Freight rates remain stable despite low demand — ASAP Agri

Bunker fuel prices are gradually decreasing, but activity in the grain transportation market remains subdued.

Freight rates for the transportation of Ukrainian grain remain mostly stable this week, this is reported ASAP Agri analyst and Atria Brokers freight broker Pavlo Lysenko.

Despite shipowners’ expectations, the increase in tonnage demand recorded last week has not become sustainable. Most deals on the spot market are concluded on the terms of the previous week.

At the same time, pressure from fleet owners due to high bunker fuel prices is decreasing. Energy is becoming cheaper due to the easing of tensions between Israel and Iran, which reduces risks in the energy market.

Freight for the transportation of corn from deep-water ports of Ukraine to Southern China by “panamax” this week increased by $ 1 and is $ 35-36 per ton.

In the “handysize” segment, rates for the transportation of 30 thousand tons of corn to the east coast of Italy remained unchanged at $17 per ton.

Rates for transporting 6,000 tons of corn by “fireworks” from Danube ports to Italy are kept in the range of $28–30 per ton.

At the same time, the freight for barge transportation from Izmail and Reni to Constanta, Romania, for batches of 1–3,000 tons remains at the level of 8–9 euros per ton.

Meanwhile, there are no signs of systemic revival in the market yet. The limited number of firm applications does not allow forming a new wave of demand, and farmers are mostly waiting for the start of the new season, assessing price prospects.

As USM recently wrote, the USPA and business are looking for joint solutions for the logistics season in the port of Chornomorsk.