Port blockade could increase pressure on Ukraine’s grain storage facilities — opinion

Agroholding Agrein says it is closely monitoring the export logistics situation and is relying on a diversified transportation strategy. The company emphasizes that it does not depend solely on the deep-water ports of Greater Odesa, but also uses rail, road and Danube routes to export agricultural products.

Vitalii Shtempel, Director of Economics and Finance at Agrein, said the company currently sees no critical risks to fulfilling its export programs, although alternative routes cannot fully replace deep-water ports. According to him, the capacity of Danube terminals and border crossings is limited, while transportation through these routes is more expensive and takes longer.

The company has already recorded higher logistics costs as part of cargo flows are being redirected to railways, trucks and Danube ports. If disruptions at deep-water ports last only several days or weeks, Agrein expects to offset the impact with its own transport fleet. However, prolonged restrictions could increase logistics costs by dozens of percent.

Agrein also says its grain storage facilities have sufficient spare capacity to receive the new harvest. Since the company has almost no carry-over grain stocks from the previous season, it has enough storage space to temporarily hold grain if shipments are delayed.

At the same time, if port disruptions continue for several weeks, pressure on grain storage infrastructure will increase significantly. In that case, the company plans to expand the use of alternative logistics routes and, if necessary, temporary on-farm storage sites. For now, Agrein describes the situation as being under control.

Tags: Ukraine, export, grain, grain storage, restrictions