Turkey’s ban on wheat imports provoked a collapse in freight rates from Russian ports

Turkey’s ban on wheat imports, announced on June 6, is raising concerns about the revival of the Black Sea market ahead of the new grain season, ASAP Agri reports.

Russia and Ukraine have been the main suppliers of grain to Turkey, where the former accounts for about 70% of the country’s total wheat imports. Thus, this cargo flow was also the main driver of the Azov Sea freight market, and the cessation of these supplies provoked a collapse in freight rates from Russian ports.

“According to rumors, since the ban was announced, the freight rates for sea-river vessels from Azov to Marmara have fallen by about $3-5 per tonne. Such a drop in freight rates in the region reduces the income of shipowners operating in Russian ports to what they could get if they were operating in other Black Sea ports,” analysts say.

Freight from the Azov Sea basin has recently remained the most attractive for shipowners in the Black Sea. In June, some Arab companies began to reorient their vessels away from Russian ports amid a significant drop in rates on the Black Sea market.

Due to the collapse of the Azov Sea market, more and more ship owners operating in the region have begun to look for opportunities in alternative Black Sea ports. This trend is causing a noticeable inflow of 3-6 thousand tons to the Black Sea market, thus overshadowing any significant increase in freight rates in the firewood segment with the start of the new season.

Tags: Russia, Turkey, grain, restrictions