Freight rates for grain exports from Ukraine have increased

Shipowners managed to slightly increase freight rates for vessels exporting Ukrainian grain.

The initiative in the market shifted to the side of shipowners in the last week of February, the Ukrainian Grain Association (UGA) reports.

Freight rates increased despite the lack of a significant increase in the number of applications for grain transportation from Ukraine and limited activity in fixing the fleet.

In the coster segment, shipowners are firmly defending their positions against the background of increasing tariffs for passing the river canal and delays in Sulin.

Meanwhile, Handysize owners, encouraged by positive developments in the Atlantic market, do not consider further reductions in rates when working from Ukraine, which forces charterers to give in when it is necessary to fix the cargo.

The freight department of Atria Brokers estimates current rates for the transportation of a Panamax consignment of corn from Ukrainian deep-water ports to South China at 33-34 USD/t (+2 USD/t per week).

In the Handysize segment, freight rates for corn transportation from Ukrainian deepwater ports to the east coast of Italy increased by 1 USD/t to 16-17 USD/t.

In the bulk carrier segment, Atria Brokers estimates rates for transportation of 6,000 tons of corn from Ukrainian Danube ports to the east coast of Italy at 28-30 USD/t (+2 USD/t).

At the same time, no positive changes have been observed for barge owners so far. Freight for spot shipments of 1,000-3,000 tons of corn from Izmail or Reni to Constanta by barge is estimated at 8-9 EUR/t.

As previously reported by USM, low freight rates force shipowners to subsidize trade.