Strikes on commercial ships in the Black Sea are already increasing the costs of exporting Bulgarian grain, warn representatives of the sector. According to them, some companies are refusing shipments from Bulgarian ports, and the prices of sea transport and cargo insurance are increasing.
Bulgaria is a net exporter of grain, with over 90% of exports passing through the ports of Varna and Burgas. “This could create a huge problem“, states the chairman of the National Association of Grain Producers Iliya Prodanov, quoted by Nota TV. According to him, the risk is both logistical and financial.
In the agricultural sector, they point out that one of the large trading companies has increased its premium by 3 euros per ton in just one day. According to Captain Dimitar Dimitrov, the higher military risk is initially borne by the shipowner, but the cost is subsequently transferred to the charterer and the cargo.
Radostina Zhekova from the Dobrudja Union of Grain Producers also draws attention to the higher fees for passing through the Bosphorus and the Dardanelles. She warns that the combination of insurance, transport and logistics reduces the amount that producers receive for their produce.
Discrepancy in risk assessments
Traffic in the Black Sea continues, but ships avoid areas with increased military risk. Economist Preslav Raykov says that freight and insurance are already more expensive, without a significant decline in shipping. Nikola Hristov, a member of the board of the Bulgarian Association of Ship Brokers and Agents, estimates a possible increase in shipping at between $5 and $10 per ton.
The industry's assessments differ from the position of Agriculture Minister Plamen Abrovski. On October 9, he stated that there were no ships to or from Bulgaria being refused and that he did not expect a rise in the price of grain and sunflower if trade continued normally. "If such ships appear, this could have an impact on prices," the minister said.
Producers are demanding that the state prepare alternative export routes, including via rail to Turkey and Greece. According to them, a temporary or permanent blockade of sea transport would hinder the export of millions of tons of grain and reduce farmers' incomes.