Conflict in the Azov Sea to increase the freight costs and insurance premiums — SUNSEEDMAN

APK-Inform

Generally, global traders do not expect that the strained tension in the Azov Sea basin will lead to significant problems with vessel traffic, but the current situation may lead to increasing of the freight rates and insurance premiums, and therefore, some growth of prices for exported grain crops, reported the independent expert at SUNSEEDMAN, Veysel Kaya to APK-Inform journalists.

According to him, the reporting difficulties can develop in the supply of goods from Russia to Turkey, because the countries provide trade operations mainly through the ports of the Azov Sea.

In terms of any significant limitations of the work of Russian seaports or even complete shutdown, Turkish companies-importers will need to look for alternative countries for the purchase of products, including Ukraine and the Balkan states (Romania, Bulgaria, Moldova, Serbia and Hungary). However, it should be clear that Ukraine will also have problems with the work of ports in the Azov Sea. Then, Turkey will have to purchase goods from the deep-sea ports only, where the prices for grains and oilseeds are always higher, said the expert.