1.1 Introduction to the Ukraine-Russia conflict and its implications for port safety in the maritime trade.
The escalation of the Russo-Ukrainian War, beginning with Russia's invasion of Ukraine on February 24, 2022, has profoundly impacted maritime trade, particularly challenging the legal understanding of safe port warranty in affreightment contracts. Ukraine plays a vital role as a major global supplier of agricultural commodities, such as sunflower oil, barley, corn, and wheat. Its substantial contributions to these crops have a profound impact on the global markets.(1)Andrew Gray, Unsafe port claims in the war in Ukraine, Maritime risk International, published on mars 27, 2023, Llyods Intelligence, Liz Booth Ed. 2000-2023( i-law.com)
The situation in the Black Sea remains highly dynamic, making it challenging to predict future developments. However, one undeniable fact is the compromised safety of ports in Ukraine and Russia. A survey by Interlegal shows that the outbreak of hostilities was not expected. Ports like Berdyansk, Mariupol, Skadovsk, and Kherson were officially shut down due to enemy control after the Ukrainian Ministry of Infrastructure's order on April 29, 2022. As a direct result, for example, no vessels have departed from Kherson since the conflict's start, due to war risks.(2) Arthur Nitsevych, 8 months of war in Ukraine: how the shipping industry is faring, Maritime risk International, published on November 2, 2023, Llyods Intelligence, Liz Booth Ed. 2000-2023( i-law.com)
A year into the blockade, insurers and P&I clubs scrutinised the situation to determine if the immobilised vessels qualified as losses under insurance terms. Shipowners declared abandonment due to prolonged immobility, invoking the blocking and trapping vessels clause.(3) Ibid. Following this, a Grain Agreement was signed on July 2, 2022, which set up sea corridors for shipping grain out of Ukraine from the ports of Odesa, Chornomorsk, and Pivdenny.(4) Ibid; this deal involved the collaboration of the United Nations, Turkey, Ukraine, and the Russian Federation The MV Razoni was the first ship to navigate under this agreement, departing from Ukraine on August 1, 2022.(5) Nytsevich (2023) Between August 2022 and June 2023, the grain agreement facilitated the export of around 30 million tons of Ukrainian grain. Nevertheless, this initiative came to an end on 17 July 2023. Moscow withdrew from the agreement after a year and reinstated the blockade due to claims of their demands being neglected.(6) Infographic - Ukrainian grain exports explained by Council of the European Union Retrived on November, 20, 2023, https://www.consilium.europa.eu/en/infographics/ukrainian-grain-exports-explained/ On 9 August 2023, Ukraine established a temporary humanitarian corridor for cargo ships in response. Subsequently, several vessels have left Ukrainian Black Sea’s ports via this corridor(7) Tom Balmforth, Ukraine expects 12 more cargo ships at its Black Sea ports, Reuters Retrived on November, 20, 2023,https://www.reuters.com/world/europe/twelve-more-vessels-enter-black-sea-corridor-towards-ukrainian-ports-navy-2023-10-04/. The Joseph Schulte was the first to leave a Ukrainian port post-agreement.(8) Nitsevych (2023) However, traders and farmers associations attribute reduced exports to the blockage of Ukrainian Black Sea ports and Russian attacks on Danube River ports.(9) Balmforth (2023)