Grain Trade Disruptions Threaten Global Food Prices

UN Secretary-General António Guterres warned that maritime chokepoints must never become instruments of coercion. He emphasized that delivery of food, energy, and essential goods should not be impeded.

Dry bulk owners are facing more challenges amid grain trade disruptions. The conflict between Russia and Ukraine has severely impacted wheat exports from the Black Sea region. In August 2025, Russia and Ukraine exported 6.3 million tonnes of wheat. However, this month, exports are unlikely to exceed 2.5 million tonnes.

The fertilizer shipments out of the Arabian Gulf have almost come to a halt since the US/Israel attack on Iran and the closure of the Strait of Hormuz. This has significant implications for food prices worldwide. About 25% of global fertiliser trade passes through the Strait in normal times, with much of it bound for Africa.

The shortage of grain cargoes could lead to owners switching out of the normally lucrative grain trades into other bulk cargoes. This would have serious consequences for global food prices.