Kazakhstani linseed may face higher logistics costs when exported to the EU

Disruptions to grain exports through the Azov-Black Sea ports and the diversion of some Russian cargoes to the Baltic could increase logistics costs for Kazakh linseed exporters. Kazakhstan’s Grain Union expects stronger competition for rail and port capacity along routes to Europe.

The redirection of Russian grain could increase congestion on northwestern rail routes and at Baltic ports. For Kazakhstan, alternative shipments through Belarus and Lithuania will be more expensive, potentially raising the final cost of linseed deliveries to the EU.

Meanwhile, linseed prices in Kazakhstan are declining amid a seasonal increase in supply. Over the past week, EXW prices fell by KZT 5,000 to KZT 195,000–200,000/t ($427–438/t), while FCA Kazakhstan export prices declined by $5 to $460–465/t.

Prices on European routes have remained stable so far. Brown linseed on a DAP Poland basis is quoted at €520–525/t, while September shipment contracts to Northwestern Europe are assessed at $605–610/t C&F. However, a further increase in transportation costs could make Kazakh linseed more expensive for European buyers.

As a result, Black Sea logistics disruptions could have repercussions well beyond the region itself. The diversion of Russian agricultural cargoes to alternative routes is putting additional pressure on Baltic ports and overland corridors also used by other exporters, including Kazakhstan.

Tags: linseed, logistics, Kazakhstan, EU