KYIV: Ukraine’s Seaport Authority will from Wednesday reopen the Bystre Canal at the mouth of the Danube, closed since a dredger exploded in late July, analyst ASAP Agri said on Tuesday.

Ukraine had been transporting grain on the Bystre and the Danube as an alternative route for its exports while access to its Black Sea ports was limited in the first year after Russia’s invasion in 2022. Since the ports were unblocked in 2023, Ukraine’s use of the Danube has declined sharply.

The consultancy said in a statement that Ukraine would allow vessels with a draught of up to 4.5 meters to transit the canal.

“The move is expected to reduce disbursement costs for shipowners and support negotiations on Danube-origin freight by narrowing the bid/offer spread,” said Pavel Lysenko, analyst at ASAP Agri.

The Seaport Authority declined to comment.

It said last month it had closed the Bystre after a dredger exploded on 23 July, without giving any explanation for the blast. Traffic was diverted through the Romanian Sulina channel.

ASAP Agri said the cost to shipowners of using Sulina was higher and many had raised their freight quotes for Danube shipments to offset losses.

“With Bystre back in service, market participants expect a partial recovery in Danube freight flows as negotiations become more balanced,” it said.