Security risks and Sulina Canal closures complicate shipments from Danube ports

The freight market in the Black Sea and Danube regions remains under pressure due to security risks and navigation restrictions. New attacks on merchant vessels and frequent suspensions of navigation through the Sulina Canal due to adverse weather conditions are complicating voyage planning and limiting shipping activity. According to ASAP Agri, the number of new freight deals remains low, while shipowners continue to insist on high freight rates.

Additional challenges persist in the barge segment. Despite the resumption of navigation near kilometer 280 of the Danube, vessel draft restrictions remain in place. This limits barge loading capacity and contributes to a shortage of available tonnage, strengthening shipowners’ positions in negotiations over new shipments.

According to estimates from the freight department of Atria Brokers, the cost of transporting a 6 thsd ton cargo of corn from Ukrainian Danube ports to Egypt stands at around $100/t. The rate remained unchanged week-on-week but continues to be high for exporters. Significant logistics costs are reducing the competitiveness of Ukrainian grain in international markets.

Further developments in the freight market will depend on maritime security, weather conditions, and the stability of navigation through the Sulina Canal. Continued navigation restrictions and a shortage of available tonnage could limit grain shipments through Danube ports and keep transportation costs high. This is particularly important for Ukrainian exporters using the Danube route as an alternative to Black Sea ports.

Tags: Danube ports