War: The restarting of Ukrainian ports will be long

Published 2022년 3월 24일

Tridge summary

Since Russia's invasion of Ukraine on February 24, the country's ports have been closed, leading to a halt in its maritime trade as a major exporter of sunflower oil, corn, and wheat. This has resulted in a risk of food security in importing countries and a significant increase in prices of agricultural raw materials. Despite these challenges, Ukraine has implemented grain transfer solutions by train to export a portion of its remaining grain. However, the conflict and track gauge differences between countries complicate this process. Meanwhile, Russian grain exports continue, and countries dependent on Ukrainian grain are seeking alternative sources, with some experiencing flour shortages and production challenges due to high energy and fertilizer prices.

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Original content

Since February 24, the day Russia invaded Ukraine, Ukrainian ports have been closed. “They are either mined, obstructed or bombarded,” says Jean-François Lépy, director of Soufflet Négoce and vice-president of Synacomex (external grain trade union). According to him, there is no doubt: "The restart will be long". Consequences: the maritime trade of the world's largest exporter of sunflower oil, the 4th world exporter of corn and the 5th world exporter of wheat are at a standstill, leading to a risk of food security in importing countries, a phenomenal increase in prices of agricultural raw materials and the fear of a fall in world production for the coming campaigns. GOOD TO KNOW Rail: a complex plan B This year, Ukraine had an export potential of 24.5 million tonnes (Mt) of soft wheat and 34 Mt of maize. At the end of February, nearly 7 Mt of wheat and 15 Mt of corn remained to be exported. Despite highly disrupted land flows, grain transfer solutions by train have been put in ...

Source: Pleinchamp