Russia: In the 13th week, freight rates in the Azov-Black Sea region continued to rise

Wheat

Russia

Supply Chain Management

Market & Price Trends

Published Mar 28, 2024

Tridge summary

In the 13th week, the Azov-Black Sea region saw an initial increase in freight rates, with wheat transportation costs to the Sea of Marmara hitting $42 per ton. However, this trend reversed mid-week due to a significant drop in grain transshipment volumes in the Caucasus, leading to expectations of decreased freight rates as the conventional fleet availability increases. Additionally, trade with Turkey has been halted. In response to market conditions, Russia plans to raise its wheat export duty to 3,298.6 rubles and barley to 573.3 rubles starting March 27, while keeping the corn export duty at zero.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

At the beginning of the 13th week, the upward trend in freight rates continued in the Azov-Black Sea region. Thus, contracts for the transportation of 3,000 tons of wheat from Azov to the ports of the Sea of Marmara were concluded at $42 per ton. The grain cargo trade was active, but a reverse trend has been observed since the middle of the week. As a result of a sharp decline in grain transshipment volumes in the Caucasus, the market expects the release of more conventional fleet, which, according to the expectations of many charterers, should again lead to a drop in freight rates. In addition, trade to Turkey has been suspended. At the same time, the duty rate on wheat exports from Russia will increase to 3,298.6 rubles from March 27, the ...

Source: Zol