The fall of the freight market has contributed to the lack of ports in the Azov-black sea region cargo, and formed after the Christmas holidays a lot of free tonnage, returned from long and short flights. Shipowners hope that next week rates will increase after January 14, 2018, will finally impose ice restrictions and therefore will reduce the number of vessels entitled to operate in the sea of Azov.

Additional to postnovogodny calm factor, paralyzing business activity of the Russian exporters of grain, was the strengthening of the ruble against the backdrop of weakening of the Turkish Lira – the currency of the main importer in the region. While traders are trying to understand how to operate in the changed conditions, farmers actively chartering vessels up to Turkey.

Because agricultural producers can focus on their own unit costs and not on market prices, they have more degrees of freedom than commercial enterprises, they can now react to lower rates, protoa inexpensive ships. Another beneficiary of the situation were the charterers, who had not managed before Christmas to close the old contracts. Thanks to cheap freight they received additional margin. New contracts will be concluded taking into account the new values of rates of Turkish and Iranian importers are closely monitoring the Russian market and, therefore, will not pay for shipping of grain.

"However, we expect the resumption in the second half of January, business activity, freight can be "played back" - predicts Konstantin Grinevich, Director General of the company "glogos proekt" - that, as a minimum, be maintained at this level." The expert reminded that there is now a high demand for barley from Iran and Turkey, the Turkish government has even established a zero duty for the import of barley till 01 APR 2018. Shipowners will be willing to work even at reduced rates, as after the fall of the values of freight rates in the region remain high relative to the same period of 2017.

About the company
"Glogos proekt" is a professional brokerage company that provides services of chartering ships. We help charterers and traders to Charter ships in the ports of Rostov-on-don, Azov, Yeisk, Temryuk, Taganrog, Novorossiysk, St. Petersburg, Astrakhan grain terminal and Grain Silos on the Middle Volga. The company operates since 2009.