Ukraine grain corridor departures fall to four-month low

Some 3m tonnes of grain and other agricultural products were exported in January, 19% less than in December

Demand for travel under the initiative has increased, but daily inspections have not grown at a level needed to meet this demand. This has created a logistics bottleneck. DEPARTURES under the Black Sea Grain Initiative from Ukraine’s greater Odesa ports stalled in January with 78 outbound sailings, compared to 106 in December, representing the lowest number since the deal became operational in August last year.

Some 3m tonnes of grain and other food-related products were exported in January, 19% less than the previous month, according to data from the Joint Coordination Centre.

The UN-brokered Black Sea Grain Initiative, signed last July, enables the export of grain and certain foodstuffs from three ports — Chornomorsk, Odesa and Yuzhnyi.

It was expected that operational efficiency would improve as time went on, but the rate of vessel departures has slowed.

Daily outbound sailings averaged 3.12 in January. This is down from 3.53 in December and a high of six in October.

October was the initiative’s best performing month. Some 4.2m tonnes of agricultural products were loaded and shipped to foreign markets.

The grain corridor agreement stipulates inspections for vessels travelling to and from Ukraine. The teams check documentation and look for any unauthorised crew.

Demand for travel under the initiative has increased, but daily inspections have not grown at a level needed to meet this demand. This has created a logistics bottleneck.

The latest JCC data indicates there are 29 vessels waiting for inspection, 18 of which are laden and waiting to travel to their next destination. Another 86 ships are waiting to join the initiative having submitted applications.

There are practical issues causing inspection delays including compliance problems, fumigation issues, improper documentation and poor weather conditions.

A further hinderance, according to Ukraine’s minister of infrastructure Oleksandr Kubrakov, is Russia’s involvement in the process.

The Black Sea Grain Initiative requires JCC inspections to be conducted jointly by Russian, Turkish, Ukrainian and UN inspectors.

Mr Kubrakov alleges Russia “artificially” limits inspections.

The JCC averaged seven daily inspections in the last week of January. The Ukrainian Sea Ports Authority, which facilitates movements under the initiative, says that 12 are needed each day to ease the backlog.

The JCC conducted 82 inspections in two days when Russia paused its participation in activities relating to the implementation of the grain deal.

Inefficiencies relating to inspections minimise the effectiveness of the initiative and are ultimately limiting the output potential of Ukraine’s greater Odesa ports.

In the first weeks of the initiative’s operation, Mr Kubrakov said the aim was to export 3m-5m tonnes a month under the agreement.

The deal is set to expire in mid-March and there is yet to be any indication whether it will be rolled over for another 120 days. This uncertainty could further slow activity, as was the case in November.

Since its inception the Black Sea Grain Initiative has facilitated the export of 19.1m tonnes of grain and other agricultural products to international markets.