Black Sea freight market loses momentum: rates stabilize after brief growth

The influx of orders for the transportation of Ukrainian grain is no longer stimulating the market, but the barge segment on the Danube is still growing.
The Black Sea freight market in mid-July shows mixed trends. This was reported by ASAP Agri analyst and Atria Brokers broker Pavlo Lysenko, writes Latifundist.
The positive momentum caused by new orders for the transportation of grain from Ukraine has already lost its strength. It is difficult for shipowners to raise rates above current levels.
The handysize and coster segments remain stable, while rates on the Danube barge market continue to increase due to limited tonnage supply and navigation problems due to low draft. In the Panamax segment, prices on routes towards the Far East have increased due to shipowners’ concerns about the safety of passage through the Red Sea after the Houthi attacks.
Current freight rates:
• “panamaxes”: corn from deep-water ports of Ukraine to South China — $37–38/t (+$1/t per week);
• “handysizes”: 30 thousand tons of corn from deep-water ports of Ukraine to the east coast of Italy — $17–18/t;
• “costers”: 6 thousand tons of corn from Danube ports of Ukraine to the east coast of Italy — $30–32/t;
• barges: 1–3 thousand tons of corn from Izmail or Reni to Constanta — €11–12/t (+€1/t per week).
Recently, USM reported that Polish oil producers are asking the Polish government to lift the embargo on Ukrainian rapeseed imports due to a shortage of their own.