plant on the Svir River;
From 30 April to 15 November – the locks of Verkhne-Svirskaya water-power plant on the Svir River.

Timelines of locks on the White Sea-Baltic Channel:
From 20 May to 31 October – the locks №1-№9;
From 20 May to 15 October – the locks №10-№19.

Timelines of navigation on the Seversky Donets River within the boundaries of the Seversko-Donetsk system:
From 25 April to 20 November – the locks №2 of the SDSS;
From 25 April to 20 November – the locks №3 of the SDSS;
From 29 April to 18 October – the locks №4 of the SDSS;
From 2 May to 9 October – the locks №5 of the SDSS;
From 5 May to 30 September – the locks №6 of the SDSS;
From 8 May to 22 September – the locks №7 of the SDSS.
From 5 May to 15 October is operation of locks on the North-Dvinsky Channel (locks №2-№7);
From 5 May to 31 October the Volkhov water-power plant will operate on the Volkhov River;
From 3 May to 31 October – Pavlovsky lock on the Ufa River;
From 15 April to 1 November – Voronezhsky lock on the Voronezh River;
From 10 April to 1 November – Fedorovsky lock on the River Kuban;
From 6 April to 23 October – the locks on the Manych – Ust-Manych, Veselovky and Proletarsky River;
From 10 May to 21 September – the locks on the Novosibirsk water-power plant on the Ob River.

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Region Period Limit:
Altay region 1-30 April max 6 mt per axel
Amur region 24 April – 25 May max 6 mt per axel
Archangel region 3 April – 24 May max 3.5 mt per axel
Astrakhan region 20 March – 21 April max 5-10 mt per axel
Bashkortastan 1-30 April max 4-6 mt per axel
Belgorod region 13 March – 11 April max 6 mt per axel
Bryansk region 15 March- 13 April max 4 mt per axel
Vladimir region 1 – 30 April max 3-6 mt per axel
Vologda region 10 – 19 April max 6 mt per axel
Volgograd region 27 March – 25 April max 5 mt per axel
Ekaterinburg 15 April – 16 May max 4-8 mt per axel
Ivangorod region 10 April – 9 May max 3-6 mt per axel
Irkutsk region 17 April – 17 May max 4-6 mt per axel
Каzan 15 April – 14 May max 4-6 mt per axel
Kaliningrad region 1 March – 15 April max 5 mt per axel
Kalmykia 25 March – 25 April max 4-6 mt per axel
Kaluga 1 – 30 April max 4-6 mt per axel
Kamchatka 1 – 30 May max 4-6 mt per axel
Karelian 15 April – 22 May max 4 mt per axel
Kemerovo 27 March – 25 April max 6 mt per axel
Kirovsk region 20 April 19 May max 4-6 mt per axel
Kostroma region 10 April 9 May max 8 mt per axel
Krasnoyarsk 17 April – 26 May max 4-5 mt per axel
Kurgan 15 April – 14 May max 5 mt per axel
Kursk region 20 March – 18 April max 6 mt per axel
Leningrad region 1-30 Апрель max 3-5 mt per axel
Lipetsk region 20 March – 18 April max 6 mt per axel
Mariy El 10 April – 9 May max 6 mt per axel
Moscow region 15 April – 30 April max 3-9 mt per axel
Murmansk region 30 April – 29 May max 6 mt per axel
Nizhniy Novgorod region 1 – 30 April max 6 mt per axel
Novgorod region 7 April – 6 May max 4.5 mt per axel
Novosibirsk 17 April – 16 May max 6-7 mt per axel
Omsk region 7 April – 6 May max 10 mt per axel
Orenburg region 20 March – 28 April max 6 mt per axel
Orel region 3 April – 2 May max 4-6 mt per axel
Penza 9 April – 1 May max 6 mt per axel
Perm region 10 April – 16 May max 5-7 mt per axel
Primorskiy krai 15 April – 14 May max 6 mt per axel
Pskov region 13 March – 13 April max 3.5-5 mt per axel
Altai 1 – 30 April max 4-5 mt per axel
Rostov region 15 April – 14 May max 5-7 mt per axel
Saratov region 3 April – 30 April max 5 mt per axel
Samara region 1 – 30 April max 7 mt per axel
Smolensk region 20 March – 18 April max 5 mt per axel

