Latest News

Analyst: Ukraine reopens the Danube Canal after explosion

Analyst ASAP Agri stated on Tuesday that the Ukrainian Seaport Authority would reopen Bystre Canal, at the mouth the Danube from Wednesday. The canal had been closed since late July after a dredger explosion.

In the first year following the Russian invasion of 2022, Ukraine was forced to use alternative routes for exports. This included the Bystre as well as the Danube. Ukraine has seen a sharp decline in its use of the Danube since the ports were opened up in 2023.

In a press release, the consultancy stated that Ukraine will allow vessels up to 4.5 meters in depth to transit through the canal.

The move will reduce the disbursement cost for shipowners, and help support negotiations regarding Danube-origin cargo by narrowing bid/offer differences," said Pavel Lysenko at ASAP Agri.

The Seaport Authority has declined to comment.

Last month, it announced that the Bystre had been closed after a dredger explosion on 23 July. It did not provide any further explanation. Traffic was diverted via the Romanian Sulina canal.

ASAP Agri reported that the cost of using Sulina for shipowners was higher, and that many have raised their freight rates for Danube shipments in order to offset losses.

It said: "Market participants expect a partial rebound in Danube cargo flows, as negotiations become more equalized." (Reporting and editing by Kevin Liffey; Pavel Polityuk)

(source: Reuters)