Ukrainian Danube Freight Rates Climb on Sulina Canal Delays

Freight rates for Ukrainian Danube river ports have risen over the past week due to increased delays at the Sulina Canal, according to ASAP Agri consultancy. The canal, a crucial route to Ukrainian river ports, has faced disruptions, with shipping suspended in late September because of poor weather conditions. As of October 5, 80 vessels were expected to enter the canal, while around 40 were set to exit, said shipping company Avalon.

Ukrainian grain shipments have been rerouted to Danube river terminals after seaports, which previously handled 90% of grain exports, were blocked by Russian missile and drone attacks since late July. The canal reopened on October 3 for outbound traffic only. The cost to transport one ton of Ukrainian corn to Egyptian ports climbed to approximately $105.

Uncertainty over passage times has made it challenging for vessel owners to plan voyages. Owners with ships already in the Black Sea or Mediterranean are quoting higher rates for new shipments to account for the risk of prolonged waiting at Sulina. APK-Inform consultancy reported that weekly grain exports from Ukrainian Danube ports fell by nearly 29% to 132,200 tonnes in the week ending September 23.