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Ukraine Successfully Using Coastal Black Sea Export Route

01/29/2024

A combination of aggressive naval action and cooperation from Black Sea neighboring nations is allowing Ukraine to restore export routes for commodities.  Before the February 2022 invasion of Ukraine by the Russian Federation, approximately six million tons of agriculture products were exported each month, principally using the Black Sea route. Following the collapse of the Black Sea Grain Initiative, and attacks on ports in Ukraine, the nation displaying ingenuity and resourcefulness established a coastal route that in December exported 4.8 million metric tons of grains from Black Sea and Danube ports.  Increased volume achieved lower shipping costs approximating $30 per ton. This allowed a proportional rise in the domestic price of corn and wheat, assisting farmers and the economy of the nation. 

 

Ukraine is considering reopening the Port of Mykolaiv and increasing shipments through the Danube Delta with a target of seven million tons of all agricultural products per month. 

 

Despite progress in marine transport, the situation in the southern region of the Red Sea is creating restraints with traffic through the Suez Canal down 45 percent before missile attacks commenced. The majority of exports from Ukraine to China normally pass through the Suez Canal and the Red Sea. The alternative route requiring an extended voyage through the Mediterranean and around the southern coast of Africa adds 10 days and $1 million to a Panamax bulk carrier consignment.