Renewed Black Sea Fighting Threatens Global Grain Supplies
· World · Hindustan Times, The Economist, Bloomberg
Close to a third of global wheat exports sail out of Russian and Ukrainian ports on the Black Sea and the Sea of Azov, making the region vital for international food markets. Recent weeks of renewed fighting have disrupted agricultural exports from both nations, raising concerns about a second global grain crunch following the disruptions seen in 2022. While previous Russian attacks targeted Ukrainian port infrastructure in Odessa, recent strikes have increasingly hit merchant ships and grain terminals. Ukraine has also launched drone strikes that closed the Sea of Azov to Russian shipping and damaged grain terminals at the Russian port of Novorossiysk. Consequently, combined wheat exports from Russia and Ukraine may reach only about 2.5m tonnes this August, down sharply from 6.3m tonnes in August last year. Both countries are exploring alternative routes such as road and rail to the Danube River, but these workarounds face severe capacity constraints and low water levels.
Why it matters
Disruptions to Black Sea grain shipments threaten to push up global food prices and strain agricultural supply chains worldwide. Farmers and transport networks in Eastern Europe face higher haulage costs and altered trade demands as a result of the ongoing conflict.
Read the original report — Hindustan Times
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