Russia’s decision to halt a deal that allows grain to flow from three Ukrainian ports on the Black Sea (Odessa, Chornomorsk, Pivdennyi) will have serious consequences for the global food market and shipping.
The Kremlin warned on Tuesday that any attempt to transport grain from those ports without security guarantees from Russia poses a risk to safe shipping.
Market executives pointed out that if this situation continues for a long time, it is certain that there will be a jump in grain prices worldwide, while the interest of shipowners to continue sending ships to the region will remain low due to the high prices of insurance, something which will also cause pressures on the shipping market.
Already a large number of general cargo ships are being diverted to other lines, increasing supply and putting pressure on fares.
Russia’s blockade of the Black Sea means that millions of tonnes of grain have been stuck in Ukrainian silos, at risk of rotting, as the new harvest begins in Ukraine and Russia.
At the same time, it is not clear whether Ukraine will be able to find alternative routes to ship Ukrainian grain either through the Black Sea or through the Danube ports, as a Russian missile attack that damaged facilities near the port of Odessa caused intense concerns.
However, according to marine traffic, a large number of dry cargo ships are already off the Romanian port of Sulina in the Danube Delta.
