Danube Water Levels Plunge Ukraine's Agricultural Exports into Crisis

Ukraine's Danube ports are facing critically low water levels, causing freight rates to rise due to reduced available tonnage. Shipowners are retaining a strong position in the market and demanding high freight rates as a result. The situation is affecting Ukrainian agricultural exports, which rely heavily on the Danube route.

The coaster market from the Danube has somewhat stabilized, with freight rates for corn now largely holding at recent levels of $65-68/t. However, this stability is not expected to last, given the continued strain on capacity due to low water levels and increased demand.

Security risks in Greater Odesa ports are also contributing to the problem, as shipowners are reluctant to call at these locations. This is putting additional pressure on alternative export routes, including the Danube, where capacity constraints are already causing issues for charterers seeking to transport agricultural cargoes.