Danube Freight Rates Climb Amid Sulina Canal Delays

Freight rates for grain shipments from Ukrainian Danube river ports have risen over the past week due to increased delays at the Sulina Canal. ASAP Agri consultancy reported this development, noting that the canal's disruptions have pushed up costs for transporting Ukrainian corn to Egyptian ports to around $105 per ton.

The Sulina Canal, a critical route for Ukrainian river ports, was reopened on October 3 for outbound traffic only. As of October 5, 80 vessels were expected to enter the canal, while around 40 were set to exit. Shipping company Avalon had previously stated that shipping on the canal was suspended in late September due to poor weather.

Ukrainian grain shipments have been rerouted to lower-capacity Danube river terminals after seaports, which previously handled 90 percent of grain exports, were blocked by Russian missile and drone attacks since late July. The uncertainty over passage times has made it difficult for ship owners to plan voyages, leading them to quote higher rates for new shipments to account for the risk of prolonged waiting.

APK-Inform consultancy reported that weekly grain exports from Ukrainian Danube ports declined by almost 29 percent to 132,200 tonnes in the week ending September 23. No more recent statistics were provided.