Freight rates in the Azov–Black Sea region have reached their peak (coaster segment), with some charterers refusing to transport wheat, grains, and legumes. Spot shipments are becoming less frequent amid increased business activity, while traders-exporters are shifting to tender-based shipments. In addition, export duties on grains and legumes have risen by 11–12%.

At the same time, freight rates for transporting grain from Russian Black Sea ports (deep water) remain stable.

The widely expected surge has not materialized; however, the market has at least stabilized compared to the volatility seen in mid-summer 2023. On the other hand, some exporters are seriously concerned about the current supply-demand balance. Supply still exceeds demand: many traders report a drop in demand for milling wheat, while Romanian prices (for wheat with the same protein content – 12.5%) remain lower than Russian. If this situation continues, the market may face falling prices for Russian wheat, followed by lower freight rates for Handysize and Panamax tonnage.

Grand Opening of the Vysotsky Port Terminal

The decision to repurpose the port from coal to grain handling has been under discussion for some time. In recent years, grain production in central Russia, the Volga region, and Siberia has shown steady growth. The terminal is designed for transshipment of major grain crops — wheat, barley, and corn — with a projected capacity of 4 million tons per year. Nevertheless, many exporters believe it is more advantageous to wait for the Kerch Bridge situation to be resolved rather than redirecting their cargo flows through new ports. A similar opinion is shared by traders shipping grain through Novorossiysk, Taman, and the Caucasus. Companies are reluctant to venture into unfamiliar markets despite the obvious congestion of domestic ports.

Sincerely, Konstantin Grinevich and Glogos Project