Freight rates from Ukraine’s Danube ports rise amid critically low water levels

Barge freight rates from Ukraine’s Danube ports continue to rise due to critically low water levels. Navigation restrictions are reducing available tonnage and leaving charterers with fewer options for transporting agricultural cargoes.

Under these conditions, shipowners retain a strong position in the market and continue to demand high freight rates. Low water levels are effectively reducing the capacity of the Danube route at a time when its importance for Ukrainian agricultural exports has increased significantly.

Meanwhile, the coaster market from the Danube has somewhat stabilized. Following a sharp increase in freight rates in previous weeks, the pace of growth has slowed, with rates now largely holding at their recent levels.

According to Atria Brokers, freight for a 6 thsd ton cargo of corn from Ukrainian Danube ports to Egypt currently stands at around $65–68/t. High logistics costs therefore continue to weigh on the competitiveness of Ukrainian grain in international markets.

At the same time, the freight market from Greater Odesa ports remains virtually inactive due to high security risks and the reluctance of shipowners to call at these ports. This is putting additional pressure on alternative export routes, including the Danube, where capacity is currently constrained by low water levels.

Tags: Ukraine