Freight rates in the Black Sea are gradually increasing

The demand for the export of Ukrainian agricultural products from the Black Sea ports is increasing after the opening of the temporary grain corridor.

The demand for transportation of Ukrainian agricultural products from the ports of Greater Odessa is growing. The opening of an alternative grain corridor led to the intensification of negotiations regarding the fixing of large vessels in the direction of Odesa. This was reported by Spike Brokers analysts.

Given the war risks and the limited supply of the fleet, the expected cost of freight to Spain through the temporary sea corridor is about $40 per ton of cargo for handysize vessels and $25 per ton for panamax vessels.

The quoted rates are almost $30-40 per ton lower than the existing river routes.

Currently, freight rates in the Black Sea are:

• Izmail (Ukraine) — Constanta (Romania): 40-45 euros (1-3 thousand tons);

• Izmail — Tarragona (Spain): 72-75 euros (9-10 thousand tons);

• Ishmael — Alexandria (Egypt): $60-62 (9-10 thousand tons);

• Izmail — Greece: $55-57 (5 thousand tons);

• Constanta — Tarragona: 17-20 euros (25-35 thousand tons);

• Constanta — Tarragona: 12-15 euros (55-65 thousand tons).