496 - 11/06 - Restrictions on bulk shipments of grain - Ukraine


The Club has been notified by its local correspondents in Odessa, Ukraine that 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:

· Wheat:  400,000 mt  · Barley:  600,000 mt

· Corn:  600,000 mt  · Rye:  3,000 mt

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. Members with ships already fixed for grain cargoes from Ukraine are encouraged to contact the Club and seek further advice and guidance from the local correspondent.

 

Source of information:  

DIAS Co. Ltd.

Odessa, Ukraine

Tel: +38 0482 346124

company@dias-co.com

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