Stavropol region 3 April – 2 May max 6 mt per axel
Tambov region 1 – 30 April max 6 mt per axel
Tatarstan 15 April – 14 May max 4-6 mt per axel
Tomsk region April – 15 May max 6 mt per axel
Ulianovsk region 1 – 30 April max 6 mt per axel
Udmurtia 1 – 30 April max 6 mt per axel
Khabarovsk region 1 April – 23 May max 4-6 mt per axel
Khakasia 10 April – 9 May max 5 mt per axel
HMAO 24 April – 24 May max 8 mt per axel
Chelyabinsk region 12 April -15 May max 6 mt per axel
Chuvashia 3 April до 2 May max 2-6 mt per axel
Yaroslavl region 10 April – 10 May max 6 mt per axel

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According to Rosmorrechflot, the Federal Agency for Sea and River Transport agreed on restrictions for the stay and movement of ships and small boats in the water areas of 8 cities, hosting the 2018 FIFA World Cup events.
The set of measures in the draft order of the Minister of transport of the Russian Federation Maxim Sokolov, is developed in accordance with the subparagraph “b” of paragraph 2 of the draft decree of the President of the Russian Federation “on the features of enhanced security measures during the FIFA world Cup 2018 FIFA confederations Cup 2017”.
The restrictions will be introduced:
in Volgograd 18, 22, 25, 28 June from 12.00 to 24.00 local time in the area of the water area near the right Bank of the Volga river, bounded by a circle radius of 0.7 km with a center at the stadium ” Volgograd arena»;
in Kazan 16, 20, 24, 27, 30 June and 6 July from 12.00 to 24.00 local time in the waters of the Kazanka river from the railway bridge to the Millennium bridge;
in Kaliningrad 16, 22, 25 and 28 June from 12.00 to 24.00 local time in the waters of the Pregolya and Staraya Pregolya rivers from the second overpass bridge to the Eastern overpass;
in Moscow, 14, 17, 20, 26 June and 1, 11, 15 July from 12.00 to 24.00 local time in the waters of the Moscow river from the luzhnetsky Naberezhnaya Berezhkovskaya from bridge to bridge Novoanninskogo, and 16, 19, 23, 27 June and 3 July from 12.00 to 24.00 local time in the waters of the Moscow river from the Spassky bridge (44.7 km) to the Stroginsky bridge (40.5 km) and the Moscow canal from the river Moscow (40.6 km) to the Skhodnenskaya channel (44 km);
in Nizhny Novgorod 18, 21, 24, 27 June, 1 and 6 July from 12.00 to 24.00 local time in the water area near the right Bank of the Volga river, a limited area of the circle radius of 0.7 km with the center at the ” Nizhny Novgorod Stadium»;
in Rostov-on-Don 17, 20, 23, 26 June and 2 July from 12.00 to 24.00 local time in the waters of the don river from Voroshilov bridge to the Meridian line passing through the Eastern tip of the Green island;
in St. Petersburg 15, 19, 22, 26 June, 3, 10 and 14 July from 12.00 to 24.00 local time on the site of the water area adjacent to Krestovsky island;
in Sochi 15, 18, 23, 26, 30 June and 7 July from 12.00 to 24.00 local time in the Black sea, adjacent to the city of Sochi, a limited arc circumference radius of 10 kilometers with the center at the stadium “Fisht”.

People’s Unrest in Iran is Exerted on Freight Rates in the Caspian Region

Unlike freight rates in the Azov region, which sank by $ 12 per tonne over the past week, freight in the Caspian region is getting cheaper more smoothly, according to the Glogos Project freight company, within 1-2 dollars per week. If in December of last year, rates showed fluctuations in the region of $ 48-50 per ton on the route Astrakhan-North Iran, then in the second week of 2018, spot vessels are chartered at rates of $ 43-46 per ton, the company reports.

“The rates are kept at a level even despite the decrease in the supply of corn and barley to northern Iran,” says Konstantin Grinevich, CEO of the Glogos Project, “where the charterers are afraid of sending ships because of the high risks of long idle ship times in the ports of Iran due to folk unrest in the country. ”

One of the reasons for keeping high rates in the region, according to the expert, is the growth of the cargo traffic of non-grain cargo across the Caspian Sea. Port employees and ship owners report the presence in the port terminals of Astrakhan of timber, metal, pulp and paper products for shipment to Iran. According to the Center for Middle and Near East of the Russian Center for Strategic Studies, following the lifting of sanctions in Iran in January 2016 from Iran, the trade turnover between Iran and Russia is growing by an average of 70% per year, and imports from Russia exceed Iran’s export operations by at least half.

