Grain freight rates from Ukrainian Danube ports to Egypt rise by $10/t in one week

The cost of shipping corn from Ukrainian Danube ports to Egypt increased by $10/t over the past week to $110/t for cargoes of 6 thsd tons. Higher freight rates reflect worsening navigation conditions on the Danube, increased security risks in the Black Sea and a shortage of available vessels.

Conditions in the Danube freight market continue to deteriorate due to periodic closures of the Sulina Canal caused by adverse weather. These disruptions are creating vessel queues and extending waiting times for passage. Russian attacks on commercial vessels in the Black Sea are adding further pressure by increasing shipping risks and discouraging shipowners from operating in the region.

According to analysts, the number of vessels willing to operate on Danube routes has fallen to a minimum. Shipowners remaining in the market are raising freight rates, while charterers are not always prepared to accept the higher prices. As a result, the gap between charterers’ bids and shipowners’ offers is widening, making it more difficult to conclude new grain freight agreements.

Meanwhile, limited market activity makes it difficult to determine actual freight rates. Price quotations can vary significantly depending on vessel location, tonnage availability and conditions for transiting the Sulina Canal. Indicative coaster freight rates include canal passage and approximately five days of free waiting time.

Conditions in the river transport segment also remain challenging. Draft restrictions on the Danube are reducing the amount of grain barges can carry per voyage, further limiting effective fleet capacity. Together, these factors are increasing logistics costs for Ukrainian exporters and creating risks of further freight rate increases for shipments through Danube ports.

Tags: Danube region, Egypt, grain, grain export, logistics