Ukrainian grain export costs rise due to Black Sea port blockades

The blockade of Ukrainian Black Sea ports is significantly increasing export costs, with the financial burden falling largely on agricultural producers. According to the Ukrainian Agribusiness Club, rerouting exports through the Danube, railways, and European ports adds between 50 and 90 euros to every ton transported.

Because Ukrainian grain must compete globally with products from the US, South America, Australia, and the EU, these additional costs cannot be fully passed on to international buyers. Consequently, farmers are forced to absorb much of the price increase.

Alternative corridors face their own logistical hurdles. In the ports of Reni and Ismail, coastal vessel availability is limited, and congestion at the Sulina Canal has extended voyage durations. At one point, over 50 ships were waiting to pass through the Sulina Canal, while only 5 to 7 ships could be directed to Danube ports per day. These delays cost shipowners between 5,000 and 8,000 dollars per day.

Shipping costs have risen sharply on short routes to the Sea of Marmara and eastern Greece, while costs to the eastern Mediterranean, Italy, and Spain have increased by 20 to 25 dollars per ton. Other challenges include a shortage of qualified captains and officers for Danube navigation, fluctuating water levels, and limited terminal capacity.