Trading activity in the Azov-black sea region has again started to decline, but on freight rates while it is not much, because they are already on the verge of profitability. Most of Owners continues to search cargo on the long arm in the hope to combine a direct flight with return downloads. This approach, first, increases the transit time, which enables Owners to wait out the low season, and secondly to preserve the variability in the work plan of the cargo from the sea of Azov. At the same time on the 21-22 week is expected to open a large number of ships, gruzevskis another may holidays and returning with cargo in the sea of Azov, therefore, market participants predict an increase in spot tonnage in the region.
Many ship-Owners, whose fleet opened at the end of the month, looking for flights to Turkey, not to get on Ramzan Fitr. In the 23rd week, the Turks and the Turkish banks will be from Tuesday until the end of the week, which can lead to long delays in the ports, difficulties with money transfers and low business activity in General, therefore, the Shipowners would be willing to make concessions for flights to other destinations.
Caspian market continues to fall, the situation with payments from Iran has not yet resolved the forecasts for the period of its settlement too. This leads many Exporters to find new partners and try to sell products through the major international Traders, which are the tools for trading with Iran. For message senders, the number of direct contracts with Iranian recipients nearing zero, or we must accept a long delay on payments in anticipation of a new season can adversely affect the turnover and the possibility of purchasing a new harvest in the required quantities.
The state trading Corporation of Iran announced that the wheat harvest in the country is expected to reach 11 million tons. This means that this year Iran will not import wheat. Iran will continue to send mainly only corn and barley. However, given the problems with payments from the Iranian side, the cargo of maize and barley may slow down, which will constrain growth in freight rates in the Caspian region.
Average prices for domestic wheat of the new harvest are rising due to low harvest in the USA and concerns about the quality of American winter. At the beginning of the new season we can expect an increased demand for wheat from Russia and, as a consequence, the growing demand for a fleet that could lead to sharp jumps in rates in mid July.