As per Pavlo Lysenko, ASAP Agri freight analyst, Turkish wheat import ban announced on 06 Jun raises concerns about the revival of the Black Sea market on the eve of the new grain season. russia and Ukraine have been the main suppliers of the grain to Turkey, where the first one accounts for about 70% of all wheat imports in the country. Thus, this cargo flow has also been the main driver of the Azov Sea freight market and the stop of these supplies provoked the collapse of freight rates from russian ports. According to the rumors, the freight of sea-river vessels from Azov to Marmara has dropped by about 3-5 USD/MT from the moment the ban was announced. Such sagging of freight rates in the region is narrowing shipowners’ earnings operating from russian ports to those they could get working from other ports in the Black Sea. It is also worth to note that freight rates from the Azov Sea basin have remained the most attractive for shipowners in the Black Sea recently; in June, certain Arab companies started to reorient their vessels to work from russian ports amid a significant rates downturn on the Black Sea market.

Thus, due to the crash of the Azov Sea market more and more ship owners working in the region have begun seeking opportunities from alternative Black Sea ports. This trend triggers a notable influx of 3-6k DWT tonnage on the Black Sea market, thereby, overshadowing any significant freight rates increase in the coaster segment with the start of the new grain campaign.