Freight rates from Danube to Egypt may reach $120/ton due to Suez delays

Transportation of grain from Ukrainian Danube ports to Egypt is becoming more expensive due to delays at the Suez Canal passage. According to freight brokers, the initial rate may appear more moderate than the final transportation cost.

For grain sellers, this is a crucial parameter when calculating export prices: vessel waiting times can add additional costs to the logistics budget.

Initial freight — not the total voyage cost

Shipowners who still need to transit the Suez Canal are generally offering rates in the range of $95–105/ton. However, with delays of two to three weeks, actual expenses can rise to $115–120/ton or even higher.

Vessels already located in Danube ports and ready for quicker loading offer freight rates starting from $120/ton. Therefore, vessel availability and location influence the price no less than the base rate.

How waiting impacts the budget

According to an Atria Brokers representative, free waiting time for canal passage typically lasts 5–7 days. After that, the charterer may pay detention — a fee for vessel delay.

Adverse weather conditions usually do not exempt from such payments. Therefore, when comparing offers, it is advisable to clarify waiting conditions and potential detention costs, rather than relying solely on the quoted freight rate.

What sellers and buyers should consider

• Compare not only the starting rate but also the expected total delivery cost.
• Clarify how many waiting days are included in the freight terms and when detention charges apply.
• Check vessel availability at the Danube port and the approximate schedule for canal passage.
• Include the risk of delays in negotiations on price and delivery timelines.

What this means for the market

Due to restrictions at the Suez Canal, the difference between the initial rate and actual expenses can be significant. Transparent calculation of delays and vessel availability will help market participants more accurately assess logistics and agree on realistic delivery prices for grain from Danube to Egypt.