In the early morning of 25th September, Mintec learned that the Odesa region (10 Ukrainian oblasts) was attacked by a massive airstrike overnight. It was reported that the grain storage facilities that stored approximately 1,000 tonnes of grains were extensively damaged. The grain storage facilities were located near the old Kempinski Odessa hotel, which has been inoperative for several years and had also been destroyed by shelling. According to Mintec sources, the Odesa port itself has not been affected.
Wheat futures prices [Mintec Code: WHT2] came under pressure last week as Ukraine managed to execute a few shipments via the Black Sea. Two vessels (Resilient Africa and Aroyat) entered the port of Chornomorsk in Ukraine using humanitarian corridors for the first time after the grain deal initiative was stopped. The first vessel was loaded with 3,000 tonnes of wheat and headed towards Bosphorus. The second vessel with 18,000 of wheat headed to Egypt, and three more new civilian ships moved towards the Ukrainian port. This was an attempt to see whether Ukraine could keep shipping lines open without Russia trying to create a blockade.
Thus, the recent incident has raised safety concerns among market players as the resurfacing of such threats poses risks for using humanitarian corridors to export large volumes of Ukrainian goods. A Mintec source commented, “even though everyone got used to these types of events, each time it is like a wake-up call, and you realise that a lot of costs are at stake, especially in human life. The passage will be only safe once involved parties in the conflict agree to allow it to be.”
As the situation evolves, authorities are diligently assessing the extent of the damage and implementing enhanced security measures at Ukrainian ports. The goal is to prevent future incidents that could disrupt the flow of goods and impact international trade. Mintec remains committed to updating this developing story as more details emerge.
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