Ukraine

Restrictions on bulk shipments of grain - Ukraine

Owners : be aware of that in Odessa, Ukraine limits have been put in place, with immediate affect, on export shipments of grains from Ukraine.

Due to a rise in home market grain prices, the Cabinet of Ministers of Ukraine has established grain export quotas, which will be in force 17 October to 31 December 2006. Quotas for the individual grains are as follows:

Although Ukranian traders have obligations to their foreign partners, and in many cases export contracts for large shipments of grain were signed in the first half of 2006, the Ukranian Customs are apparently not processing cargo documents to allow large shipments of grain, and grain trading companies have not been issued with export licences.

The Club is advised that due to the new export restrictions, many ships that were fixed to ship grains have been moored in port with no activity for up to four weeks. Shipowners are, in these circumstances, incurring considerable expenses and losses. It has been reported that as a means of reducing their financial loss, shippers have been making unreasonable hold-cleanliness requirements, which often result in the holds deemed unacceptable by the shippers' surveyor and State Grain Inspection's officials.

Until the situation improves, ship owners are recommended to be careful when fixing with cargoes of grain from Ukrainian ports. Owners with ships already fixed for grain cargoes from Ukraine may seek advice from the club.

Source of information: DIAS Co. Ltd.
Odessa, Ukraine
Tel: +38 0482 346124
company@dias-co.com