Anti-record: freight rates for coasters from the Danube ports fell

According to the results of June, the freight rates fell again for the sea transportation of agricultural products by “coasters” from the Danube ports (3-6 thousand ton consignments).

This is reported by the Ukrainian Danube Shipping Company.

So, in June, offers from Izmail to Egypt and Greece crossed the $20 per ton mark.

This is almost twice less than at the beginning of the year.

The head of the Ukrainian Grain Association (UGA) Mykola Gorbachev believes that the reason for the return of the export model traditional for Ukraine is large consignments, large sea vessels, large ports.

According to the general deputy of the UDS, Vladyslav Belakh, the same thing is happening that the UDS has already faced in the market of river transportation.

“The perfect storm. A large number of the fleet and a rapid decrease in the volume of cargo. Some of the shipowners in the crisis choose suicidal tactics, dump, work in the red, pushing the market lower and lower,” says Vladyslav Bielakh.

He also emphasized that the situation may stabilize over time. Some market players may abandon it, as happened in river transport.

“In the end, the winner is the one who saved, and did not uselessly spend the resource of the fleet for the sake of earnings, which does not cover the costs of repairs and restoration of the ship. Our policy in this regard is balanced, we are thinking about the future, about preserving assets that belong to the state,” explained the deputy general of the UDS.

We will remind you that the UDS proposes to introduce a discount for railway transportation to ports on the Danube. According to experts, it will justify itself if the condition of its receipt is transshipment of grain to the state river or sea fleet.