Ukraine exported 50,000 tons of products by sea in September – Ministry of Agrarian Policy

In September, Ukraine exported approximately 50,000 tons of goods by sea, including agricultural products, as reported by the First Deputy Minister of Agrarian Policy and Food, Taras Vysotsky, according to "Left Bank" publication.

Currently, Ukraine is in negotiations regarding exporters' access to Baltic ports.

Veterinary, sanitary, and phytosanitary control from the Ukrainian-Polish border has already been transferred to the port of Klaipeda in Lithuania for all agricultural cargo destined for this port. This is intended to expedite transit through Poland.

An increasing number of players in the Ukrainian market are considering the use of alternative maritime corridors for the export of agricultural products.

High demand for maritime freight with limited supply from shipowners has caused the market to start with relatively high rates, according to analysts at Spike Brokers. For instance, spot rates for Handymax-class vessels from the Black Sea to Spain were approximately $60 per tonne as of the end of September 2023. Meanwhile, the freight rate for Panamax vessels from the Black Sea to China is reported to be around $100 per tonne.

Analysts note that in the current context, shipowners are factoring in not only significant risks but also the daily idle rate of the vessel. For instance, Panamax vessel idle rates can exceed $100,000 per day.

Ukraine is already finalizing a scheme with global insurers to insure grain vessels heading to Black Sea ports and in the reverse direction. The relevant draft law for insuring the transportation of agricultural products was registered in March 2023.

The instrument to cover military risks for vessels in the Black Sea was introduced by the British insurance broker Miller in partnership with the technology company Clearwater Dynamics (CWD) and the government of Ukraine.

CWD's real-time innovative solution will allow monitoring operational activities in the maritime corridor during vessel transit and while they are in ports, as announced by Miller's press service.

This solution will be supported by Lloyd's and some other players in the London insurance market, providing insurance opportunities for comprehensive policy coverage.