Risks, mined waters slow rush to extract grains from Ukraine
Shipping companies are not rushing to export millions of tons of trapped grain out of
The complexities of the agreement have set off a slow, cautious start, but it's only good for 120 days — and the clock began ticking last week.
The goal over the next four months is to get some 20 million tons of grain out of three Ukrainian sea ports blocked since the
It also provides ample time for things to go awry. Only hours after the signing Friday, Russian missiles struck Ukraine’s port of Odesa — one of those included in the agreement.
Another key element of the deal offers assurances that shipping and insurers carrying Russian grain and fertilizer will not get caught in the wider net of Western sanctions. But the agreement brokered by
“We have to work very hard to now understand the detail of how this is going to work practically,” said
“Can we make sure and guarantee the safety of the crews? What’s going to happen with the mines and the minefields, as well? So lots of uncertainty and unknowns at the moment," he said.
Getting wheat and other food out is critical to farmers in
The deal stipulates that
“The primary risk that’s faced is obviously going to be mines,” said
Shipowners, charterers and insurance firms are seeking to understand how the deal will play out in real time.
“I think it’s going to come (down) to the position of the marine insurers that provide war risk and how much they are going to be adding in additional charges for vessels to go into that area,” said
Bockmann said vessels carrying this kind of load typically have between 20 to 25 seafarers on board.
“You can’t risk those lives without something concrete and acceptable to the shipowners and to their charterers to move grain,” she said.
Marine insurers reached by The Associated Press declined to comment on whether they would provide coverage for these ships.
Ukrainian officials have expressed hope that exports could resume from one of the ports within days, but they have also said it could take two weeks for all three ports to become operational again.
The war has wreaked havoc on global trade, stranding over 100 ships in
Since the war began in late February, 22 bulk carriers and cargo ships have been stuck at the three ports included in the export agreement, data from Lloyd’s List Intelligence shows. Around 13 are docked at Chornomorsk, six in Odesa and three at Yuzhny.
Some of those ships might still have crews aboard that could be mobilized to start exporting grains.
Ukrainian traders have able to send some grain through the
Over the 2021-2022 marketing year,
For ships heading to
Once ships reach port, they will be loaded with tens of thousands of tons of grains before departing back to the
“The balance of power on this agreement still sits with Russia,” said Anderson, Dryad's head of intelligence. Any Ukrainian ports outside the agreement face increased risk of attack, he said.
“I think what
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