Alternative land routes are unable to replace Black Sea ports for the export of metal products
Russia's blockade of the maritime corridor inflicts 150–200 million dollars in losses on the Ukrainian mining and metallurgical complex every month. Due to the inability to fully utilize the ports of Greater Odesa, the industry is losing export opportunities and is forced to seek more expensive logistics routes. This was reported by GMK Center, according to the portal PromPolitInform.
The Ukrainian mining and metallurgical complex is currently facing a difficult economic situation due to rising electricity and railway transportation tariffs, as well as the implementation of the European CBAM mechanism. The physical destruction of some production capacities and the limited throughput of western borders make the operation of Black Sea ports a decisive factor for the industry’s survival.
The importance of Greater Odesa ports
Until the summer of 2026, the ports of Odesa, Chornomorsk, and Pivdennyi provided the lion’s share of external supplies of Ukrainian metal and ore. Thanks to their ability to receive large-tonnage vessels, they minimize freight costs, which is critical for low-margin cargo. Conversely, Danube terminals are unable to compensate for these losses due to limited depths and complex ground logistics.
Limitations of alternative routes
Exports by rail through western borders also have limitations related to the difference in track gauge and the congestion of European infrastructure. In the first half of this year, railway freight volumes to border crossings decreased by nearly 10%. According to experts, logistics costs when choosing land routes increase by 30–60 dollars per ton.
Financial consequences of the blockade
Systematic shelling of port infrastructure by the rf led to an actual halt in shipping in July. In addition to direct losses from the port blockade, export volumes are significantly affected by new EU quotas that reduce steel supplies. Projections suggest that total losses in foreign currency earnings in the metallurgical sector for 2026–2027 could reach 5 billion dollars.
Insurance protection issues
Resuming maritime exports requires security guarantees, which are currently hindered by the high cost of war risk insurance. Premium rates for vessels in the Black Sea can reach 100,000 dollars per day, making the transport of many types of products economically unfeasible. Members of the legal community emphasize the need to create a specialized insurance fund to support metallurgists.
Diplomatic and legal mechanisms
The international community is seeking ways to unblock shipping through diplomatic and legal tools, including the UN Convention on the Law of the Sea. However, experts note that the success of these initiatives depends directly on real political will, as the mechanisms for enforcing international law remain limited in the conditions of active hostilities.
Illustrative photo: Oleh Kushch / CC BY-SA 4.0
