River and sea freight rates are rising due to demand in the Black Sea

Along with the increase in demand in the Black Sea region, river and sea freight rates are also increasing.

The lack of effective comprehensive solutions for loading Ukrainian grain at the roadway of the port of Constanta significantly limits the flow of cargo through the port and increases the cost of loading Panamax-class vessels with Ukrainian grain, Spike Brokers analysts report.

According to their data, direct freight to Spain by a ship with a load of 9-10 thousand tons can be more profitable than the delivery of grain by barges to Constanta, transshipment on a Panamax-class ship and shipment to Spain.

So, market rates for transportation by water are currently:

• 1-3 thousand tons Izmail (Ukraine) — Constanta (Romania): 40-45 euros;

• 9-10 thousand tons Izmail (Ukraine) — Tarragona, Valencia (Spain): 72-75 euros;

• 25-35 thousand tons Constanta (Romania) — Tarragona (Spain): 19-22 euros;

• 55-65 thousand tons Constanta (Romania) — Tarragona (Spain): 15-18 euros.