Vessels Pile Up at Sulina Canal as Ukraine's Grain Exports Face Further Delays

Up to 70 vessels are waiting near the Danube's Sulina Canal in Ukraine for access to load grain for export, due to a shortage of pilots and priority given to other cargoes. This has led to long delays, as only two to three vessels per day can move towards Ukrainian ports.

The situation is further complicated by frequent air raid alerts that force the suspension of all port operations. Ukraine relies heavily on grain exports, which can drive up global prices if disrupted. In fact, disruptions have already driven up costs, with each day of delay estimated to cost up to $8,000 in addition to high freight rates.

The consultancy ASAP Agri noted that more than 50 vessels were waiting to pass through the Sulina Channel as of August 25, while only five to seven vessels per day were moving towards Ukraine's Danube ports. Katerina Kononenko, operations manager at Avalon shipping, warned that poor weather could worsen the situation.

Ukraine's reliance on Danube ports has increased since Russia blocked the country's Black Sea ports, which handled 90% of its grain exports. While export volumes via the Danube remain below pre-war levels, they are slowly increasing. In August, grain transport volumes to Danube ports were 11 times higher than in July.