REVIEW OF UKRAINE’S FREIGHT MARKET DURING THE WAR

Abstract

Introduction. Historically, maritime transport is the main mode of transport for the transportation of bulk cargo. The article examines the changes in the supply chains of export goods from Ukraine, which occurred due to the sea blockade of ports, in particular in the context of the freight market of ships transporting grain cargoes. Purpose: to analyze the changes in the freight market that occurred during the period 2022-2023, using the method of analyzing statistical data regarding the level of freight rates and quantitative indicators of grain exports from Ukraine. Results. After the complete disruption of the decades-long sea transport supply chains, in the first months of 2022, both exporters and shipowners quickly adapted to the new realities of the maritime blockade. The only Ukrainian ports operating in the first half of 2023 were the ports of Izmail and Reni, and the bottlenecks were both the vessel handling capacity at the berths and the capacity of the Sulina canal, and later the Girla Bystre canal. A significant increase in demand for tonnage, together with excessive downtime in anticipation of berthing, led to a sharp and significant increase in the level of freight rates from the Danube ports. At the moment, first due to the work of the “Grain Corridor”, and now – the temporary sea corridor - the level of freight rates from the Danube ports has returned to the level of 2021, and the freight market of the Great Odesa region has returned to the overall regional market, although it is significantly higher than the level freight rates of neighboring ports, due to additional risks of shipowners, which are transferred to charterers. Conclusion. Despite the positive trend regarding the recovery of the quantitative indicators of grain exports from Ukraine, both by sea transport and in general, the economic efficiency of grain exports has greatly decreased. Improvement of the situation is possible through increasing the safety level perceived by ship owners, continuing the development of state ship insurance mechanisms, and creating a fleet of sea vessels operated by Ukrainian state shipping companies – as one of the options for reducing exporters' costs.