Freight rates in the Black Sea have increased due to the actions of russian federation

Freight rates in the Black Sea have increased significantly. This is due to the delay of ships due to the actions of russia.

The “Grain Agreement” was extended, but over the past 2 weeks, the daily charter rates for vessels from the Black Sea have dropped almost 2 times, explains BPG Shipping Director Gennadiy Ivanov in an interview with APC-Inform . This is due to the fact that by the time of its extension due to sabotage by russian inspectors, a large concentration of vessels, more than 100-150 units, had formed in Turkish waters.

Due to the sabotage of the operation of the SCC by a terrorist country, most of the vessels remain in a state of waiting. Some charterers require shipowners to include in the freight rate up to 20 days of waiting in Istanbul at the expense of the shipowner.

“Therefore, for a relative assessment of freight rates from Ukraine, it is important to take into account the number of included waiting days,” Ivanov notes.

However, the situation may stabilize over time. In this case, a small increase in freight is expected in January, which, in addition to increased sales, will also be affected by weather factors. Shipowners will take this into account when concluding charter contracts.

“Potential delays in ports due to weather will lead to an increase in the insurance premium, because it is initially calculated for 7 days of stay in the military risk zone, and then increases proportionally. Currently, the amount of the insurance premium per day is about 30,000 dollars, and then the price of freight increases by about 1 dollar per ton for each extra day of stay in the territorial waters of Ukraine,” says Gennadiy Ivanov.