Risks Grow as Attacks on Commercial Ships Increase in the Black Sea
As the crisis in the Black Sea deepens with merchant vessels being targeted in the Russia-Ukraine war, Ankara has launched diplomatic initiatives following the striking of Turkish ships.
While the targeting of commercial vessels in the Russia-Ukraine war escalates tensions in the Black Sea, Ukraine's Ambassador to Ankara was summoned to the Ministry of Foreign Affairs following the striking of Turkish-operated ships. Industry representatives issued warnings regarding global trade, grain prices, and insurance costs.
Targeting of Turkish Ships
Commercial ships heading to Russian and Ukrainian ports are suffering mutual attacks. The striking of the Turkish-operated ship named Lider Bordo Mavi off the coast of Tuapse, followed by the targeting of the Lider Kocatepe which went to assist, increased regional tension.
Following these developments, Ukraine's Ambassador to Ankara was summoned to the Ministry of Foreign Affairs. Caught in the crossfire, Turkish shipowners are awaiting an immediate ceasefire and a permanent solution.
Attack Reports and Risks
According to a report by the Turkish Shipowners' Association, in July, Ukraine carried out attacks on more than 206 and Russia on 57 commercial ships. During this period, 40 Turkish-controlled and 5 Turkish-flagged ships were hit.
If the process continues this way, there is a risk of 150 ships being scrapped, and shipowners state that their resilience is diminishing.
Increase in Insurance Costs
The increase in attacks in the Black Sea directly affected the insurance market as well. War risk premiums, which were around 0.07 percent in June, surged up to 10 percent in some cases with the ongoing crisis.
While some insurers avoid providing voyage-based war coverages, this situation drives up logistics costs and freight prices.
Impact on Grain and Food Prices
With the disruption of the grain corridor process in the Black Sea, prices of processed grain products increased worldwide. Wheat futures on the Chicago Board of Trade reached a three-year peak.
It is projected that if the problem is not resolved within two months, global food price increases could exceed 10 percent.
Difficulties Experienced in Exports
Shipments to Russia, the flagship market in fresh fruit and vegetable exports, decreased by over 33 percent. Due to the inability to load from Samsun, a shift was made to road transport.
However, it was reported that foreign-plated vehicle prices on the highway rose from 5,000 dollars to 10,000 dollars and drivers familiar with the region could not be found.