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Glogos Freight Report Week 20

Region: Russian River, Azov / Black Sea, Caspian 
Trade: Coaster shipments 

Despite of the expectations of Charterers, freight level dropped inconspicuously in Azov basin on week 20. The average rate basis voyage of the Rostov-Marmara reached USD 16 pmt, which is only USD 1 less than level of the last week. Ship Owners vouch for farther revival of the market as the whole spot tonnage, which had accumulated in Azov region on 19 week, was fixed. 

Business activity of the Turkish Importers is still low. It’s connected with the devaluation of national currency and overpriced grain which is unacceptable for Turkish buyers. In the current market conditions Ship Owners, who traditionally work only on short legs to Turkish ports, are ready to treat other directions, including Libya and Syria, where workable freight rate is higher considering all risks. 

The trading among Russia and Iran has recovered on the week 19 after the President of the United State of America speech about imposition of U.S sanctions against Iran. Traders even now try to procure substantial grain volume for avoiding the problems with international political and financial isolation of Iranian Republic.

On the part of Ship Owners in Caspian region has been noted increased demand for shipments ex Astrakhan to Iran as opposed to shipments from Volga ports. This is due to the fact that the voyages from the river ports (Kamyshin / Saratov / Samara / Togliatti) take up a lot of time. Ship Owners are able to accomplish about 2-3 two-way voyages in the month if they work form Astrakhan, and only 1 two-way voyage from river ports. Therefore, in the longer term hauls ex Astrakhan are considered more profitable. In this context workable freight level for voyage to Iran reached USD 28 pmt. This is USD 3 less than last week.