Recently, russia has intensified attacks on the merchant fleet in the Black Sea and on the port infrastructure of the Odesa region. The ports of Greater Odesa – Odesa, Chornomorsk, and Pivdennyi – have been particularly affected. As the security situation has deteriorated, the market has increasingly been receiving signals from shipowners and fleet operators about temporarily refusing to call at Ukrainian ports. Moreover, existing contracts are being revised, and some shipowners have already begun canceling charter agreements.
In addition, the issuance of new war risk insurance policies for vessels and cargo bound for Ukrainian ports has been suspended. Insurance companies are currently reviewing premium rates to reflect the increased level of risk.
The massive russian attacks on ports in the Odesa region have led to a sharp decline in domestic purchase prices for agricultural products in Ukraine.
For example, the company Nibulon stated that, during the current period, purchase prices at the company's grain elevators are being determined with additional costs for alternative logistics routes taken into account, while procurement at Black Sea ports has been temporarily restricted. According to numerous sources, all traders have either significantly lowered their prices or suspended purchases of agricultural products altogether.
All of this is happening precisely when Ukrainian farmers have almost finished harvesting winter grain crops.
What should Ukrainian exporters do—wait for an improvement in the security situation or seek alternative logistics routes for exporting domestic products?
According to Artem Matusevych, Commercial Director of the Odesa-based logistics company GRANDAR, alternatives do exist:
«Of course, we believe that the ports of Greater Odesa will continue operating as usual – the Defense Forces of Ukraine and the relevant ministry will implement additional measures that will give shipowners and cargo owners greater confidence in operating through these ports. However, we remember 2022-2023, when logistics shifted toward western Ukraine and the ports of the Danube region. The specialists currently working at GRANDAR were directly involved in those processes and were pioneers in creating entirely new logistics routes and services that simply did not exist before. Therefore, the GRANDAR team knows exactly how to act – we have ready-made solutions. Moreover, we do not need to recall or reconfigure anything, because since the company was founded, we have worked and continue to work on these routes. From the very beginning, we anticipated the possibility of a worsening security situation, so most of the cargo we transport is shipped via routes that serve as alternatives to the ports of Greater Odesa».
As a result, GRANDAR provides comprehensive support for agricultural exports using alternative routes, adapting logistics solutions to the current market situation and the specific requirements of each project.
«We provide a full range of services: accumulation and storage of products at dry ports, organization of container stuffing, certification, customs clearance, and coordination of rail and road transportation to the port of shipment or the final consignee.
Our practical experience in railway logistics, grain transshipment, and our in-house team of customs brokers enables us to efficiently coordinate every stage of transportation and respond promptly to potential risks associated with export operations», - Artem Matusevych emphasized.
GRANDAR specialists have experience working with a wide range of export products, including agricultural, metallurgical, chemical, and other goods. For each type of cargo, the required specialized equipment is selected individually in accordance with the customer's technical instructions (various types of packaging, securing methods, loading systems, etc.), ensuring cargo safety, compliance with international requirements, and maximum transportation efficiency.