Following the Attacks on Commercial Ships: Problems with Grain Transportation in the Black Sea

Bulgaria must urgently ensure the safety of shipping in the Black Sea, Iliya Prodanov, Chairman of the National Association of Grain Producers, told BNT’s The Day Begins programme on October 16. Five million tonnes of wheat are awaiting export from the country, and there is no alternative to maritime transport.

Bulgaria is a net grain exporter, and the recent incidents involving vessels being struck in the Black Sea have caused serious concern among producers.

Iliya Prodanov, Chairman of the National Association of Grain Producers: “ We already have ships that have refused to come to Bulgarian ports. Others are simply delaying their arrival and are staying in the southern part of the Black Sea.This is becoming an increasingly serious problem.”

Petar Petrov, grain producer: “One concern is that transport companies’ costs are rising in terms of freight and insurance. On the other hand, there are the risks themselves. We are now worried that ships may no longer enter the 12-nautical-mile zone, because that would make things even more difficult.”

Since the start of the war in Ukraine, the cost of transporting grain from the Black Sea basin has increased more than fivefold.

Iliya Prodanov, Chairman of the National Association of Grain Producers: “Since yesterday, we have stopped talking only about prices. We are now talking about whether ships will be able to come here at all. Bulgaria must find a way to guarantee the safety of its territorial waters.”

Against this backdrop, producers have five million tonnes of wheat to export.

Petar Petrov, grain producer: “Our markets are in North Africa and the Middle East, and perhaps partly in Asia. I do not think there is any alternative – rail transport does not have the capacity to handle these export volumes.”

Iliya Prodanov, Chairman of the National Association of Grain Producers: “If the situation does not return to normal and ships do not resume calling at our ports as usual, Bulgaria risks being unable to export its available wheat stocks.”

Grain producers also report that traders are already trying to push down wheat prices because of the rising cost of transport.