Danube shipping looks simple only from the outside.
In our new Q&A with Katerina Kononenko, Avalon Shipping, we discuss Sulina, Bystroe, port costs, draft limits, paperwork, and why small-parcel cargoes still make the Danube a market worth watching.
Q1. You freely share tips and insights about vessel calls on the Danube, yet in my experience agents don't give away their secrets. Where does that openness come from?
We do have our own operational know-how that I don't publish, of course. But new shipowners and charterers are inevitably facing difficulties when navigating the Danube for the first time, as there are so many nuances. The clearer and more accessible we make that journey for them, the higher the chance they'll agree to work on the Danube, and the more clients we'll have.
It all started in 2022. Every day I received over 30 messages with questions about draft, waiting time, proforma, port rules, etc. in my DMs. That's when the idea of publishing this information on social media to introduce the Danube ports to people was born. There were shipowners who had never even heard of ports like Izmail and Reni.
Q2. Is there real competition between the Danube ports and ports of Greater Odessa, or are they different markets catering to different clients?
There is competition in the coaster segment. Though proformas are similarly high in both Greater Odessa ports and on the Danube, you may witness interesting situations when a freight rate for carrying 3,000 tonnes of cargo from Izmail can be lower than that for 5,000 tonnes from Odessa. Bystroe wins on cost there. Unfortunately, tariffs in the Sulina channel remain at a high level.
Q3. In ten forthcoming years, is Danube logistics going to experience growth or stagnation, or does it depend on how the war ends?
It depends on whether the Danube will be needed at the state level. There is a category of cargo where the trade lot doesn’t exceed 2,000 to 3,000 tonnes, flaxseed or other niche commodities. There are importers and exporters who operate in small parcels, and they matter too. For them, the Danube makes more economic sense.
Q4. Investment in port infrastructure continues even during the war: dredging, fleet, terminals. Which project do you think is needed most?
Right now, unfortunately, investment in the Danube from the Ukrainian side is minimal.
In my view, the most pressing issue is the draft in the Bystroe channel. Today it stands at 5.5 metres. Only river-sea vessels can transit Bystroe, while any vessel drawing more than 5.5 metres has to use the Sulina channel.
It is entirely realistic to bring Bystroe up to 6.5 metres. I remember it reaching even 6.7 at one point, though not for long. The channel silts up quickly and requires constant maintenance works.
Then there is the fee structure. When a vessel transits Bystroe to call at Reni, the shipowner pays around $4,000 for passage through Izmail's territorial waters, which is a pretty strange arrangement in my view. The requirement for two pilots on the section between mile 44 and mile 64 also raises a lot of questions. That adds another two to three thousand dollars onto the shipowner's costs. On a 6,000-tonne cargo, that is $0.50 off the freight rate.
Q5. Railway, roads, land infrastructure. Which is the biggest problem for a cargo owner working on the Danube?
In my view it's the railway. If I'm not mistaken, electric locomotives can haul cargo as far as Izmail, but beyond that towards Reni there is no power supply, so only diesel traction is available, and rail rates for the Danube are very high. Overall, logistics in the region is a problem right now. The lack of proper rail connections to the southern part of Odessa Oblast means road transport involves a long detour through Palanka.
Q6. What surprises clients the most when they first encounter the realities of the Danube? Is there a misconception which you have to explain over and over again?
The first place goes to the cost of a vessel call. It consists of the Sulina or Bystroe channel dues plus port fees – often the sum to pay appears higher than that for calling at Greater Odessa ports.
The second is the paperwork. Almost as much as in some American ports. Captains arriving on the Danube for the first time go wide-eyed when they see the document list we send over. But that is where we as agents step in. We handle all the corrections and discrepancies ourselves so we don't trouble the crew.
Q7. More and more women are entering port agencies, but the broader shipping industry tells a different story. Have you personally encountered bias, or is that already becoming a thing of the past?
I have never encountered it. If anything, I think women have it somewhat easier in this profession. Sometimes a smile at a difficult inspector goes a long way. Emotionally it can be harder, because women process things differently, and situations on the water can be tough. But overall, the attitude is very good, there is no division along gender lines.
Q8. Which port's agent would you swap places with for a month?
For a month I would swap with an agent in Shanghai or another Chinese mega-port. I would love to see their bulk cargo automation in action, especially the loading and discharging operations on bulkers.
