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Queues for export of grain from Ukrainian seaports reach two weeks due to irregular inspections of ships – expert
KYIV. Oct 21 (Interfax-Ukraine) – The grain corridor, opened thanks to the Istanbul grain agreements for the export of foodstuffs from Ukraine, is unstable due to the lack of a clear schedule for joint cargo inspections by representatives of the signatory countries of the agreement.
As reported on the Facebook page of the Agrotrade agricultural holding, agricultural producers are suffering losses due to huge queues for passage along the grain corridor, in which 150 ships of various classes are already waiting in line.
"The grain corridor works, but it is very unstable. For example, about 12 vessels must go through inspection per day to enter and exit. But there are days when the number of inspections is significantly reduced or not carried out at all, which has led to the fact that today in Istanbul there are about 150 vessels of various sizes. The queue is huge. Waiting for entry is eight days, exit is at least two weeks, and sometimes more. Therefore, agricultural producers incur considerable losses. For example, for a vessel of 25,000 tonnes, you need to pay $20,000-23,000 per day," the holding company said, citing its director of the department of foreign economic activity, Andriy But.
He also said that another problem for grain exporters is the lack of ships available for loading, which leads to a shortage of grain storage capacities in Ukrainian ports and a drop in domestic prices for foodstuffs. According to the holding’s representative, at the height of the grain corridor, the price of corn was $225 per tonne, but now it has fallen to $210 per tonne and continues to decrease.
"In these already difficult conditions, the cost of freight is almost twice as expensive as it was before the war, because today shippers are afraid that the ship will enter Ukraine and get stuck for six months due to the end of the corridor. Therefore, there is practically no planning for shipments for the second half of November, and additional sales almost stopped," But said.