The rates of coasters in the Black Sea fell significantly in April

Due to the lack of new cargo shipments with a large amount of free tonnage, the Black Sea index of short-distance transportation decreased by 4.4%.

In April, the market for coastal and regional transportation by “coasters” continued its stratification. As a result, a downward trend prevailed in all regions, except for the Northern European region, noted freight analyst Valery Voynichenko, “APK-Inform”writes .

Due to the lack of new cargo shipments with a large amount of free tonnage last month, the EUSSIX index (European Short Sea Index) for the Black Sea region decreased from 28.5 to 27.25 USD/t, or by 4.4%.

Referring to brokers, the expert says that real freight rates in the Black Sea have fallen below the break-even level and currently do not cover operating costs.

“For example, a break-even transportation of 5,000 tons of grain from Reni to the Sea of Marmara requires a freight rate of 26-28 USD/t, while today’s market offers only 20-22 USD/t. But that’s not enough, many “coasters” are forced to stand still for a week or more due to the lack of any kind of cargo,” Voynichenko claims.

Also, freight rates in the Sea of Azov fell in April. Thus, according to BMTI, the EUSSIX index for this region decreased by 0.5 USD/t, or 1.2%.

As previously reported by USM, freight rates in the Black Sea fell due to lower export rates.