India’s decision over the weekend to ban wheat exports is expected to see a greater swathe of the dry bulk fleet head to the Americas, extending the tonne-mile picture for panamaxes, supras and handies.
Wheat prices rose by the maximum amount allowed on Monday in the wake of the ban from India, a nation that has been hit hard by a severe heatwave over the past two months.
Prior to the ban, New Delhi had suggested it could serve as a big wheat exporter after shipments out of the Black Sea were slashed in the wake of the war between Russia and Ukraine, two nations who typically supply around 30% of the world’s wheat needs.
Foreign ministers from the Group of Seven (G7) nations appealed to Russia over the weekend to free up sea export routes for Ukrainian grain and agricultural products critical to feeding the world, as food prices rise and the World Food Program warns of “catastrophic” consequences if Ukrainian ports remain blocked. Ukraine’s ports have been closed since the end of February with significant infrastructure damage at many quaysides as well as the issue of many sea mines located off the Ukrainian coastline.
Russia has now expanded the war against Ukraine to many states as a war of grain
“We must not be naive. Russia has now expanded the war against Ukraine to many states as a war of grain,” German foreign minister Annalena Baerbock said at a news conference Saturday after the G7 meetings.
Baerbock said the group was searching for alternative routes to transport grain out of Ukraine with Splash reporting regularly on how export routes out of Romania and Bulgaria are growing.