INFOGRAPHIC: Black Sea grain trade faces fresh setbacks as logistics bottlenecks deepen

Black Sea grain exports are encountering new obstacles in the second month of intensified Russia-Ukraine attacks. While deep-sea routes remain largely inaccessible, alternative land and river corridors are increasingly hampered by low water levels, infrastructure bottlenecks, and renewed attacks.

In August, Ukraine's wheat and corn exports shifted significantly toward rail transport as strikes on Black Sea infrastructure and tightening logistics further limited seaborne shipments. Corn export volumes stayed subdued due to weak demand and dwindling old-crop supplies. Meanwhile, wheat traders turned to alternative ports, such as the Baltic for Russian wheat and Constanta for Ukrainian grain, to move newly harvested wheat. The shortage of reliable supply routes has driven CIF prices to record highs for destinations like Egypt and Turkey. As of Aug. 28, Platts CIF East Mediterranean assessment basis Egypt 12.5% wheat was at $314/mt, nearly $100/mt above the Platts wheat benchmark, the Milling Wheat Marker.

With the new corn crop expected to be harvested in October, traders expect that the Danube corridor may offer an additional outlet for new-crop corn. However, low water levels and high freight costs continue to present significant challenges. New-crop offers traded at an $8/mt premium over old-crop supplies last week.