Danube Drought Complicates Ukraine's Grain Exports Through Romania

Russian attacks on Ukrainian ports are forcing grain shipments to be rerouted through Romania, but record-low water levels in the Danube River are complicating this route.

The low water levels, caused by heat and lack of rainfall, mean ships must carry smaller volumes, increasing the cost of river transport and resulting in additional expenses and delays for road and rail logistics.

Viorel Panai, president of the Constanta Port Business Association and CEO of the grain terminal operator Comvex, noted that his terminal could handle 20% more cargo within the 'Paths of Solidarity' project with Ukraine. However, he said the Danube ensures the flow of cargo to the terminal, and 'the fact that there is not enough water affects the amount of grain arriving.'

The situation has worsened amid high energy prices and disruptions in global trade due to tensions in the Middle East. Last month, wheat and corn futures rose sharply on the Paris and Chicago exchanges.