Caspian route for Russian grain faces vessel shortage and high freight costs

The Caspian route, which Russian exporters are increasingly using to redirect grain shipments, is facing a shortage of vessels and a sharp rise in transportation costs. By late September, freight rates for grain shipments from Astrakhan to Iran on river-sea vessels had climbed to $110–115/t, up 2.3–2.4 times year on year.

In September 2025, freight on this route stood at around $47/t, while in late July 2026 it was only $39/t. The main drivers of the increase are a sharp rise in cargo flows through the Caspian, limited fleet availability and difficult navigation conditions on the Volga River.

Grain flows to Iran have increased significantly amid restrictions in the Azov-Black Sea basin. In January-August 2026, Russia shipped 2.4 mln tons of grains to Iran via all routes, up 70% year on year. Grain transshipment through the ports of Astrakhan and Olya doubled over the same period to 2.2 mln tons.

At the same time, the capacity of the Caspian route remains constrained. Due to low water levels on the Volga, vessels can only be loaded to 70–80% of capacity. The shortage of tonnage is also aggravated by the fact that the Caspian is a closed basin, making it difficult to quickly redeploy additional vessels from other seas. Shipowners are factoring delays and navigation restrictions into freight rates.

Rising logistics costs are hitting grain exports the hardest, squeezing traders’ margins and weakening the competitiveness of Russian grain on the Iranian market. Further growth in cargo flows could intensify the vessel shortage, especially ahead of the end of the Volga river navigation season.

Tags: Iran, Russia, export, grain