Corn freight rates from Ukrainian Danube ports to Egypt rise to $120/t

The cost of shipping corn from Ukrainian Danube ports to Egypt continues to increase amid vessel shortages and logistics constraints. Over the past week, freight rates for a 6 thsd ton corn cargo rose by $10/t to approximately $120/t. The figures are based on assessments by the freight department of Atria Brokers.

Shipping conditions at Ukraine’s Danube ports remain challenging due to significant vessel congestion in the Sulina Canal and elevated war-related risks in the Black Sea. These factors are limiting the number of shipowners willing to operate from Ukrainian ports and restricting available vessel capacity.

Amid tight vessel availability, shipowners continue to insist on higher freight rates. At the same time, a significant gap remains between shipowners’ rate expectations and charterers’ offers, making it difficult to conclude new contracts. With only a limited number of confirmed fixtures, establishing the current market freight level remains challenging.

Shipping costs depend heavily on the specific conditions of each voyage, including vessel location, arrival timing and the ability to transit the Sulina Canal. Prolonged waiting times for canal passage increase shipowners’ operating costs and put additional upward pressure on freight rates, particularly for smaller grain cargoes.

Freight rates in the barge segment are also rising due to strong demand and limited available tonnage. Additional difficulties stem from draft restrictions on the Danube, which affect vessel loading capacity.

Tags: Ukraine, Egypt, corn, freight, Danube region