Freight market: Ship owners to reduce rates because of fall in demand for grain transportation
Demand for grain transportation decreased on all major routes. Ship owners, in turn, had to reduce freight rates and fight for insignificant amount of available cargo.
Weakened trade activity:
Slight weakening of trading activity was noted in the south of the Atlantic. Requests for grain transportation from South America declined. Charterers began to reduce shipping cost of agricultural products to the Far East, reports UkrAgroConsult.
Traffic on major routes decreased:
The situation in the North Atlantic remained unchanged. Brokers reported that the number of applications for the main routes decreased, and the charterers began to reduce transportation prices actively. Shipping of Panamax lot of agricultural commodities from the US Gulf ports to China cost about USD 35-36/MT.
Black Sea region most affected:
Handysize market kept weakening in the Black Sea region. Ship owners so far managed to avoid noticeable reduction in quotations, and the rates lowered quite slowly. UkrAgroConsult expects trading activity will decline even more until the end of the current week due to the Easter holidays in many countries of the region.
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Source: Black Sea Grain