Grain supply from Black Sea region recovered with new season beginning

26.07.2016

With beginning of the new season and the end of holidays in Muslim countries grain supply from the Black Sea region increased. According to brokers, freight rates grew the most for Supramax vessels in the eastern direction - barley and wheat were actively exported from Ukraine, Russia and Romania to Saudi Arabia, Bangladesh, the Philippines, Indonesia and China. The number of free tonnage in the market exceeds the demand. In the Handy segment freight rates strengthened as well, but the geography of deliveries is somewhat different: owners of Handysize vessels prefer shipments to the Mediterranean basin.

Trading activity also increased in the coaster segment. Information portal "Promyshlennye gruzy" reported that grain shipments in 8-10 KMT lots recovered most of all. Demand for 10-12 KMT deadweight vessels also increased most significantly, and freight rates rose by another USD 0.5-1/MT. The conditions for owners of 3-4 KMT tonnage also improved, but market operators do not associate it with increased demand for such a fleet, but with outflow of "river-sea" vessels in the shallow part of the basin and an upward trend in the neighboring region.

More information on freight market is available to subscribers for weekly market report "Black Sea Grain & Oil" by UkrAgroConsult.

 

 

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