The increase in freight rates should not be explained by the desire of shipowners to obtain excess profits – an opinion

The increase in freight rates in the Black Sea is associated with an increase in insurance, fuel and operating costs, as well as risks for crews.

This opinion was shared by Maria Markina, a charter broker at Seazam Shipbrokers.

The broker recalled that the situation has deteriorated sharply in recent weeks, but “the increase in rates should not be explained by the desire of shipowners to receive excess profits”. War risk insurance has become significantly more expensive, bunker fuel costs have increased, and finding a crew for a voyage to a dangerous zone has become more difficult.

Delays, downtime risks and direct additional costs are also added to the cost of the voyage. According to Markina, in the current conditions, shipowners often work at the limit of profitability or even at a loss.

She also emphasized that compliance and crew safety remain key conditions for working in the Black Sea direction. These factors are increasingly determining the economics of voyages and negotiations between shipowners and charterers.

Read also: How ONE works with Ukrainian cargoes without calling at ports: a blitz interview with a representative of the line’s agent