The first month of operation of the new sea route: grain in focus

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

After Russia’s withdrawal from the grain agreement in July 2023, it seemed that grain exports through Ukraine’s deep-sea ports would not resume soon, but already in August Ukraine announced temporary routes for the movement of civilian vessels. This route was immediately used by several ships, which were already stuck in the ports of Odesa on 24 February 2022. In mid-September, the first ships entered Ukrainian ports to load grain, prompting a positive response from other shipowners, insurers and shippers.

Will the temporary Ukrainian grain corridor succeed in replacing the UN-led grain agreement? In August 2022, 1.66 M mt of grain were exported thanks to the Grain Agreement. Meanwhile, from mid-September to 25 October, Ukraine managed to export just over 600 K mt of agricultural products via this new route. On average, about 3 M mt of grain, oils and meal have been exported each month thanks to the UN-sponsored grain agreement. Therefore, this corridor has not yet become a full replacement for the Grain Agreement, but the prospect of increasing volumes remains.

According to the lineups, taking into account the ships under loading and those that will arrive in the Black Sea ports in the coming days, exports are expected to reach 1.82M mt per month in a few weeks.

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Tags: Ukraine, export, Black Sea grain corridor