The situation has improved slightly for the owners of small-tonnage fleet in the Baltic and North Seas in mid-November. They have managed to raise the rates for shipments on most routes by €0.5-1/t on average. At the same time, the export volumes of main cargoes have not changed significantly so far. Market participants report only a slight increase in shipments of fertilizers and grain from the regional ports. The rates’ growth has been primarily caused by worsening weather conditions in the basin. There is no shortage of vessels in the spot market, though the charterers are increasingly facing difficulties signing the deals at attractive rates.

As expected, the closure of navigation on inland Russian waterways has not affected the regional freight market significantly. The cargoes exported from Russian river ports have been partly redirected to the ports of the Gulf of Finland (Vyborg, Ust-Luga, St. Petersburg).

Carrying 6,500 t of steel from St. Petersburg to the ARA ports is negotiated at €13-13.5/t. A 4,800 t cargo lot from Tallinn to Algeria has been fixed at $38/t. The deal for transportation of a small lot of nonferrous metals (about 2,000 t) from St. Petersburg to Rotterdam has been signed at €19.75/t. Shipping 3-4,000 t of steel products from St. Petersburg to the ARA ports may cost €17-18/t. A 3,000 t cargo lot from Kaliningrad to Sweden has been fixed at €13.75/t. A 2,000 t lot of wood pellets from Viborg to Denmark has been fixed at €18/t. The deal for transportation of 3,000 t of steel scrap from St. Petersburg to northern Spain has been signed at €28/t. Carrying 3,000 t of minerals from Riga to Rotterdam is quoted at €19/t. The contract for shipment of 4,000 t of fertilizers from Klaipeda to southern Spain has been concluded at €26.5/t. A 2,000 t lot of fertilizers from Gdansk to Sweden has been fixed at €11.5/t. A 3,000 t lot of salt is exported from Klaipeda to Tallinn at €7/t. The charterers are ready to pay €35-36/t for transportation of 4,000 t of grain from the lower Baltic to Turkey. The deal for shipment of a similar lot of maize from Szczecin to the ARA ports has been signed at €16/t. The contract for transportation of 4-5,000 t of maize from Kaliningrad on the same route is negotiated at €17-18/t. A 4,000 t lot of grain from the east coast of the UK to Seville has been fixed at €18.5/t. Carrying 3,000 t of rapeseed from Rouen to northern Spain is negotiated at $24-26/t. A 2,800 t lot of alumina from northern Spain to Klaipeda has been fixed at €16/t.

The shipowners will most likely continue to raise the freight rates in the basin next week. Market participants expect the cargo flow from the regional ports to perk up in the coming weeks, as major players are going to close their annual contracts. As a result, the rates may go up further in the Baltic and North Seas.

Average round voyage TCE (given backhaul leg in ballast), $/day

Spot/ppt freight assessments on main trade routes ex Baltic Sea ports

Terms FIOS 1/1;

* - per m3

Spot/ppt freight assessments on main trade routes ex North Sea ports

Terms FIOS 1/1;

* - per m3.