Shipping companies are not rushing to export millions of tons of grain trapped in Ukraine, despite a breakthrough deal to provide safe corridors through the Black Sea. That is because explosive mines are drifting in the waters, ship owners are assessing the risks and many still have questions over how the deal will unfold.
Another key element of the deal offers assurances that shipping and insurers carrying Russian grain and fertilizer will not get caught in the wider net of Western sanctions. But the agreement brokered by Turkey and the UN is running up against the reality of how difficult and risky the pact will be to carry out.
Getting wheat and other food out is critical to farmers in Ukraine, who are running out of storage capacity amid a new harvest. Those grains are vital to millions of people in Africa, parts of the Middle East and South Asia, who are already facing food shortages and, in some cases, famine. "The primary risk that's faced is obviously going to be mines," said Munro Anderson, head of intelligence and a founding partner at Dryad. The maritime security advisory company is working with insurers and brokers to assess the risks that ships could face along the route as sea mines laid by Ukraine to deter Russia are drifting.
Shipowners, charterers and insurance firms, meanwhile, are trying to understand how the deal will play out in real time. "Shipowners and insurance companies are scared, they haven't received any reliable security guarantees," Melnyk said.Marine insurers reached by AP declined to comment on whether they would provide coverage for these ships.At the three ports in the export agreement, 13 bulk carriers and cargo ships have been stuck at Chornomorsk, six in Odesa and three at Yuzhny, data from Lloyd's List Intelligence shows.
Once ships reach port, they will be loaded with tens of thousands of tons of grains before departing back to the Bosphorus Strait, where representatives from Ukraine, Russia, the UN and Turkey will board the ships to inspect them for weapons. There will likely be inspections for ships embarking to Ukraine as well.
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