«Our potential is higher than we handle» — expert on Ukrainian seaports

Ukrainian Ports, Exports, Imports, and Capacities

Hromadske Radio interviewed Viktor Berestenko, President of the Association of International Freight Forwarders of Ukraine. We discussed the topic of Ukrainian ports in time of war.

«Since August 2023, more than 2,300 vessels have visited the ports of Greater Odesa, handling over 60 million tonnes of cargo. Of this, about 42 million tonnes were grain. There are no restrictions, except those imposed by Russia, on the owners of ships that visit our ports. The geographic range of both the ships and the cargo they carry is broad. This is made possible by the achievements Ukraine has gained on the battlefield and at sea. Currently, there are no restrictions on the transportation of goods to and from Ukrainian ports, aside from security considerations.»

Cost of Transportation

According to Viktor Berestenko, the cost of transportation has nearly returned to pre-war levels.

«Insurance mechanisms are in place, and with military risks factored in, the cost is almost twice as high. There are insurance clubs in maritime transport—international companies that cover military risks, among other things. Since the resumption of shipping in Ukraine in August 2023, the cost of insurance has dropped from 5% per ship call to about 0.5-0.8%.

Shipping is now unrestricted. This isn’t just a corridor; we export and import what our economy can manage. Previously, there was a situation where ships gathered in convoys, leaving Odesa ports once a day, escorted to the territorial waters of Romania, and entering the same way. Now, there is no need for a convoy.«

Security Issues

The President of the Association of International Freight Forwarders of Ukraine believes that security can always be improved and notes the demand for anti-drone defenses.

«There have been hits to port infrastructure—for example, last week in Odesa. However, no matter what the enemy tries, they will not limit our country’s ability to export and import goods through our ports. Before the Russian fleet was destroyed, they could physically block our shipping. Now, thanks to the Ukrainian Armed Forces, they cannot do so.

Currently Ukraine cannot sustain its economy without access to sea routes. Its export base is raw materials, and the cost of transporting them by other means makes little economic sense. The capacity to export and import is much higher than the volume of cargo it currently needs to move. Thus, the potential of Ukrainian ports exceeds what the country is handling at the moment.

According to Denys Shmyhal, one of Ukraine’s biggest victories last year was the opening of the Ukrainian Maritime Corridor.

He also shared the results of the corridor’s operation for Ukraine:

• More than 2,300 vessels called at the Black Sea ports of Ukraine this year.
• Cargo turnover exceeded 64 million tonnes.
• Almost 44 million tonnes of grain were exported from Ukraine.