Delays of grain-laden vessels in Odesa ports cause sizeable losses — UGA

Every day that grain-laden vessels are delayed in the ports of Big Odesa causes losses of $1-1.5 per ton of product. The exporter's losses resulting from the delay of a 50,000-ton Handysize in the port amount to USD 50-75,000 per day, payable to the shipowner. Insurance costs for such vessels are also increasing as they stay in Ukrainian ports, the Ukrainian Grain Association (UGA) says in a statement.

"The Ukrainian Grain Association is concerned by the reports of grain market participants about the unreasonable delay of grain-laden vessels in the ports of Big Odesa. Such delays in ports cause huge losses to Ukrainian growers and the state budget of the country," the message reads.

The UGA is convinced that in a situation where grain and agricultural exports account for the lion's share of the country's own foreign exchange earnings and provide a significant portion of the taxes paid to the state budget, which Ukraine can actually spend on military needs, unjustified delays in ports are a crime that causes damage not only to Ukrainian producers but also to the state budget, and thus reduces funds for military spending.

"Such delays in ports are in no way related to weather conditions or navigation. The UGA calls on the government to intervene in the situation caused by officials at the regional level, to stop unlawful delays of vessels and to unblock grain exports as soon as possible," the Association urges.

As of October 20, more than 40 vessels could not be loaded in the port of Izmail as the law enforcement agencies imposed a ban.