Loss of access to deep-sea ports virtually paralyzed Ukrainian oilseed segment




The loss of access to the deep-sea ports, where Panamaxes can enter, causes great damage to the Ukrainian oilseed segment, because it has an extremely negative effect on the trade in oil and meal, and on the prices, senior manager of oilseed markets at Delta Wilmar Serhiy Nevskyi said during the online conference "Ukrainian oilseed market: optimistic or pessimistic forecast" on August 4.

"We are currently working on shipping a large batch of meal to China. It is not easy, because container logistics to China is very complicated. Currently, there are very limited opportunities to export meal and oil in containers to our traditional destinations such as China and India. Empty containers are not provided to Ukraine so that we can ship our meal. We can use only those that deliver imported products to Ukraine", – he explained.

According to S. Nevskyi, Ukraine can technically export oil products to Europe, which currently accounts for a large share of shipments. According to his estimates, about 1.6 mln tonnes of sunflower seed will be exported to European countries, while earlier this volume was about 200 thsd tonnes.

"Most of this products will go to Bulgaria and Romania, where there are already considerable stocks of sunflower seed. All the raw materials will be processed there and the oil will be sold to Europe. This puts strong pressure on prices on the nearest markets (EU and Turkey), as well as on North African markets. In addition, it makes Ukrainian oil less attractive for the closest importing countries", – S. Nevskyi said.

On the other hand, according to the expert, China and India expect the renewal of large tonnage shipments of Ukrainian products.

"If the ports are really opened, we will see the stronger demand from these countries", – he added.