16 hours ago
Turkey's higher straits fee may affect Ukrainian grain exports, brokers say
Turkey's announced increase in tariffs for passing through the Black Sea straits will cause a rise in the cost of logistics for Ukraine's exports and may reduce the competitiveness of Ukrainian grain, brokers said on Wednesday.
Turkey has said it will increase the fee by 15% from July 1 to $5.83 per net ton.
Ukraine ships most of its exports through the Turkish Black Sea straits and brokers say an increase in transit fee could affect freight rates in destinations that involve their passage - in particular to key markets such as Egypt, Italy and Spain.
"According to preliminary estimates, such costs could increase freight by $2-$3 on average. This, in turn, makes it harder to compete with other exporters in the region, including Russia and Romania," Ukrainian Spike Brokers said on Telegram.
Ukraine is a global major grain grower and exporter, shipping abroad 40.3 million tons of grain so far in the 2024/25 July-June season.
(Reporting by Pavel Polityuk; Editing by Aidan Lewis)
