Allseeds vs USPA. How Does the Queue in the “Grain Corridor” Work and Is It Possible to Skip It?
Recently, the head of the Allseeds Group Viacheslav Petryshche complained that the vessel SUGAR loaded with vegetable oil has been stuck in the "grain corridor" for a month and no one has stirred a finger to let it through. Latifundist.com asked the Ukrainian Sea Ports Authority (USPA) to explain the cause of such long queues and whether manipulation is possible as to which vessels are let through and which ones are in line.
Kostiantyn Tkachenko, Latifundist.com
Does the Ukrainian side control the formation of the queue and the access of vessels to the corridor?
Inspection groups in the territorial waters of Turkey are not managed by the Ukrainian side, much less by the SE USPA. Inspections, as well as the Joint Coordination Center (hereinafter JCC), consist of representatives of the four parties. The number of daily inspections depends on the commitment of all four parties. The Ukrainian side, the Turkish side and the UN are ready and able to conduct up to 40 inspections per day, which has been repeatedly stated at meetings, in the media and at official events.
Unfortunately, it is the fourth party that deliberately impedes the effective work of BSGI (Black Sea Grain Initiative) by reducing the number of inspections from mid-October 2022. And all market participants know why the queue in the Bosphorus, which has reached more than 200 vessels, has been gathering since that time.
Did the number of inspections increase when russia withdrew from the grain deal for two days?
After russia terrorist state suspended its participation in the Initiative, the three parties conducted more than 80 inspections in two days and solved the problem that had been created in October. Currently, the number of inspections, unfortunately, again does not meet our expectations. The Ukrainian side has repeatedly appealed to the BSGI signatories — Turkey and the UN — on the unacceptability of blocking the grain corridor by russia, and expects their assistance in solving the problem.
What role does USPA play in the work of the grain corridor?
The SE USPA daily submits to the JCC the list of vessels awaiting inspection for entry and exit.
Then the JCC members agree in writing on the number of inspections for the next day. For a better understanding, here are the numbers. Since November 20, the Ukrainian side has been applying for entry and inspection of more than 60 vessels daily, but the representatives of the russian federation in the JCC agree on the passage of several vessels per day. For example, only 11 inspections were conducted in 5 days, which is critically low.
How do ports plan their operations in the corridor?
The port work plan for the week is based on the export terminal work plans and it is the terminals that determine the order of vessel handling at their berths and transmit this information to the branch of SE USPA. USPA, in turn, shows it in the weekly plan.
Back to the vessel SUGAR. Viacheslav Petryshche stated that some vessels are given priority, while others, such as SUGAR, are in a queue for a month. Why?
The cargo owner provided inaccurate information and kept silent about some details.
The cargo owner did not mention that on October 24 the bulk carrier arrived at the roadstead of Canakkale (Turkey). But only on October 30, the agent submitted the necessary set of documents for the vessel and the next day received confirmation from the SE USPA and the information was sent to the JCC.
The vessel arrived in the Bosphorus only on November 10, 2022. From this date until now, the russian side has agreed 43 entry inspections in the JCC. Of these, 14 inspections for the entrance to the port of Pivdenny. At the same time, all vessels that passed the inspection for entry to the port of Pivdenny during this period were scheduled by the terminal ahead of SUGAR.
It should be noted once again: it is the terminal plans, not USPA's, that determine the order of vessels in the weekly plan. Thus, taking into account the destructive work of the russian side in the JCC, the turn to inspect SUGAR in accordance with the work plan of the port of Pivdenny simply did not come.
The situation is similar in the ports of Odesa and Chornomorsk, where the order of vessels in the schedules is also determined by the terminals and only generalized by USPA.
Are there vessels prioritized for inspections?
The only vessels that are given priority during inspections are those carrying humanitarian aid to the poorest countries, chartered by the World Food Programme (WFP) of the UN. Of the vessels listed by the author, BC Callisto and Rubymar are among them.
The situation with the blocking of the grain corridor by russia is discussed at daily and weekly meetings with agricultural market participants. We urge port operators to participate in them. USPA is ready to consider and facilitate the implementation of any constructive suggestions of market participants to increase the transparency of planning and operation of the grain corridor in challenging conditions.
Up-to-date information on the weekly plan of vessel handling by port operators and the order of inspections conducted by the JCC is available on the official website of the SE USPA at the link: https://www.uspa.gov.ua/project/zvit-zerno.