Black Sea grain exports in the conditions of growing freight rates


The end of the current year features a rather sharp rise in freight rates. This affects the competitive position of grains from different regions depending on the end market.

Regarding the Black Sea region, we cannot say that the freight rate increase considerably impacts the volume of grain exports there. Despite the jump of freight tariffs, grain exports remain at a high level for all of the destinations.

Undoubtedly, Egypt is an important destination for Black Sea grain and remains its major buyer this season. In the first five months of the current season, Ukraine supplied 15% more wheat to Egypt than at the same time a year ago. Russia stepped up exports by more than 30%.

However, this season’s breakthrough for Black Sea grain is Indonesia. Will Black Sea grain remain competitive in the Asian market in case of the freight rate behavior?

Full version of the article is available to subscribers for weekly market report “Black Sea Grain” and “Online market review” by UkrAgroConsult.



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