News Europe The lack of ships due to the high risk reduces the effectiveness...

The lack of ships due to the high risk reduces the effectiveness of the Ukrainian grain export corridor

Merchant ship with grain departing from Ukrainian Black Sea ports – Pavlo Gonchar/SOPA Images via ZU / DPA

The opening of a corridor for the export of Ukrainian cereals from the Black Sea ports has brought relief to the global food market, but there are still several problems to solve to get the millions of tons still blocked, such as the lack of companies that allocate ships to visit Ukrainian ports.

The mines placed by the Ukrainians themselves to prevent a Russian invasion by sea are one of the factors that have caused transport rates to skyrocket, according to sources in the merchant sector cited by Bloomberg.

“The price of insurance is very high and without the help of any government they are difficult to find. It could be a problem for the acceleration of exports,” said Benoit Fayaud, an analyst at France’s Strategie Grains.

The first ship covered by the agreement between Russia, Turkey, Ukraine and the UN was the ‘Razoni’, which transported 26,527 tons of corn to Lebanon. Three other ships left Ukrainian ports on Friday and two more are headed from Turkey to Chornomorsk to pick up cargo.

In total, they would add 85,000 tons of exports in a week, a symbolic start that represents less than 8 percent of Ukraine’s usual exports at this time of year. It is also being exported by road and rail, but in much smaller quantities than can be achieved by sea.

For the co-founder of the Greek Doric Shipbrokers Vasilis Mouyis, “the getne is waiting to see if it gets back together.” “Things will start to pick up pace next week”, he has pointed out, while he has speculated on new Ukrainian shipments to Egypt, Turkey, China, Italy or Spain.

Insurance offers policies for between 1 and 5 percent of the value of the ship, according to industry sources cited by Bloomberg. In the rest of the areas the percentage never reaches 1 percent.

Added to this is the need for technical reviews of ships stranded in ports such as Odessa, Chornomorsk and Pivdennyi, which have been idle for months.

“There will be exports through the Black Sea ports, but not many. Not as many as before,” Fayaud warned. “It will take a long time for new ships to be loaded,” he stressed. The war alone caused a two-thirds drop in grain exports.

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