- What’s new on Danube
There will be additional anchorage area for the Ukrainian grains in Constanta port.
Romanian side recently announced that tender for the works has been finalized. The project was initiated by the Ukrainian Danube Shipping last year, when Constanta port terminals faced lack of facilities for handling of Ukrainian grains, with up to 600 laden barges waiting for discharging for 30-40 days. Since then, most export
volumes relocated to the ports of Big Odesa; however, Danube region remains popular and being a reserve logistic hub it has to be supported and developed.
- Local Insurers’ view on agricultural risks
Representative of one of the leading Ukrainian Insurance Companies shared their view on current situation on the risks faced by the local agricultural business.
Major risks: damage to cargo during the transportation due to long logistic chains, increased transit time and number of handling operations, also lack or low quality of means of transportation and packing.
From the 2nd year of the war local insurers started to offer, though cautiously and in certain limits, coverage from the air attacks for the cargo during land transportation over Ukraine. With such approach the Insurers want to support their customers, at the same time they closely monitor safety situation in the country and level of own losses, with periodical review of possible coverage and premiums. Current war risk tariff for land carriage is 0.2-0.5%. Of course there are exclusions, for example war risks in the areas close to the Ukrainian ports can’t be insured due to frequent attacks.
- Black Sea Ports’ challenges
As reported on 20/05/2024 by Head of Odesa Military Administration, significant part of Odesa Region port infrastructure is damaged.
Currently it’s impossible to accumulate 20-50 thousand tons at the port warehouse to let the ship load it upon arrival.
Major volumes are handled with direct delivery from the trucks, during attacks & air raid warnings. As a result, the vessel stays at the port 3-5 times longer than normal with consequent demurrage.
At present, the Ukrainian sea corridor works 24/7 and sometimes there are 40-50 ships in one convoy.
- Losses due to attack against port Pivdennyi
With earlier update we reported about the Russian attack against the agricultural terminals at port Pivdennyi on 19/04/2024, leading to destruction of agricultural products intended for export to Asian & African countries. Now the ecologists disclosed
the volume of losses:
- 10 tanks belonging to Singaporean company and 10 thousand tons of oil destroyed;
- oil handling terminal damaged;
- over 500 sqm area is contaminated with steel fragments and combustion products;
- over 3000 sqm area is contaminated with oil.
Some photos are attached hereto.
- Container shipments – current situation and perspectives
The container capacity of the Ukrainian port terminals is 3.5 mln TEUs. Before war, in 2021, the container’s turnover was abt 1 mln TEUs. In 2022 via the Danube ports 67667 TEUs were shipped.
At present the turnover is abt half a mln TEU, divided between 2 key hubs – Constanta & Gdansk. Plus, containers which come by land transportation.
Until the war ends big container lines won’t come to Ukraine by own fleet. In view of this, one Ukrainian private logistic company, member of International Association of Forwarders of Ukraine, took a ship on time charter and provides slots for the container lines so that they can ship their containers to & from Ukraine.
Due to Red Sea crisis, there is a risk that in the near future direct container service will end in Med Sea container hubs, hence Black Sea may be not of interest for big container ships. International Association of Forwarders of Ukraine are working on container route between Ukraine and one of such hubs, for example Port Said. In case this initiative becomes workable, freight rates shall go down.
Currently container shipments amount to 0.8% only from the total cargo turnover in Ukraine, and there are plans to increase this figure for 5% per year, depending on market situation and freight rates.