Ukraine. Challenges of the alternative grain corridor

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

For more than 5 months, the new alternative sea grain corridor has been fully operational. This allows Ukraine to export not only agricultural commodities, but also other goods by sea. In total, during 5 months, Ukraine exported more than 18 M  mt of agricultural commodities by this corridor. In October 2023, the exports by the corridor were only 1.3 M mt, while in February 2024, the shipments increased to 5.16 M mt.

Top agri commodities exported by the alternative grain corridor

• corn – 9.13 M mt;
• wheat – 4.83 M mt;
• sunflower oil  – 0.86 M mt.

In March, the Ukrainian grain sea corridor began to work around the clock. This will increase the intensity of shipping and the number of ship calls in the ports of Big Odesa. Grain handling in the Big Odesa ports increases, at some terminals there are queue for unloading of grain and rail wagons jams. The unloading in the ports is hindered by repeated air alarms, the port personnel is forced to stay in bomb shelters during the alarms. It has also been raining in the Odesa region for the past few days, which has reduced the grain loading rates onto ships.

Freight rates from deep-sea ports of the Big Odesa are not increasing, despite tensions in the Red Sea, but, on the contrary, are decreasing. The freight for delivery of 27.5 K mt of barley from Chornomorsk to Spain was estimated at USD 34-35/t.

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Tags: Ukraine, sunflower oil, corn, export, wheat, logistics, Black Sea grain corridor