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Russian River Shipping Information for the Week 31
In the 31st week, prices for FOB wheat in the Black Sea region slightly decreased. The reasons were the appearance on the market of grains from the Central region of the Russian Federation and Ukraine, as well as the depreciation of the ruble, which in a short period allowed traders to conclude contracts until the prices for grains won back. The decline in the grain market was also facilitated by a pause among buyers in Muslim countries, most of whom left for the weekend and suspended purchases on the assumption that the weekend would last until August 4, and everyone would return to active activity at the end of the 32nd week. However, despite the lengthy Muslim holidays, the market did not respond with a decline. Work continued on the already concluded contracts, and there was no large amount of tonnage in the spot without cargo. Thus, the market is rather on the side of the Ship-owners.
Last week, the demand for tonnage for coastal shipments increased noticeably on the part of Charterers. Most of the requests were from the middle Volga, both in the northern and southern directions. The rates reacted to this with quite strong growth. For example, from Ulyanovsk to St. Petersburg they gave about ₽1500-1600 per ton, and to the Caucasus from Samara they were ready to pay about $ 30. Due to the low water level, a significant part of the fleet cannot operate at full cargo, and transportation from the river is quite expensive. The shipowners of motor ships of the “Omsk” type, realizing their advantage, give high rates. This has led to a situation where the already scarce fleet becomes even more inaccessible to Charterers, which is why there are few open positions. Traders try to get to Azov or Rostov.
In the Caspian region, due to Muslim holidays, the lull in shipments of grain crops continues. Activity was observed only in domestic Russian shipments from river elevators towards St. Petersburg, Astrakhan, Azov and Rostov. Traders believe that the 33rd week will be followed by a jump in grain prices, which will accelerate the freight market. In the meantime, all shippers are waiting for good purchase prices from Iranian buyers. After August 15, the warehouses will receive a new crop of corn, which will also affect the price market.
PDF Information Glogos-Freight-Report-Week-31
