Black Sea maritime risks drive up wheat prices and insurance costs

Increased maritime attacks in the Black Sea are disrupting wheat exports and driving up global prices. The European Bank for Reconstruction and Development (EBRD) reports that wheat prices have risen by one-third since February due to the conflict in Ukraine and low Danube water levels.

Maritime risk assessment firm Ambrey has noted a significant rise in incidents, with at least 45 attacks recorded in the region. Consequently, the exclusive economic zones of Romania, Bulgaria, Turkey, and Georgia have been added to high-risk maritime lists. The Joint War Committee, a London-based maritime insurance body, has also designated the Black Sea as a high-risk zone due to threats of hostilities and terrorism.

These developments suggest the conflict is expanding beyond Russian and Ukrainian coastal waters into international waters. This escalation is expected to increase costs for shipping companies through higher insurance premiums and additional crew compensation.