The port of Azov has seen heavy rain since Nov. 24, which has flooded the Black Sea port and prevented the loading of grain aboard coaster vessels, market participants, says an article published on sp global website.
Severe Flooding And Closure Of Kerch Strait
The port of Azov has faced significant disruptions due to heavy rain since November 24, causing flooding and hampering the loading of grain onto coaster vessels. Some sources indicate potential damage to stocks as sea and rainwater enter warehouses at the port.
The situation is compounded by the closure of the Kerch Strait, required for vessels entering the Black Sea from the Azov Sea, which is expected to last until November 30.
Varied Impact On Terminals
While not all terminals at Azov are experiencing delays, some traders are encountering challenges. The closure of the Kerch Strait, combined with flooding at Azov port, has led to notable setbacks in the flow of grain in the region. Inspection delays at Kerch were already at two weeks before the storm, exacerbating the situation.
Setbacks In Grain Flow And Export Estimates
Traders anticipate delays of up to 10-15 days in loading cargoes at Azov port, affecting the movement of grain. The storm has led to adjustments in the forecast for Russian wheat exports in November, now estimated between 3.8 million mt and 4 million mt, down by up to 500,000 mt from the initial estimates.
The northern part of the Black Sea is witnessing the impact, with around 70 cargo and tanker vessels reported in Novorossiysk, Russia.
Incidents And Damage In The Region
The Belize-flagged Blue Shark ran aground near Anapa, Russia, en route to Taman to load grain bound for Egypt, adding to the challenges faced by traders. In Sochi, Russia, railway infrastructure suffered damage as sea waves breached embankments, as seen in footage shared with S&P Global Commodity Insights.
Market Response And Future Demand
Market participants anticipate an increase in demand for grain due to the lack of cargo availability caused by the weather-related disruptions. The Platts CIF Marmara 12.5% wheat protein assessment rose $2/mt to $249/mt on November 24, reflecting stronger demand from Turkey in response to the challenges in the Black Sea region.
The storm’s multifaceted impact on transportation, infrastructure, and grain flow underscores the vulnerability of key trade routes and terminals in the face of severe weather conditions.
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Source: Sp global
