Danube freight is rapidly increasing in price amid the suspension of the ports of Great Odesa

The number of “handysizes” and “supramaxes” ready to enter the ports of the Great Odesa region has fallen to a minimum after repeated attacks on merchant shipping.

Ukraine’s deep-sea export market remains close to a standstill. ASAP Agri reports.

In contrast, freight rates for tankers from the Danube are growing almost daily — since the beginning of July, rates for most routes have increased by $10/MT, and to Egypt — by almost $20/MT.

The reason for the turnaround is obvious. The number of “handysizes” and “supramaxes” ready to enter the ports of the Great Odesa region has fallen to a minimum after repeated attacks on merchant shipping. This has forced exporters to look for alternative routes, and demand has shifted to the Danube.

The growth in rates is also supported by more expensive bunkers — the price of MGO has increased by almost $400/MT over the past month. Both factors are putting pressure on Danube freight rates simultaneously.

Demand for barges from the Ukrainian Danube to Constanta has also increased. However, extremely low water levels continue to limit loading opportunities, keeping rates unattractive for charterers.

Also, the day before, USM wrote that the suspension of ship calls had almost paralyzed agricultural logistics to Ukrainian ports.