Under these conditions, shipowners maintain a strong market position and continue to insist on high rates. Low water levels are effectively reducing the capacity of the Danube route at precisely the moment when its importance for Ukrainian agricultural exports has significantly increased, according to ucragroconsult.
In the market for shipments via so-called “coasters” (small vessels for coastal routes) from the Danube to deep-water seaports, the situation has stabilized somewhat. Following a sharp rise in freight rates in previous weeks, the pace of growth has slowed, and rates are largely holding steady at current levels.
According to estimates by Atria Brokers, shipping a 6,000-metric-ton shipment of corn from Ukrainian ports on the Danube to ports in Egypt currently costs about $65–68 per metric ton. Thus, high logistics costs continue to put pressure on the competitiveness of Ukrainian grain in foreign markets.
At the same time, there is virtually no shipping market from the ports of Greater Odessa due to high security risks and shipowners’ reluctance to call at these ports. This further increases the strain on alternative export routes, including the Danube, whose capacity is currently limited by low water levels.
