Last month the agreements between Russia and Ukraine have not been renewed. As we know, signed by Turkey and the United Nations, these allowed the free and safe transit via sea of grains cargoes from Ukraine to the rest of the world. Has this interruption affected, or will it affect the market?
At the moment, both from the point of view of the financial prices that from the hire rates, no heavy change has happened. The financial price of wheat, indeed, after the closure of the corridors has continued its way, continuing to swing but without giving signs of a sudden and accentuated growth. The freight market likewise did not suffer from this closure. Of course, the reduction in cargoes ex Black Sea initially marked the period of depression that was being experienced, but in the second measure, since last week, it seems that the Atlantic market is improving.
The list of Handy cargoes in Black Sea / Med has increased considerably, with a substantial decrease in the number of ships in the same area; if today we count about 20 ships (spot basis and for the next two weeks), two weeks ago these were more than 35. Today an “intramed” business basis delivery Canakkale on a 38.000 DWT can reach even the 5 digits of hire. Even for the larger sizes the growth was noticed: on the Ultramax side, if two weeks ago the same route was fixed at around 10.000 USD, today we reach the 14.000 USD.
Good feelings are also felt on the other side of the Atlantic more to the South, where the market has given signs of growth with the TA routes for the big Handies that have touched mid 10.000 USD per day, while the USG is still sleeping, even if we think that is only matter of time to see it rosy again (presumably will grow in mid-September).
As for the paper, yesterday the FFA showed again negative signs, with the Supramax curve falling for the month of October, for Q3 2023 and for Q1 2024, generating perhaps some doubt to the charterers to take period ships.