Increase in grain harvest in Romania may limit Ukraine’s transit capacity

UkrAgroConsult

An increase in Romania’s grain harvest this year may limit the space for Ukrainian shipments through the Black Sea port of Constanta, which has become Kyiv’s main transit hub since the Russian invasion.

After Russia blocked its Black Sea ports in February 2022, Ukraine found alternative export routes through neighboring European Union countries, Reuters reports, citing port operator Comvex.

Despite the “grain corridor,” Romania’s Constanta remains the largest alternative shipping route for Ukraine. Almost one-third of Ukraine’s grain exports since the Russian invasion have passed through this port, i.e. 8.6 million tons in 2022 and 3.3 million tons in the first quarter of this year.

Shipping through Constanta was cheaper than shipping through Ukraine’s own ports under the Safe Passage Agreement, as long inspection lines in Istanbul increased costs.

The publication reports that this year’s grain harvest in Romania may be larger than last year. Romania, one of the largest grain producers in the EU, will harvest 10.35 million tons of wheat this year, a sharp increase from last year, as agricultural strips recover from drought, according to consulting firm Agritel.

“New plantings in Romania look set to be larger than last year, which means there may be less room for Ukrainians. The operators will not harm their traditional customers,” said Viorel Panait, Comvex manager.

He emphasized that better management of truck traffic and reduction of congestion in the port could save the situation in the absence of new capacities.

Ukraine started exporting corn through the Romanian port of Constanta on April 28 last year.

Later, the Ukrainian Danube Shipping Company expanded container transportation from Danube ports to the Romanian port of Constanta. At the end of May 2023, a container caravan consisting of the self-propelled vessel Captain Shirkov and five barges with a total capacity of 300 TEU was formed in Izmail for the first time.

Tags: Ukraine, export, grain, Romania, logistics, crop forecast