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Azov Sea freight market softening


Following some uncertainty in early December, ISM sources report a clear downward trend in the Azov Sea freight market at the moment. According to most brokers, whereas the charterers regularly enter the market with cargoes, they do manage to lower the rates. Deals for transportation of 3,000 t of wheat from Azov to TBS are mainly negotiated at $38-40/t. Few owners succeed in getting very low $40s/t on the above route. Some charterers are even trying to insist on more bold freight ideas, market participants say. At present, some traders offer only $40/t for shipment of 3,000 t of grain from Rostov to the Marmara Sea. 2,7-3,000 t of bran (sf 55`) are shipped from Azov to Samsun at $40/t. Brokers suggest that shipment of 3-5,000 t of wheat from Azov to Mersin now costs low-mid $50s/t. A 3,000 t lot of scrap is now moved from Rostov to the Marmara Sea at $50/t. Coal exporters offer $27-29/t for transportation of 3-5,000 t of coal from Azov to the Marmara Sea.

Note that Azov Sea ports started to charge ice dues from December 11.

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