Russian strikes reduced grain exports through the ports of Great Odesa by a third

Ukraine has lost about a third of its ability to export grain through the ports of Great Odesa after Russian attacks intensified.

Currently, about 4 million tons of grain can be shipped through the ports per month instead of the previous 6 million tons, Reuters reports.

According to the All-Ukrainian Agrarian Council , Russia has begun a systematic attack on port infrastructure, terminals and the entire transport and logistics chain, including with the use of ballistic missiles.

“On ​​average, we can now ship about 4 million tons of grain per month,” the Council report says.

Previously, the ports of the Odesa region, through which more than 90% of Ukrainian agricultural exports pass, could process about 6 million tons of cargo per month.

Despite the attacks, the ports have not stopped working completely. At the same time, traders are facing problems with purchasing, selling, shipping, accumulation of cargo, prices and freight, one industry representative told Reuters.

According to Ukrzaliznytsia, the number of grain carriers heading to the ports of the Odesa region decreased by 11% in the week of July 2-8 compared to the previous week. Exports during this period decreased by 17%.

The largest Ukrainian grain exporter Kernel has suspended work at the port of Chornomorsk due to a series of Russian attacks.

Another industry source told Reuters that four of the 13 major grain terminals in the ports have temporarily stopped purchasing grain.

ASAP Agri analysts also note that the reluctance of shipowners to call at Ukrainian ports is creating additional pressure on freight rates.

Barva Invest analyst Bohdan Kosteckiy noted in a material for Agrotimes that the ports have lost about a third of their grain storage capacity. According to him, the loss of about 2.5 million tons of monthly storage capacity in deep-sea ports has created a “bottleneck” for grain, due to which some volumes cannot reach export destinations.

The Agrarian Council warns: if the intensity of Russian attacks continues and restoration work is not carried out, the infrastructure could suffer significant damage within a few months.

Ukraine in recent seasons has provided about 6% of world wheat exports and about 11% of corn exports. Therefore, prolonged disruptions to the operation of Black Sea ports could also affect global agricultural markets.