Nevertheless, at present, shipowners willingly agree to work on a contractual basis, providing a fixed rate for an extended period. At a rate of $ 43-45 per ton on the spot fleet, the fixed freight cost under the contract is $ 33-36 per ton. Shipowners who are in a position to assume the possibility of further reducing freight, through long-term contracts, are trying to protect themselves from downtime.

Recall that according to the January report of the Department of Agriculture of the US Government, the forecast of corn imports by Iran in 2017/18 was reduced from 10 to 9 million tons. According to expert estimates of the department’s specialists, the country has accumulated 62% of its grain consumption from domestic consumption during the year (10.1 million tons), which affects the pace of purchases of agricultural raw materials.

Source: Maritime News of Russia

Russian traders impose grain importers pickup

Due to acute shortage of fleet, lack of places of storage for applicants to the ports of grain and the high freight rates of the Russian traders importers impose contracts on a “free on board” which means the sale of goods in the port, including the loading of grain on the ship. A search of the ship and delivery of cargo in the importer’s country at such delivery basis are the responsibility of the buyer.

“Not long ago, the charterers, on the contrary, insisted on contracts CIF (cost, insurance and freight), as in this case could earn not only on sale, but the delivery of grain, explains a new trend Konstantin Grinevich, Director General of the brokerage company “glogos proekt”. – With the current high freight rates, shipping of grain for many rather work at a loss than additional earnings”.

Since last year, the cost of shipping grains for export routes has almost doubled from Rostov/Azov to the ports of Marmara sea freight rates increased 1.6 times and amounted to $ 36 per ton, in Izmir – 1.8 times ($39 per ton), Mersin – 1.5 times ($50 per ton) in Egypt is 1.6 times ($55 per tonne).

While importers agree to the changed conditions traders: good quality harvested this year crop, the willingness of Russian producers to reduce the price for grain and a weak ruble provides benefits from cooperation. However, over time, the costs may outweigh the. “This situation creates tension among market participants, – said Konstantin Grinevich, the shipowners are in no hurry to conclude contracts for freight, expecting further increase in rates, traders are not able to find free fleet, shift the responsibility for the delivery of the goods on the shoulders of the buyer. No real investment of the state in infrastructure and export routes, the country risks losing status as a leading provider of grain”. Moreover, Europe, USA and Canada, the principal competitors of Russia, problems with facilities for storage and processing of grain do not.

Russian farmers for the second consecutive year are the world leaders in the supply of grain abroad. If in 1980-1990-ies of the USSR has imported 30 to 47 million tons of grain a year, now one of Russia stands ready to put over 40 million tons to foreign markets, not to mention Ukraine and Kazakhstan. While the port terminals, storage facilities and grain transportation on export routes were not prepared for the number of the arriving grain. The falling price on the market is not conducive to active sales, but the lack of storage is forcing traders to sell surplus goods at a disadvantageous price, despite the high freight rates.

Recall that according to the forecast of the company “SovEcon” grain exports this year may reach a record 44 million tons, including wheat exports – 32.4 million tons, barley to 4.3 million tons, corn – 5.7 million tons. According to experts of the Agency, further export growth is hampered by infrastructure limitations.

Glogos sails from Shanghai

August 28 – Glogos has delivered the second batch of Fortum-manufactured wind turbine components from Shanghai, China to the Port of Ulyanovsk, Russia, via the Port of Constanta, Romania.

The total cargo volume amounted to 40,000 freight tonnes, with the length of each blade measuring 54 m. 

Glogos was responsible for the ocean freight and transhipment to river barges at the Port of Constanta, which were reinforced with a custom-made deck for the loading of the heavy cargo.

At the Port of Constanta, the Glogos team organised a three-tiered loading systems. Maxim Yakovlev, project manager at Glogos, explained: “This arrangement allowed us to optimally place the entire cargo on only two barges.”

Glogos, a member of the Project Cargo Network in Russia, previously delivered the wind turbine towers in autumn 2016.

