• AutoTL;DR@lemmings.worldB
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    1 year ago

    This is the best summary I could come up with:


    LONDON, Aug 8 (Reuters) - Russia’s lack of ships and Western grain traders’ shrinking appetite for business with Moscow are adding to rising costs of moving Russian wheat, at a time when the war in Ukraine has spilled perilously close to vital Black Sea supply routes.

    President Vladimir Putin promised to replace Ukrainian grain with Russian shipments to Africa after Moscow in July ended an arrangement that gave Ukraine’s food cargo safe passage in the Black Sea, imposing a de-facto blockade on its neighbour and attacking storage facilities, in an escalation of the war.

    In a sign of Russia’s growing hunt for vessels, its requests for charters doubled to 257 in July compared with the same month last year, according to data from maritime platform Shipfix that collates from hundreds of market participants.

    Without the Black Sea corridor in place, both Russia and Ukraine warned in July that ships destined for each others ports could be treated as legitimate military targets, which three marine insurance source said was a further blow to Western companies’ risk appetite.

    The industry executive said another risk was if a vessel needed to buy fuel from Russia, a situation the source said could create problems with Western sanctions enforcers, making it harder to then conduct non-Russian business.

    Many of the Russian operated current fleet of 31 mainly smaller dry bulk carriers are over 30 years old, VesselsValue data showed, making it harder to access some ports with stringent requirements for ships over a certain age.


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