Grain deal clears one of many hurdles to get Ukraine’s crops to market
The agreement to move Ukraine’s grain may have been signed, but the challenge of moving millions of tonnes from blockaded Black Sea ports is only just beginning.
On Friday, Ukraine and Russia signed a UN-backed deal to allow Ukraine’s wheat, maize and oilseeds to be shipped amid fears over a global food crisis.
But finding vessels and crew available to transport these cargoes is no overnight job.
Shipping companies, as well as grain traders, have welcomed the deal as a positive step, but warned that several obstacles remain, including ensuring the safety of seafarers and vessels, along with securing adequate and affordable insurance to cover the transport.
As a first step, Ukraine’s coastal waters will need to be de-mined, or at the very least a corridor stretching several kilometres will need to be cleared. There have been mixed reports from Kyiv over how long this would take, with estimates ranging from 10 days to several months.
An armada of 400 bulk cargo ships – designed for transporting agricultural goods between continents and each able to hold up to 50,000 tonnes – would be required for transporting the estimated 20m tonnes of grain stuck in Ukraine’s stores.
Shipping analysts estimate it would take a couple of weeks for vessels to be re-routed to the Black Sea. This depends on the availability of ships in nearby areas, such as the Mediterranean, according to Peter Sand, chief analyst at freight market analytics firm Xeneta.
More than 100 ships have been unable to leave Ukraine’s ports since the start of the conflict, the majority of which are thought to be bulk cargo vessels.
However these may not be immediately able to set sail, according to Guy Platten, the secretary general of the International Chamber of Shipping.
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