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Black Sea Watch: Weekly Ukrainian seaborne grain flows recuperate, members cautious

highlights

Jan. 16-22 grain flows almost double on week

Contributors deal with easing freight charges and movement disruptions

Common weekly cargo at file highs since hall reopening

Seaborne Ukrainian grain flows by the Black Sea jumped throughout the week Jan. 16-22, with volumes up 82% on the week to achieve 893,874 mt, and the typical cargo dimension now trending on the highest ranges for the reason that inception of the protected passage settlement , an evaluation of UN’s Black Sea Grain Initiative Joint Coordination Middle information by S&P International Commodity Insights proven Jan. 23.

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“No enchancment, vessels in Odessa, Chornomorsk, Yuzhny will not be transferring sooner than earlier than — massive delays on the JCC,” mentioned a chartering dealer from the area. Electrical energy [at the port] is given in sure durations of time per day, as an example 0900-1200 in, and thereafter 1200-1600 out, nevertheless it’s all the time totally different.”

The UN-brokered Black Sea Grain Initiative — signed final July by Russia, Ukraine and Turkey and renewed in November for an additional 4 months beginning Nov. 19 — enabled the resumption of exports of grains and different foodstuffs from the three key Ukrainian ports of Chornomorsk, Odesa and Yuzhny/Pivdennyi on the Black Sea, with cumulative grain shipments underneath the protected passage deal reaching over 18.33 million mt as of Jan. 22, based on JCC information.

Market sources reported that the typical ready time has been hovering near 4-5 weeks for inbound shipments, and about 7-10 days for outward vessels.

Spot freight charges for Handysize vessels for Ukraine-to-Egypt journeys have been heard to pattern close to $38.50/mt and nearer to $37/mt for shipments headed to Mersin-Iskenderun, a charterer mentioned.

Freight charges for Handysize vessels headed to the Spanish Med. have been reported nearer to $43/mt with 10 days free at Bosporus.

“Common age of vessels is means above 10 years and nonetheless primarily a Handysize dimension,” a ship-operator mentioned, explaining that “Black Sea may be very discouraging as charges maintain falling and the premium for the hall is dwindling.”

Supramax vessels compete on Handysize cargoes to do enterprise there at very low charges; Time constitution charges for Supramax vessels have been seen between $7,000/d-$8,000/d whereas for they trended close to the $6,000/d-$7,000/d vary for Handies, a charterer mentioned.

Based on the JCC, the variety of inspection groups stays at three, with plans to conduct 9 inspections on Jan. 23, 4 on inbound vessels and 5 on outbound vessels.

“At present, 35 vessels are ready for inspection: 5 of them ready to maneuver into Ukrainian ports and 30 loaded with cargo ready to sail to their international locations. 85 purposes for participation within the Initiative have been submitted,” the JCC mentioned Jan. 22 .

Common cost dimension hits contemporary file excessive

Along with a considerable restoration in weekly grain flows, the typical cargo dimension for the week Jan. 16-22 pushed by the earlier file of 41,414 mt throughout the week Dec. 19-25 to achieve 47,046 mt, additionally leaping by over 82% on the week, JCC information confirmed.

The most important cargo noticed throughout week 3 was a 74,904 mt cargo of wheat headed to Spain aboard the 2019-built, 82,000 dwt Star Sapphire, which departed from the terminals of Yuzhny/Pivdennyi Jan. 19.

Out of the almost 894,000 mt grain flows throughout the interval Jan. 16-22, virtually 47% is headed to high-income locations, with a further 45% set for upper-middle-income international locations, virtually 5% headed to lower-middle -income locations and a 3% portion on its strategy to low-income markets, based on JCC information.

Europe and Central Asia accounted for the lion’s share of the flows throughout week 3, rising their portion to 57% from 51% throughout week 2, with the East Asia and Pacific area attracting almost a 3rd of all shipments throughout the interval Jan. 16- 22, in contrast with 27% the week prior.

The remaining flows have been seen headed to South Asia, Sub-Saharan Africa, in addition to Center East and North Africa, based on JCC information.

The share of corn shipments elevated to 47% of the entire weekly flows throughout the interval Jan. 16-22, compared to 43% throughout the earlier week with wheat now accounting for over 32%, up from 20% the week prior, and rapeseed over 10%, information from the JCC confirmed.

Barley and sunflower merchandise accounted for the remaining.

Platts is a part of S&P International Commodity Insights

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