Freight rates for grain shipments from Ukraine’s Danube ports continue to rise. In the coaster segment, rates have accelerated again as the queue for passage through the Sulina Canal has increased significantly, according to ASAP Agri.
Around 70 vessels are currently waiting to pass through the Sulina Canal. Due to prolonged delays, shipowners are raising their freight rate expectations in an effort to compensate for additional costs and risks.
At the same time, charterers are finding it increasingly difficult to secure suitable coaster vessels, as available tonnage remains extremely limited and rates offered by shipowners continue to rise.
According to estimates by Atria Brokers, the cost of shipping a 6,000-tonne cargo of corn from Ukraine’s Danube ports to Egypt has increased by around $9 per tonne to $75–77 per tonne.
Barge freight rates also continue to rise. Tonnage availability is being constrained by exceptionally low water levels on the Danube, strengthening shipowners’ position in negotiations with charterers.
