Tonnage shortage pushes freight rates from Ukraine up

The largest growth is observed in the segment of “handysizes” and “costers”, while “panamaxes” remain stable.

At the end of September, Ukrainian grain charterers faced a limited fleet supply, which forces them to increase transportation rates. This is reported by ASAP Agri analyst and freight broker Atria Brokers Pavlo Lysenko.

The freight market for Ukrainian grain exports at the end of September is characterized by a shortage of tonnage capable of performing voyages. This led to another increase in rates.

In particular, in the Handysize segment, the cost of transporting corn from Ukrainian deep-water ports to the East Coast of Italy rose by 1 USD/t per week and is 24–25 USD/t. The deficit of the “coster” fleet is also becoming more noticeable: the transportation of 6,000 tons of corn from Danube ports to Italy is already estimated at 34–35 USD/t (+1 USD/t).

In contrast, rates in the Panamax segment remain stable. Corn transportation from Ukrainian deep-water ports to South China is estimated at 47–48 USD/t. The only exception was the increase in rates in the Supramax segment for shipments to Bangladesh — plus 1 USD/t.

According to experts, the growth of cargo flows in the Black Sea leads to increased demand for vessels, and the limited choice of tonnage forces charterers to make concessions and raise rates when suitable candidates appear on the market.

Also, the day before, USM wrote that Ukrainian traders are preparing October deliveries without taking into account Constanta due to possible sanctions.