32
GRAIN
A MARKET IN TURMOIL The war in Ukraine is having a huge effect on the movement of grain cargoes in the region, with blockades of port facilities likely to mean exports of grain from the country will be drastically reduced
S
ome estimates have put the loss of grain revenue to Ukraine at $6bn as the country is a major producer of grain and other cereal products, most of which are handled through ports rather than rail. According to International Grains Council estimates, between them Ukraine and Russia account for about 22% of global grain exports. Movement has been severely curtained by ships being stranded in Ukrainian ports since fighting began in February. In its March report, the Council said that the ongoing conflict between Russia and Ukraine had “fuelled concerns about potential food security risks, especially in import-dependent countries in Near East Asia and Africa.” It said that while “there are efforts to increase exports via railway routes through the country’s western borders, overall volumes are likely to be limited. An export licensing system was recently introduced for wheat, maize and sunflower-seed oil, while shipments of barley, rye, oats and millet are currently banned. While the extent of infrastructure losses is unknown, potential damage to port facilities, railroads and storage silos could impact shipments over the longer
BULK TERMINALS
international | SPRING 2022
