The other Hormuz: Black Sea blockade threatens a food supply shock
Shipments from the Black Sea have been cut since July, and SovEcon says combined Russian and Ukrainian wheat exports may fall to half last year’s pace.
- Wheat prices have climbed to three-year highs as Russia and Ukraine have stepped up attacks on each other's ports since July, throttling shipments through the Black Sea, which carries more than 70% of Russian grain exports.
- Russia and Ukraine account for more than a quarter of global wheat trade, yet combined exports are estimated at roughly half of last year's levels for the July-September harvest period. The Black Sea disruption threatens food security in populous nations dependent on these supplies.
- Tue Vuong, chief executive of Golden Wheat in Ho Chi Minh City, had secured four cargoes of wheat from the Black Sea but faced a supply gap when shipments failed to sail. Vuong said, "I was very panicked," after learning of the disruption.
- Odesa, which typically handled about 90% of Ukraine's grain exports, is under regular missile barrage, leaving major importers vulnerable. Egypt, the world's largest wheat importer, has gone about a month without Black Sea grain shipments.
- Farmers in Russia and Ukraine are already curbing wheat sowing for next year's harvests, threatening future grain supplies. There is little sign of a revival of the 2022 shipping corridor Turkey once brokered for Ukrainian exports.
12 Articles
12 Articles
While the world is focused on the energy crisis caused by the situation in the Middle East, the Black Sea threatens a global food shock
Why the Black Sea blockade is compared to the blockade of the Strait of Hormuz and how it threatens the world The <p>attacks cut grain supplies from Ukraine and Russia, raising wheat prices to a three-year high. The EU warns of a global crisis.</p>
Black Sea Blockade Threatens a Food Supply Shock
A miller in Vietnam thought he had locked in a fifth of his year’s wheat—four cargoes from the Black Sea—until the war between Russia and Ukraine slammed the door shut. Tue Vuong, chief executive of Golden Wheat in Ho Chi Minh City, was told the grain would not sail after fighting intensified this summer. He […]
Wheat exports from Russia and Ukraine are declining sharply, which could deprive the world market of 8.2 million tons compared to the previous season, amid the limited capacity of alternative export routes.
The planet's attention is falsely directed towards the oil crisis in the Middle East, while the real disaster ticks at the border of Romania. The Black Sea, the vital artery that provides a quarter of the world's wheat trade, has become a veritable "hormous ormuz of agriculture, the Russian-Ukrainian blockade triggering a global shock in food supply. Behind closed doors, ... Article New "Ormuz of the planet: The Black Sea Block throws the world …
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