Handysize and coaster rates remain stable despite low market activity

Due to the closure of the Bystre Canal, the owners of “coasters” are demanding an increase in rates, but the market remains restrained.

The situation on the freight market of the Black Sea at the end of July remains sluggish – activity is low, and there are no firm applications for cargo to revive it. This was stated by ASAP Agri analyst Pavlo Lysenko.

Despite this, the owners of “handysizes” and “coaosters” keep freight rates at a stable level.

In the “panamax” segment, the freight from deep-water ports of Ukraine to South China has increased to 39-40 USD/t (plus 2 USD per week).

In the “handysizes” segment, the rate for 30,000 tons of corn from deep-water ports of Ukraine to the east coast of Italy remains stable – 17-18 USD/t.

In the “coaster” segment for voyages from Danube ports (consignments of 6,000 tons of corn) to the eastern coast of Italy, rates have not changed — 29–30 USD/t.

However, shipowners, in particular, of vessels with a carrying capacity of 3–4 thousand, are increasingly demanding an increase in rates due to the redirection of voyages from the closed Bystre canal to Sulina. After all, this entails additional costs and delays and increases the gap in the freight expectations of the parties and inhibits new fixations.

Barge freight from Izmail or Reni to Constanta for corn consignments of 1,000–3,000 tons is estimated at 11–12 EUR/t.

Meanwhile, the day before, USM wrote that Ukraine and Egypt have agreed on steps to expand agricultural trade.