Risks to Sea Export: Attacks in the Black Sea Increase Insurance Costs

Drone attacks on merchant ships in the Black Sea create additional uncertainty for Ukrainian grain exports. Due to strikes on Ukrainian Black Sea and Danube ports, the country is increasingly relying on alternative routes, particularly through neighboring states.

For agricultural companies, it is important to monitor not only port accessibility but also associated costs: according to Associated Press, vessel insurance in the Black Sea is already becoming more expensive.

Insurance Adds Costs to Maritime Transportation

In the AP article, grain consultant Cezar Georghe noted that the incidents have not yet affected trade through Constanta port. However, rising insurance costs could increase overall maritime transportation expenses.

The most concern, according to the consultant, is the possibility of a serious incident at or near Constanta port itself. This is a risk that market participants should consider when planning routes and costs.

Alternative Routes Remain Important

According to AP, after Russian strikes on Ukrainian Black Sea and Danube ports, Ukraine is increasingly dependent on alternative grain export routes to African and Middle Eastern countries. However, incidents near the Romanian and Bulgarian coasts add uncertainty to shipping in the broader region.

In October, the agency reports, drones attacked at least seven merchant ships near the coasts of Romania and Bulgaria. Such circumstances make real-time security situation monitoring an essential part of maritime shipment planning.

What Sellers and Buyers Should Consider

• When calculating logistics, separately verify current vessel insurance conditions.
• Coordinate route and shipment timing with the carrier, considering security advisories.
• Compare transportation proposals, taking into account not only freight costs but also insurance and other related expenses.

What this means for the market: at the time of AP's publication, no impact of incidents on trade through Constanta was recorded, but higher insurance costs may already be increasing maritime logistics expenses. For sellers and buyers of agricultural products, this is an argument to incorporate variable costs into commercial calculations and promptly clarify transportation conditions.