{"id":51726,"date":"2022-06-13T21:31:22","date_gmt":"2022-06-13T19:31:22","guid":{"rendered":"https:\/\/www.rudebaguette.com\/?p=51726"},"modified":"2022-06-13T21:31:29","modified_gmt":"2022-06-13T19:31:29","slug":"insurers-will-have-to-bear-the-risk-of-getting-grain-out-of-ukraine","status":"publish","type":"post","link":"https:\/\/www.rudebaguette.com\/en\/2022\/06\/insurers-will-have-to-bear-the-risk-of-getting-grain-out-of-ukraine\/","title":{"rendered":"Insurers will have to bear the risk of getting grain out of Ukraine"},"content":{"rendered":"\n

The Russian foreign minister, Sergei Lavrov, and the Turkey foreign minister, Mevl\u00fct \u00c7avu\u015fo\u011flu,\u00a0met<\/a>\u00a0in Ankara on June 8 to discuss a grain shipping deal.\u00a0<\/p>\n\n\n\n

This deal would create a way<\/a> for ships to transport grain out of Ukraine. A deal like this would be great for the current state of food security globally.<\/p>\n\n\n\n

Lavrov and \u00c7avu\u015fo\u011flu discussed an arrangement that would allow the Russian military to scrutinize incoming ships for weapons. <\/p>\n\n\n\n

When Russia launched its attack on Ukraine, it barricaded the country’s Black Sea ports<\/a>, including Odesa, preventing ships from leaving or entering. <\/p>\n\n\n\n

The surrounding waters are also covered with floating mines. To create a grain corridor, the country would first have to demine the waters.<\/p>\n\n\n\n

The commerce ships would be safely guided by Turkish ships, and Ukraine would have to demine its shore as part of the agreement. <\/p>\n\n\n\n

In response, Kyiv stated<\/a> that it would demine a naval corridor only if Ukraine was assured that Russia would not strike its ports.<\/p>\n\n\n\n

The director of the Ukrainian National Agrarian Forum<\/a>, Mariia Didukh, said, “Before the war, more than 90% of all Ukrainian agri-food export was done by sea.”<\/p>\n\n\n\n

She added that only a fifth of the regular monthly export quantity, equivalent to 1.2 million tonnes of agricultural products, were exported out of Ukraine during the first three months of the war.<\/p>\n\n\n\n

Didukh stated that her organization had been developing alternative ways to export the needed agricultural products, including “railway, trucks, and some Danube ports in Romania.”<\/p>\n\n\n\n

If the agreement is finalized, it will accomplish what several months of negotiations have failed to do; allow unfettered transport of urgently needed Ukrainian grain. <\/p>\n\n\n\n

To export the grain, ships would have to risk traveling to Ukrainian ports, reclaiming grain, and transporting it out of the Black Sea with the help of a naval corridor and escort.<\/p>\n\n\n\n

According to the International Grains Council, between 5 million and 6 million tonnes of grain<\/a> were exported from Ukraine’s seaports every month before the war.<\/p>\n\n\n\n

Due to the war, shipping businesses have lost approximately $5 billion<\/a>, and the losses continue to mount even though there is currently little marine trade.<\/p>\n\n\n\n

Insurers and shipping companies are scared of incurring additional financial losses. <\/p>\n\n\n\n

There are 20 million tonnes<\/a> of grain stranded in the country. Unfortunately, it’s companies that transport grain, not governments. <\/p>\n\n\n\n

To avoid a worldwide food catastrophe, shipping companies, insurers, and reinsurers must be assured that any solution reached by governments will make the Black Sea waters secure for their ships, personnel, and cargo. <\/p>\n\n\n\n

Cormac Mc Garry<\/a>, a maritime analyst with Control Risks, says, “The shipping business is very risk-tolerant.” <\/p>\n\n\n\n

He adds, “On an average day, a seafarer faces more risk than most individuals do in a lifetime, and that risk tolerance filters down to the corporate level.”<\/p>\n\n\n\n

However, if the government manages to create a grain corridor, a few shipping companies and insurers will likely step up to the plate.<\/p>\n\n\n\n

The Russian foreign minister, Sergei Lavrov, and the Turkey foreign minister, Mevl\u00fct \u00c7avu\u015fo\u011flu,\u00a0met<\/a>\u00a0in Ankara on June 8 to discuss a grain shipping deal.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

The Russian foreign minister, Sergei Lavrov, and the Turkey foreign minister, Mevl\u00fct \u00c7avu\u015fo\u011flu,\u00a0met\u00a0in Ankara on June 8 to discuss a grain shipping deal.\u00a0 This deal would create a way for ships to transport grain out of Ukraine. A deal like this would be great for the current state of food security globally. Lavrov and \u00c7avu\u015fo\u011flu discussed an<\/p>\n","protected":false},"author":77,"featured_media":51727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"subtitle":"","footnotes":""},"categories":[113],"tags":[10606],"class_list":["post-51726","post","type-post","status-publish","format-standard","has-post-thumbnail","category-finance","tag-ukraine-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts\/51726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/users\/77"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/comments?post=51726"}],"version-history":[{"count":0,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts\/51726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/media\/51727"}],"wp:attachment":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/media?parent=51726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/categories?post=51726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/tags?post=51726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}