Ukraine is increasing its exports through the Black Sea ports, but the main volumes are currently being shipped to the Danube ports

In September, Ukraine exported 2.4 million tons of agricultural products by sea and river transport, 99% of which passed through Danube ports, Spike Brokers reports on its Telegram channel.

The fleet's shortage of offers for grain deliveries via the new sea corridor keeps freight rates at a high level, in particular, for "handy" freight from the Black Sea to Spain, the rate is $60-65/t. At the same time, the value of the river fleet decreased after the start of the grain corridor.

As of October 5, the rates of transportation from the port of Izmail by water transport were:

• Constanta (Romania) – 40-45 € (1-3 thousand tons),
• Eastern Italy - $65-40 (4-6 thousand tons),
• Greece - $55-57 (3-4 thousand tons).

From the port of Chornomorsk, the transportation rates are:

• Spain – $60 (25-35 thousand tons),
• China - $100 (55-65 thousand tons).

Freight rates for the transportation of grain through the new corridor are now at the level of September 2022, - said the director of BPG Shipping H. Ivanov.

He reported that "at the beginning of the operation of the alternative corridor, the insurance increased to 3% compared to 0.75-1% in May, as all possible risks were included in the rate. A week later, rates fell, and now they have stabilized at the level of September 2022, when the grain deal began to work. In general, the freight market has grown and it cannot now be compared with May. The BDI index rose and the Black Sea became more active due to the start of the grain season."

The restoration of Black Sea ports will activate grain transportation by rail. And agrarians hope that Ukrzaliznytsia will not raise tariffs in order to receive extra profits again, since the transportation of agricultural products remains the most profitable direction of UZ's work.

In 2022, Ukrzaliznytsia took advantage of the force majeure blocking of exports, and farmers paid UAH 4.244 billion last year just for using the state fleet of grain trucks in wartime conditions. in comparison with UAH 1.591 billion. in 2021 and UAH 0.506 billion. in 2020

Agrarians did not expect that during the war a significant part of the funds from the export of agricultural products would remain with logistics companies, therefore, against the background of the increase in the cost of railway transportation and the drop in grain prices, they increased their fleet of grain trucks to independently deliver grain to the ports of the Danube.

Because of this, in 2023 UZ will likely not be able to obtain record financial results from the lease of grain cars and tariffs, and a repetition of the actions that led to the growth of revenues in 2022 will now lead to the loss of a significant share of the freight base and source of income.