Dias Marine Consultants Co Ltd, our correspondents in Odessa, has provided us with the following information

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In connection with rise of home market grain prices the Cabinet of Ministers of Ukraine, starting from 17 October 2006, established grain import quotas, which are to be in force till 31 December. These quotas are as follows:

Wheat – 400,000 mts
Barley – 600,000 mts
Corn – 600,000 mts
Rye – 3,000 mts

Imposed restrictions resulted in paradoxical situation: regardless of the fact that export contracts for shipment of large quantities of grain were signed at the beginning-middle of 2006 and thus, the Ukrainian traders have obligation to their foreign partners, presently Ukrainian Customs, following the legislative innovation, just would not process cargo documents and allow shipment of cargo lots.

As on the beginning of November no large Ukrainian grain trading company has obtained grain export licence. The ships are 3-4 weeks delayed idly waiting for loading at the Ukrainian Ports Roads. Afterwards, some of them leave the port going on another Charter. Under such circumstances shipowners incur considerable expenses and losses related to payment of pilotage costs, channel, tug and other various port dues.

In order to at least somehow minimize their expenses related to vessels’ delay the shippers resort to various tricks such as steep requirements for cleanliness of the vessel’s holds often resulting in refusal of the shippers’ surveyors and State Grain Inspection’s officials to accept the holds for loading.

Taking into consideration the present state of affairs it seems advisable that the shipowners should refrain from giving their ships into charter for grain shipments out of Ukrainian ports. However, if nevertheless, the ship has been already chartered so and arrived at the Roads of a Ukrainian port to load grain cargoes and her holds have not been accepted for loading the Master of the vessel/Shipowner should immediately contact and resort to the help of a P&I Representative.

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