Glogos Deliver Wind Turbines to Ulyanovsk

Glogos in Russia have recently delivered the second batch of wind turbines from Shanghai in China to the river port of Ulyanovsk. The total cargo volume amounted to 40,000ftns with the length of each blade at 54m and the height of each base at 4.85m. Glogos handled the ocean freight shipping with transshipment to river barges made in the port of Constanta (Romania). The whole project was performed in two batches – in autumn 2016, the towers of wind turbines were transported and the propellers were delivered during August 2017.

For the ‘river-sea’ vessels, a reinforcement deck for loading the heavy cargo was specially made. Whilst at the port of Constanta, the Glogos team organised the transshipment of the blades with a three-tiered loading system on barges, the modelling and planning of which was carried out in advance and tested in the port of Shanghai. The Project Manager, Maxim Yakovlev comments; “This arrangement allowed us to optimally place the entire cargo on only two barges and save the customer’s resources”. See the gallery below for photos of the project.

The cargo owner is the power company, Fortum. Glogos is specialised in the international transportation of heavyweight project cargo such as autoclaves, presses, equipment, and turbines as well as factories, oversized equipment, metal structures, production and assembly lines.

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Glogos Transports Ulyanovsk Turbines

Logistics company Glogos Project has moved a second batch of wind turbines from Shanghai, China, to the river port of Ulyanovsk, Russia.

The large cargo involved 40,000 tonnes and turbine blades measuring up to 54 meters. The delivery was performed in two batches, with the wind turbine towers and propellers traveling separately.

“In the port of Constanta, employees of the Glogos Project organized the transshipment of blades with three-tier accommodation on barges, the modeling of which was carried out in advance, even in the port of Shanghai,” a spokesperson for Glogos said.

The cargo was delivered on behalf of Russian power company Fortum.

Photo: The Wind turbine components loaded for transport. Credit: Glogos

New solution for wind generators

Wind turbines were delivered to Ulyanovsk

In August 2017, the second batch of wind turbines from Shanghai, China, was delivered to the river port of Ulyanovsk, Russia.

Ocean freight shipping with transshipment in the port of Constanta, Romania, was performed by the Russian logistics company Glogos Project. The total cargo volume amounted to 40,000 freight tons, the height of the base was 4.85 meters, the length of each blade was 54 meters.

The delivery was performed in two batches: in the autumn 2016, the towers of wind turbines were transported, in the summer 2017, the propellers were taken. From China to Romania the cargo was carried by an ocean vessel, transshipment on barges took place in the Romanian port of Constanta. For “river-sea” vessels, a reinforcement deck for loading heavy towers was specially made.

In the port of Constanta, employees of the Glogos Project organized the  transshipment of blades with three-tier accommodation on barges, the modeling of which was carried out in advance, even in the port of Shanghai.

The project manager Maxim Yakovlev said: “This arrangement allowed us to optimally place the entire cargo on only two barges and thus save the customer’s resources.”

The cargo owner is the power company Fortum. “Glogos Project” is specialized in international transportation of heavyweight project cargoes such as autoclaves, presses, equipment, turbines, etc., but, in fact, it transports factories, oversized equipment, metal structures, production and assembly lines.

The company has been working since 2009. SOURCE: GloGos

Kerch Strait delays fears boost regional freight

Freight rates in Azov sea gain $3-4 each week with new grain coming into market and fears of delays at Kerch Strait bottleneck, caused by Kerch Bridge construction works. Owners prefer longer trips, moving their fleet from Azov region, fearing possible losses. Russian Ministry of Transport enforced Special Traffic Regime in Kerch Strait for August -September period, with planned closures of traffic in Strait from 12 to 72 hours randomly, though as of early August, factual closures last no more than 10 hours, 1-2 times a week. As a result, short leg charters, most profitable during grain season in normal conditions of uninterrupted trafficking, seem to be coming back.

Kerch Strait delays fears boost regional freight

Freight rates in Azov sea gain $3-4 each week with new grain coming into market and fears of delays at Kerch Strait bottleneck, caused by Kerch Bridge construction works. Owners prefer longer trips, moving their fleet from Azov region, fearing possible losses. Russian Ministry of Transport enforced Special Traffic Regime in Kerch Strait for August -September period, with planned closures of traffic in Strait from 12 to 72 hours randomly, though as of early August, factual closures last no more than 10 hours, 1-2 times a week. As a result, short leg charters, most profitable during grain season in normal conditions of uninterrupted trafficking, seem to be coming back.

Source: Glogos-Project Company, project cargo and chartering.