Grain Corridor: Business calls on UN, Turkey to increase ship inspections.

The European Business Association has called on the UN and Turkey to contribute to increasing the number of inspections of vessels loaded with Ukrainian foodstuffs, as well as continuing the grain initiative.

The relevant statement was published on the EBA website, Ukrinform reports.

“Business trusts and surely supports the grain initiative and is ready to increase transshipment volumes, however, unfortunately, there are logistical bottlenecks that block Ukrainian exports of agricultural products. In particular, according to the information of the EBA Grain and Oilseed Committee members, in January 2023, the number of inspections of ships arriving to load Ukrainian agricultural products sharply decreased to 2-3 per day. This means that vessel lay-ups will increase and ship owners and grain exporters will incur serious costs for vessel delays,” the statement says.

According to the grain business community of the European Business Association, in order to avoid a large crowding of vessels, as well as to effectively overcome the food crisis, especially in those countries where people suffer from hunger, it is extremely important not to allow delays in the inspections of such vessels. According to experts’ estimates, at least 25 inspections of vessels should be carried out per day for normal operation.

The association mentioned that millions of tonnes of agricultural products remain blocked in Ukraine. Therefore countries that depend on Ukrainian agricultural products cannot receive grain in the required quantity precisely because of the war that the Russian Federation waged on the territory of Ukraine. Accordingly, it is likely that this situation could lead to an increase in food prices and inflation around the world.

“The agribusiness of the European Business Association appeals to UN Secretary General Antonio Guterres and Ambassador Extraordinary and Plenipotentiary of the Republic of Turkey to Ukraine Yağmur Ahmet Güldere to facilitate the increase in the number of inspections of ships with Ukrainian agricultural products, as well as to facilitate the further continuation of the grain initiative. This is critical to continuing to ensure global food security!” the EBA said.

As reported, since October, Ukrainian ports have been forced to work at less than half of their capacity, and every month Ukraine is not able to export 2-3 million tonnes of grain to the world market. At the same time, almost 120 ships are currently waiting for inspection in the Bosphorus. The average waiting time is from two to five weeks, which leads to losses for cargo owners.

Photo: OPP