Freight from the Danube to Egypt exceeded $100 per ton

The gap between charterers and shipowners’ expectations continues to grow, with almost no deals.

The situation on the Danube freight market continues to deteriorate. ASAP Agri reports this.

Periodic closures of the Sulina Canal due to weather conditions increase the queues of vessels and increase the waiting time for passage. Together with attacks on merchant vessels in the Black Sea, this is increasingly complicating the export of grain from Ukrainian Danube ports.

The availability of vessels for such voyages has significantly decreased. Shipowners who are still willing to work in this direction are putting forward even higher freight ideas. As a result, the gap between charterers’ and shipowners’ expectations continues to grow, which limits the conclusion of deals.

Due to the minimal number of fixations, it is difficult to determine current market freight levels. The rates quoted by market participants vary significantly, and the final price depends on the position of the vessel and the conditions of passage through the canal.

As of October 23, the freight of “costers” from the Danube to Egypt was about $108-110 per ton – a new maximum. Back in June, the rate was around $30, which means that transportation has almost quadrupled in price in four months.

The barge market also remains difficult. Draft restrictions on the Danube reduce the carrying capacity of barges, which maintains a significant deficit in available tonnage.

We will remind you that at the end of September, due to a week-long closure of navigation, about 125 vessels accumulated at the approaches to the Sulinsky Canal. And as of October 21, about 80 vessels were waiting for passage, while some berths in Ukrainian Danube ports remained free.

AS USM wrote the day before, the rail transport of grain to ports fell by half compared to October.