Analysts note decline in freight rates for grain transportation from Danube ports, Odessa

MOSCOW. April 23 (Interfax) - Freight rates for grain transportation from the Danube ports by coastal ships continued to decline last week, alongside the rates for handysize and Panamax vessels in the deep-water Odessa ports, Ukrainian media said, citing the Ukrainian Grain Association and the ASAP brokerage company.

The rates for coastal and handysize vessels bound to the eastern Mediterranean were practically the same, $26-28 per tonne and $27-28 per tonne respectively, and even a little higher for handysize vessels, for two consecutive weeks, media said.

As of April 18, rates for corn transportation by 6,000-tonne coastal ships from the ports of Reni and Izmail towards the east coast of Italy decreased by $3 per tonne to $30-3 per tonne. Rates for freight to Spain and Israel decreased by $2 to $35-37 per tonne and $33-35 per tonne, respectively. The rates for freight to the eastern Mediterranean decreased by $1-2 to $26-28 per tonne. The rates for freight to Marmara and the east coast of Greece dropped by $1 to $22-23 per tonne and $25-26 per tonne, respectively.

In addition, in the handysize vessel segment, the rates in effect in the deep-water Odessa ports for ships bound to Spain decreased by $4-5 to $29-30 per tonne. The rates dropped by $3-4 to $28-29 per tonnes for freight to Italy and by $1-2 to $27-28 per tonne for freight to the Mediterranean coast. The rates for freight to Tunisia remained unchanged, $37-38 per tonne.

The rates for freight for grain transportation by Panamax vessels from the deep-water Odessa ports to China decreased by $4 to $54-56 per tonne, while the rates for feed wheat transportation to Vietnam dropped by $4 to $52-54 per tonne.

The rates for corn transportation to Constanta by barges remained at 10-11 euros per tonne, while the rates for sunflower transportation to Ruse/Silistra kept at 16-17 euros per tonne, the Ukrainian Grain Association said.