The dry bulk market is in transition mode, after the disruption precipitated within the Russian and Ukrainian wheat exports. In its newest weekly report, shipbroker Banchero Costa mentioned that “the Russian invasion of Ukraine has notably robust implications for the seaborne grains commerce, with a doubtlessly vital affect on each dry bulk delivery and most significantly on international meals safety. Russia is the world’s single largest exporter of wheat, accounting for about 20 % of worldwide wheat commerce within the 2020/21 season. Ukraine can be one of many prime exporters of wheat, accounting for about 9 % of worldwide wheat commerce. The battle within the Black Sea has disrupted the circulate of grains from the area.
In keeping with Banchero Costa, “Ukraine has suspended port operations for business actions since February 24. Russian grain shipments from the Black Sea are persevering with, however are affected by exceptionally excessive insurance coverage premiums for vessels. As well as, the sanctions which have been utilized make business transactions difficult. Because of this, grain costs have soared for all main exporters. Worldwide wheat worth indices are at the moment up by about 70% in comparison with a 12 months in the past. In January-December 2021, the Russian Federation exported about 31 mln tonnes of seaborne wheat, based mostly on Refinitiv vessel monitoring information. That was about 20 % lower than in calendar 2020, which was a very robust 12 months, however nonetheless about 5 % greater than in calendar 2019. Russian wheat commerce is usually very quick haul, very fragmented, and with small cargo sizes”.
“In 2021, a minimum of 2500 separate wheat cargoes (a few of them have been partcargoes) have been shipped from Russia, with the typical cargo (or part-cargo) measurement being 12,000 tonnes. There are some exceptions, in fact, similar to 5 separate Capesize shipments of wheat seen final 12 months from Kavkaz in Russia to Iran. Normally, about one third of wheat exported from Russia is loaded on Panamaxes, typically with a number of discharge ports. The remaining two thirds of exports are on Useful or Supra bulkcarriers, or on basic cargo vessels. By way of loading areas, Russian exports are shipped nearly completely (98% of the overall) from the Black Sea. Sometimes, some sporadic cargoes are shipped additionally from the Baltic Sea or from the Far East port of Vladivostock. There may be additionally a reasonably minor Caspian Sea commerce with Iran and Turkmenistan”, the shipbroker mentioned.
Banchero Costa added that “the principle ports for Russian wheat exports are: Novorossiysk (11.3 mln tonnes loaded in Jan-Dec 2021), Kavkaz (10.2 mln tonnes), Rostov-on-Don (1.8 mln tonnes), Rostov Common Port (1.2 mln tonnes), Taman (2.3 mln tonnes), Azov (1.8 tonnes), Tuapse (1.2 mln tonnes), Taganrog (0.9 mln tonnes). By way of locations for Russian wheat shipments, it’s primarily the Mediterranean and Center East. In January-December 2021, about 7.9 mln tonnes of wheat have been shipped from Russia to Turkey. Turkey is by far the highest vacation spot for Russian wheat exports, accounting for 23 % of the overall. In second place is Egypt, with about 6.0 mln tonnes of wheat shipped from Russia. Egypt accounted for 18 % of Russia’s wheat exports in 2021. In third place is Iran, with about 4.2 mln tonnes of Russian wheat in 2021.
Iran accounted for 12 % of Russian wheat exports in 2021. In fourth place is Saudi Arabia, with 0.9 mln tonnes in 2021. Saudi Arabia accounted for two.5 % of Russian exports in 2021. Different main importers of Russian wheat embrace: Bangladesh (0.7 mln tonnes in 2021), Nigeria (0.7 mln tonnes), Libya (0.6 mln tonnes), Yemen (0.6 mln tonnes), the UAE (0.5 mln tonnes), Sudan (0.5 mln tonnes), Tanzania (0.4 mln tonnes), Kenya (0.4 mln tonnes), Senegal (0.4 mln tonnes), Israel (0.4 mln tonnes), Cameroon (0.3 mln tonnes), Algeria (0.3 mln tonnes), DR Congo (0.3 mln tonnes), Lebanon (0.3 mln tonnes), Pakistan (0.3 mln tonnes), Jordan (0.2 mln tonnes). Nearly 4.5 % of Russian wheat is shipped to European Union international locations – primarily Greece (0.4 mln tonnes), Italy (0.4 mln tonnes), and Romania (0.4 mln tonnes)”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Delivery Information Worldwide