Freight rates for coasters in the Black Sea region have fallen significantly

The market for coasters in the Black Sea during 2023 significantly lost ground.

The annual decrease of the EUSSIX index on the Black Sea coaster market was 19.08 USD/t, or 43.9%. At the same time, the December decrease in rates can be called rather insignificant — 0.5 USD/t, or 2%. This is reported by “APC-Inform” with reference to freight columnist Valery Voynichenko.

At the same time, according to ISM brokers, the time charter equivalent for 5,000-6,000 dwt coasters operating from the Black Sea has fallen to USD 2,970/day this year, or by 39%. To compare, in 2022, this figure was 4,870 USD/day.

“In many ways, the reason for this situation lies in the loss of the huge share of the Ukrainian cargo base (with the exception of grain) and in the reluctance of many shipowners to enter the ports of the aggressor country, which creates excess tonnage,” the expert noted.

The decrease in freight rates in December 2023 mostly concerned the Danube ports. Thus, according to independent brokers, rates for the transportation of 5,000 tons of wheat from Galatsia via the Sea of Marmara in December decreased from 27 USD/t to 25 USD/t (-7.4%), and in the Adriatic – from 41 USD/t to 38 USD /t (-7.3%).

The cost of transporting wheat from Reni to the Sea of Marmara decreased over the same period from USD 31/t to USD 27/t (-12.9%), and to Mersin from USD 39/t to USD 36/t (-7.7% ).

However, the most profitable for owners of river-sea vessels in December was the Azov region, where the EUSSIX index rose from 58.14 USD/t to 63.11 USD/t, or by 8.5%. However, compared to the same period last year, there is a lag of 14.39 USD/t, or 18.6%.