The cost of freight for ships from Ukrainian Danube ports is increasing due to critically low water levels

The critically low water level in the Danube leads to an increase in the cost of barge freight from Ukrainian ports and limits vessel capacity, which reduces the capacity of the Danube route and slows down the export of agricultural products precisely at a time when it is critically important for the country.

Amid logistical difficulties, shipowners keep freight rates high, which reduces the competitiveness of Ukrainian grain on the world market.

Meanwhile, freight rates for corn have now stabilized after a sharp increase over the past few weeks. According to Atria Brokers, the cost of transporting a 6,000-ton consignment of corn from Ukrainian Danube ports to Egypt is $65-68/ton.

At the same time, there is practically no transportation from the ports of Greater Odessa due to the refusal of shipowners to call at these ports amid significant risks of shelling. This increases the load on alternative routes, including the Danube cluster, the capabilities of which are currently limited by low water levels.