Amidst a series of Russian attacks on key Ukrainian ports crucial for global grain shipments, Ukraine remains resolute in continuing its grain exports through the Black Sea. Despite warnings and port devastation caused by missile strikes. There is still considerable interest from ship owners in carrying Ukrainian grain, provided they can adequately mitigate the risks involved.
The International Chamber of Shipping represents 80% of the world’s commercial fleet. Acknowledges the inherent dangers but emphasises that shipping has historically demonstrated remarkable resilience in the face of such risks. However, navigating through the current perilous circumstances requires careful consideration and precautionary measures.
The recent missile and drone strikes occurred shortly after Russia withdrew from a wartime accord brokered by the United Nations and Turkey last year. The accord aimed to safeguard shipping companies and alleviate a global food crisis. As a major supplier of wheat, barley, and vegetable oil to developing nations, Ukraine grain exports have played a crucial role in ensuring food security. This year alone, Ukraine shipped 32.9 million metric tons of grain worldwide and provided 80% of the World Food Program’s wheat for humanitarian aid.
Following the collapse of the grain deal and Russia’s withdrawal from the accord, Ukraine took the initiative and sent a letter to the UN International Maritime Organization, establishing its temporary shipping corridor. In the letter, Ukraine assured that it would provide guarantees of compensation for any damages incurred during shipping.
Russia’s Warnings and Ukraine’s Retaliatory Move
However, Russia has responded with warnings that ships traversing parts of the Black Sea could be perceived as carrying weapons destined for Ukraine. In a retaliatory move, Ukraine declared that vessels heading to Russian Black Sea ports would be considered as carrying military cargo, thus exposing them to associated risks.
Russian Deputy Foreign Minister Sergei Vershinin declared that their navy would inspect vessels to ensure they are not transporting weapons before taking further action. This has added complexity to an already precarious situation and heightened the importance of safety protocols for all ships navigating the region.
The continuation of grain shipments from Ukraine now hinges on the shipping industry’s ability to secure insurance coverage to protect against potential damages, injuries, and loss of crew members. The stakes are high, with ships exporting Ukrainian grain valued at tens of millions of dollars and carrying significant amounts of food worth tens of millions as well. Vessels typically have a crew of 20 to 22 sailors, making crew safety a paramount concern.
To address these mounting challenges, all ships will undergo rigorous threat assessments before setting sail. Such assessments have gained significance in recent times, given the rising incidents of piracy, terrorism, and active war zones in various parts of the world.
