• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Ukraine’s Grain Corridors Still Need Ships to Ease Food Crisis

Ukraine’s Grain Corridors Still Need Ships to Ease Food Crisis

Cargill Cargo
A gantry crane loads a shipping container filled with corn for export from a grain terminal operated by Cargill Inc. Photo: Bloomberg.
August 7, 2022
Bloomberg

Ukraine’s first shipments of grain since being invaded by Russia are a harbinger of relief for squeezed global markets, but many challenges remain before the millions of tons of food stuck in the country can be released.

Perhaps the biggest is the willingness of shipowners to send their vessels into harm’s way, as the waters are littered with mines and Russia didn’t hesitate to strike the port of Odesa after the safe-passage agreement was signed. Officials with knowledge of the insurance market quoted a wide range of figures for covering the nation’s cargoes, with most of the numbers looking prohibitive for the trade.

“Insurance costs should be very high, and without any government assistance it will be difficult to find,” said Benoit Fayaud, an analyst with Strategie Grains in France. “It can be an issue for exports to accelerate.”

The trickle of activity started with the Razoni, which headed for Lebanon at the beginning of the week with 26,527 tons of corn. Three more boats sailed from Ukraine’s Black Sea ports on Friday, and two ships are heading to Chornomorsk port from Turkey to pick up cargoes.

Together that would make about 85,000 tons of exports in a week — a symbolic start but less than 8% of what Ukraine usually ships at this time of year. Some quantities also are being exported by road and rail, but in much smaller volumes than can be traded by sea. Prices for wheat and corn soared after the invasion, exacerbating food shortages for countries such as Somalia that rely on Ukraine growers.

Vasilis Mouyis, joint founder of Athens-based Doric Shipbrokers, said he’s fielded inquiries this week about shipping grain from Ukraine to destinations such as Egypt, Turkey, China, Spain and Italy.

“People are putting out feelers to see if they can put things together,” he said. “Things will start gaining pace next week.”

Insurers are offering non-binding policies to shipowners with war risk rates anywhere between 1% and 5% of the ship’s hull value, according to people involved in the market. In less risky areas, such cover is often just a small fraction of 1%.

Besides the insurance, boats stuck in the ports of Odesa, Chornomorsk and Pivdennyi for months may need to be inspected, and any defects will need to be fixed. 

“There will be some exports through the Black Sea ports, but not so much, not as before at least,” Fayaud said. “It will take a lot of time for the new boats to be loaded.”

Standard operating procedures for the shipping corridors were close to being finalized and will be made public once they are agreed upon, a UN spokesperson said last week.

Mouyis estimates that activity in the Black Sea dropped by more than two-thirds after the war began, though Russia has continued exporting big volumes of grain from Novorossiysk and Kavkaz in the northeast. Black Sea ports saw about 20% more arrivals from Turkish and Russian-owned boats in the second quarter, and 20% less calls by Ukrainian-owned boats, according to data from Lloyd’s List. 

No vessels leaving Ukraine had yet been covered under insurer Ascot Group and insurance broker Marsh’s new grain and food insurance program for the country, said Chris McGill, head of cargo at Ascot Group.

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Global Gateways Global Logistics Ocean Transportation Transportation & Distribution Global Supply Chain Management Global Trade & Economics Supply Chains in Crisis Food & Beverage
    • Related Articles

      Ukraine’s Farmers Fight to Stave Off Global Food Crisis

      Russian Odesa Missile Strike Tests Ukraine Grain Export Deal

      Supply Chain Data Is Key to Solving Global Food Crisis

    • Related Directories

      ProcureAbility

    Bloomberg

    Heat Wave Lowers Rhine Levels, Straining Fuel Supply Chains

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • A pair of hands reaches towards a cluster of icons showing global logistics network distribution and transportation

      CSCMP's State of Logistics Report: Get Used to the Fog

      Logistics
    • A GLEAMING TUNNEL OF LIGHTS CURVES AWAY INTO A HORN

      Gartner: Top 25 Supply Chain Organizations Are Embracing AI

      Global Logistics
    • HANDS TYPE ON A KEYBOARD UNDER A SUPER IMPOSED DIGITIZED MAP OF THE WORLD, ALONG WITH IMAGES OF A SHIP, A SHOPPING CART AND OTHER SYMBOLS OF INTERNATIONAL LOGISTICS

      Five Demand-Forecasting Mistakes Supply Chain Leaders Are Rethinking

      Technology
    • SHIPPING CONTAINERS BEARING THE FLAGS OF THE US AND CHINA SWING AND CLASH IN MIDAIR

      Supreme Court Allows First-Term Trump Tariffs to Remain in Place

      Global Supply Chain Management
    • A shipping container painted with the Canadian flag being lifted by a crane

      Canada Looks to Crack Down on Forced Labor Imports

      Global Supply Chain Management

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open General Logistics Systems
    Hy-Tek iGPS Korber
    Lyngsoe Procurability Quinyx
    SAP Sikick Systech
    S&P Global Mobility TADA TransImpact
    US Bank Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing