Deepwater freight market disappears as Danube rates rise by $3-5/T, ASAP Agri says

The deepwater freight market for Handysize vessels was virtually inactive last week, while freight rates on the Danube increased by $3-5 per metric ton following Russia's deadly missile strike on the grain carrier GOLDEN LEO, according to consultancy ASAP Agri.

Only one Handysize vessel was seeking cargo during the week and raised its freight offer by more than $10/t, while charterers increased bids by around $5/t. No deals were concluded, Kateryna Mudriian, Lead Analyst for the Vegetable Oils Market at ASAP Agri, told Latifundist.com.

Taras Panasiuk, co-owner and head of freight brokerage Atria Brokers, confirmed the assessment.

"One vessel is not enough to reflect the actual market level. At the moment, there is effectively no functioning Handysize freight market. Following the severe damage to the coaster GOLDEN LEO on July 19, we do not expect the Handysize freight market to resume this week unless the situation improves," he said.

The coaster market was more active, ASAP Agri said. Freight rates increased by around $3-5/t compared with previous indications, although pricing remained highly vessel-specific. For example, one shipowner offered a freight rate of $31/t to Egypt on Friday before later seeking a significantly higher level.

The Danube market remains active, with freight rates averaging about $5/t higher than before. Meanwhile, shipments from the deepwater ports of Odesa, Chornomorsk and Pivdennyi remain almost completely suspended.

• On July 19, Russian forces launched a missile strike on the civilian bulk carrier GOLDEN LEO, which was carrying corn. The attack killed 10 people, including a pilot employed by the Ukrainian Sea Ports Authority (USPA). Eight crew members, including Syrian and Indian nationals, were rescued and brought ashore.