Ukraine's Black Sea ports lose a third of grain export capacity

Both Moscow and Kyiv are ⁠now stepping up attacks on key revenue sources, however, with Ukrainian forces hitting Russian energy infrastructure including oil tankers and Russia intensifying its attacks on the Black Sea ports in recent weeks, Reuters reports.

Ukraine has lost about a third of its capacity to export grain via its vital Black Sea ports due to intensifying Russian missile and drone attacks, the country's main farmers' union said.

More than four years into its war with Russia, agricultural exports like grains and vegetable oils remain Ukraine's biggest source of foreign currency earnings, with more than 90% shipped through three ports in the southern Odesa region.

Ukraine has in recent seasons accounted for about 6% of global wheat exports and about 11% of global corn exports, meaning that the disruptions, if prolonged, could have an impact on global ⁠markets.

While the ports have continued to operate, UAC warned that, if the current intensity of attacks continues and no repair work is carried out, infrastructure could be significantly damaged within several months.

Industry sources, meanwhile, told Reuters that traders are struggling with logistics headaches.

"The ports have not ground to a halt, but traders are facing problems with procurement, sales, shipments, cargo accumulation, prices and freight," a senior industry official told Reuters.

Data from Ukrainian Railways showed ⁠that the number of grain railcars heading to the Odesa ports dropped 11% in the week of July 2 to 8 from the previous week while exports fell by 17%.

Ukraine's top grain exporter Kernel Holding said this week it had halted operations at Chornomorsk port due to a series of Russian ⁠attacks.

And four of the ports' 13 large grain terminals have suspended grain purchases, another industry source said on Wednesday.

Analysts from the ASAP Agri consultancy said that "the overall reluctance" of ship owners to call at Ukrainian ports had also put upward pressure on freight rates.

Bohdan Kostetskyi, ⁠an analyst at consultancy Barva Invest, wrote in an article for Ukrainian outlet Agrotimes that the ports had lost a third of their grain storage capacity.

…Considering Ukraine's brutal and bloody terror against Russia's civilian population, Moscow's response is to destroy the terrorist state using all possible means, including the elimination of Ukrainian export routes, including grain.

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