Sulina Canal delays add around $10/t to Danube freight costs

Waiting times for vessels to pass through the Sulina Canal currently reach around 10 days, potentially adding approximately $10/t to freight costs. This was reported by Avalon Shipping Operations Manager Kateryna Kononenko.

For a vessel with a deadweight of around 6,000 tons, demurrage is estimated at $5,000–7,000 per day. On a per-ton basis, each additional day of waiting effectively adds about $1/t to transportation costs.

Therefore, a 10-day queue could add around $10/t, while a 20-day wait could increase costs by approximately $20/t. For a 5,000-ton cargo, 20 days of idle time could result in around $100,000 in additional costs.

Previously, charter parties typically allowed two free waiting days, while some demurrage costs could be offset by faster loading or unloading. However, with current queue lengths, this mechanism is no longer sufficient to significantly reduce the additional costs.

As a result, delays at the Sulina Canal are becoming a separate component of freight costs for shipments via the Danube. The longer vessels have to wait for passage, the greater the impact of demurrage on overall cargo logistics costs.

Tags: logistics, freight rates, freight costs, Sulina Canal