Handysize fleet in the Danube ports can partially replace "grain corridor" — Atria Brokers

Handysize fleet that meets the requirements of the Danube ports can be a way out for Ukrainian grain until the "grain corridor" begins to operate, Yuriy Melnikov, a freight broker of Ukrainian-based Atria Brokers company, told to Latifundist.

"Ahead of the harvesting campaign, as well as in the conditions of the total blockade of the "grain corridor" by russia, the development of the handysize fleet that meets the requirements of the Danube ports can be of particular importance. It can be the way out for Ukrainian grain until the "corridor" begins to operate,” Melnikov said.

Atria Brokers provided brokerage services to the BLUE GATE vessel. This bulker with a deadweight of 24 KMT began to be loaded with corn for Egypt at the port of Reni on Wednesday, 14 June. For the Danube ports, this is the first dry cargo of such capacity in the entire history of independent Ukraine. Due to the current draft of the port of Reni, which is 7 meters, BLUE GATE is scheduled to take on board 14 KMT of corn.

The ability to ship grain by handsize vessels from shallow ports will give Ukraine the opportunity to increase exports through the Danube ports, which is especially important given the extremely slow operation of the "grain corridor" and its possible complete stop after July 17, when the deadline for its extension expires.

Atria Brokers' freight department is currently developing a fleet list with similar parameters. However, the competition from the deep-water ports of Constanta in Romania and Varna and Burgas in Bulgaria can be the first obstacle to increasing shipments from the Danube ports by handysize fleet.

"Freight rates for such vessels are the separate problem, as the ships cannot be fully loaded. However, we do not rule out the possibility of additional loading in the Romanian port of Constanta. This could make ship owners more interested," Melnikov added.

The company notes that today traditional buyers of coasters are more interested in low-tonnage batches of 3-5 KMT due to the recent decrease in grain prices.

As a reminder, the sea ports of Reni, Izmail and Ust-Dunaisk processed 11.5 MMT of cargo in five months of 2023. This is an absolute transshipment record for the ports of this region in five months.