Three Russian Black Sea terminals restrict grain intake by truck amid shipping risks, sources say
July 28 (Reuters) – Russia’s three major Black Sea grain export terminals have restricted grain deliveries by truck due to increased shipping risks in the Black Sea and increased flows following restrictions on the Sea of Azov, five industry sources told Reuters.
Russia, the world’s biggest wheat exporter, restricted shipping through the Sea of Azov this month after Ukrainian drones attacked several Russian grain ships along the route, which handles about a quarter of the country’s grain exports.
Authorities diverted grain from the fertile southern regions, previously shipped via the Sea of Azov, by truck and rail to deep-sea grain terminals on the Black Sea. However, attacks on Black Sea ports have also increased.
“The risks have increased and there are fewer and fewer people willing to take bold, reckless risks,” one of the sources said.
TERMINALS CAN CARRY MORE THAN 20 MILLION TONS OF GRAIN
The three terminals where road deliveries are restricted (NZT and KSK in the port of Novorossiysk and ZTKT in the port of Taman) have the capacity to transport more than 20 million tons of grain per year, sources said. Russia’s total annual seaborne grain export is around 50 million tons.
Two terminals in Novorossiysk accept grain deliveries by rail, but such deliveries are possible only from the southern regions of Russia, one of the sources said.
Approximately one-third of the grain handled by these two terminals is transported by truck, while ZTKT only accepts grain by truck. The terminals ship to Russia’s main grain customers, including Egypt and Türkiye.
The terminals’ owners, Demetra and Delo Group, did not respond to Reuters requests for comment.
The Kavkaz port, used to transfer grain from small ships to larger ships in the Sea of Azov, was closed immediately after restrictions were imposed on shipping in the Sea of Azov on July 10, sources told Reuters.
Russia banned ships entering and exiting the port of Novorossiysk at night a week ago due to drone attacks. Another source said the ban was still in effect.
BALTIC PORTS ARE CONSIDERED AS THE SAFEREST ALTERNATIVE ROUTE
Sources said Russia is trying to further diversify its exports, and ports in the Baltic region are expected to be prioritized as the safest alternative route in the near future.
Sources said the Caspian Sea route is also an option, but it is mainly used for shipments to Iran and risks are also increasing due to the war in the Middle East and the recent Ukraine attack on an Iranian ship.
Sources said shipments via the Caspian Sea have not increased since mid-July.
(Reporting by Reuters; Editing by Jan Harvey)
