Russian Drone And Missile Attacks On Ukrainian Ports Lead To Drop In Food Exports

Russian attacks on Ukrainian ports have significantly reduced the country’s food export capacity this month, raising concerns over declining global grain supplies and forcing some exporters to default on contracts.

Ukraine, one of the world’s largest exporters of wheat, corn, and sunflower oil, has seen near-daily drone and missile strikes on ports in the Odesa region in recent weeks.

These attacks have disrupted operations at key export terminals, despite ongoing efforts to divert shipments through rail and river routes.

According to Ukraine’s farmers’ union, at least one of the country’s three main export ports is either completely idle or operating at just 20% capacity.

The union reported that the attacks have already led to missed wheat deliveries and delays in fulfilling export contracts scheduled for December.

Ukraine had resumed most of its food exports in 2023 after a de facto Russian blockade earlier in the war worsened global food shortages. However, the latest escalation has once again weakened the country’s export potential.

Damage to logistics routes linking inland regions to Danube River ports has further strained exports. These river ports had previously helped compensate for limited access to major seaports.

The farmers’ union said the continued targeting of both deep-water and river ports would lead to a sharp decline in exports. It added that some major trading companies have begun reallocating grain shipments through railway terminals, with more cargo expected to be sent toward land borders instead of seaports.

As of December 22, only 375,000 metric tons of wheat had been shipped, compared to 1 million tons contracted for the full month. Corn shipments reached 1.5 million tons out of a planned 2 million tons.

Sunflower oil exports stood at 275,000 tons, with full-month volumes expected to fall below 350,000 tons, against contracted volumes of 410,000 tons.

The union reported that some wheat exporters have defaulted on contracts, while others have postponed deliveries to January due to limited port capacity.

By comparison, Ukraine exported around 800,000 tons of wheat, 2.6 million tons of corn, and 378,000 tons of sunflower oil in December last year.

Total grain exports between December 1 and 22 fell to 1.82 million tons, down from 2.88 million tons during a similar period last year. The drop was mainly caused by lower shipments of wheat and corn.

Reference: Reuters

Source: Maritime Shipping News