The Joint War Committee (JWC) has placed the Sea of Azov and the Black Sea in its top-risk category in response to escalating tensions between Russia and Ukraine. Owners will now be required to notify insurers of voyages to these regions, with insurers likely to charge war-risk premiums. The JWC stated that the risk of miscalculations and collisions amid increased naval activity, as well as the potential for further escalation, made the designation necessary.

Dry bulk shipments out of the Ukraine have been relatively unaffected so far, with average daily loadings totaling 352k tonnes last week, compared to a 5-year average of 258k tonnes. At 7m tonnes (up to 20.02 inclusive), Ukrainian exports on bulk carriers so far in February are 2.8% higher compared to February of last year. Of these shipments, 55% have been grain cargoes, with 25% and 8% being iron ore and steels, respectively.

While most of last year’s wheat harvest has already been sold, there is still a significant volume of corn left to export. The Ukrainian agricultural ministry estimate that 15 MMT of the 2021/22 corn harvest are due to be exported in the coming months, equal to 45% of the season’s total forecasted corn exports.