RUSSIA is set to ship a larger share of its grain in small cargoes, traders say, reflecting the growing difficulty of arranging insurance and shipping from the world's largest wheat exporter following the country's invasion of Ukraine, reports London's S&P Platts.
Russia provided just under a fifth of the 195 million tonnes that was imported globally in the 2021-22 marketing year (July-June). Observers expected the country to ship at least two million tonnes of wheat in March, mostly in shipments of 20,000 tonnes or more.
Traders have said that many international owners of larger vessels were unwilling to load cargoes from Russia, while the fleet of Russian-owned bulk carriers is insufficient to fill the gap. Russia only has 30 bulk carriers of more than 20,000 tonnes capacity, one shipping source said.
The March 17 line-up from the three export terminals in Novorossiisk, Russia's main deep water port in the Black Sea, showed 38 parcels due to load from March 3-24, half of which were smaller than 10,000 mt.
For comparison, the 21 parcels from a lineup for early February did not include a single cargo of less than 10,000 tonnes.
'Buyers can only be creative,' said one market participant, who added that multinationals and those that relied on Swiss banks were now out of the market. 'Russian [sellers] are happy to do whatever they can. If not by Panamax or Handysize, then by coaster, train or truck.'
'There is no more market for large cargoes,' another market participant said, pointing to the lack of any bids for Handysize or Panamax cargoes on an FOB basis from Russia.
SeaNews Turkey
Russia provided just under a fifth of the 195 million tonnes that was imported globally in the 2021-22 marketing year (July-June). Observers expected the country to ship at least two million tonnes of wheat in March, mostly in shipments of 20,000 tonnes or more.
Traders have said that many international owners of larger vessels were unwilling to load cargoes from Russia, while the fleet of Russian-owned bulk carriers is insufficient to fill the gap. Russia only has 30 bulk carriers of more than 20,000 tonnes capacity, one shipping source said.
The March 17 line-up from the three export terminals in Novorossiisk, Russia's main deep water port in the Black Sea, showed 38 parcels due to load from March 3-24, half of which were smaller than 10,000 mt.
For comparison, the 21 parcels from a lineup for early February did not include a single cargo of less than 10,000 tonnes.
'Buyers can only be creative,' said one market participant, who added that multinationals and those that relied on Swiss banks were now out of the market. 'Russian [sellers] are happy to do whatever they can. If not by Panamax or Handysize, then by coaster, train or truck.'
'There is no more market for large cargoes,' another market participant said, pointing to the lack of any bids for Handysize or Panamax cargoes on an FOB basis from Russia.
SeaNews Turkey