Black Sea Grain Exports Grind to Halt Amid Ongoing Conflict
The Black Sea grain export market has ground to a halt due to ongoing attacks on shipping and ports in Russia and Ukraine. According to Reuters calculations, more than 97% of grain export capacity in the Azov and Black Sea basin has been shut down, cutting off a major source of low-cost supplies and driving up global prices.
The region's two major grain exporters, Russia and Ukraine, together exported an average of 7.2 million metric tonnes of grain per month last season from terminals in the Azov and Black Sea region. However, with Ukrainian seaports in the Odesa port hub effectively ceasing operations at the end of July, no new shipments have been recorded as of mid-August.
Russia's only remaining operational grain terminal is a small facility in Tuapse with a capacity of about 160,000 tonnes per month. Ukraine is redirecting some exports through rail links with Eastern Europe and Danube river ports, but at a significantly higher cost due to longer transport distances.