Ukrainian Maritime Trade in 20242025: Operational Resilience Amid Ongoing War

Arthur A. Nitsevych, Interlegal Ukraine

In the fourth year of full-scale war, Ukraine’s maritime sector continues to demonstrate remarkable resilience and adaptability. Cargo volumes handled by Ukrainian seaports rose significantly, underscoring the effectiveness of the country’s wartime logistics model. The maritime corridor, tailored insurance schemes, and new intermodal transport solutions have become essential pillars supporting the continuity of maritime trade under constant threat.

How does the Ukrainian maritime and logistics sector function under current conditions? Which mechanisms have enabled ports to remain operational? What risks persist? And what lies ahead for Ukrainian maritime trade in 2025?

Record Cargo Volumes and Agricultural Exports

Despite the continued risks and disruptions caused by Russia’s war against Ukraine, the Ukrainian seaports achieved a historic milestone in 2024, processed a record 97.2 million tons of cargo — a 57% compared to the previous year. According to the Ministry for Communities and Territories Development of Ukraine, agricultural goods accounted for approximately 60 million tons of the total cargo volume in 2024, reinforcing the crucial role of Ukrainian seaports in global food supply chains. Overall, 88.1 million tons of cargo were exported by sea, compared to 56.2 million tons in 2023.

This performance highlights not only the resilience of Ukraine’s maritime sector but also the vital safety and logistical mechanisms that support maritime operations under war conditions.

The Ukrainian Maritime Corridor: Functioning and Traffic Governance

The Ukrainian corridor is considered one of the greatest achievements in the maritime industry since the full-scale invasion.

Following Russia’s withdrawal from the Black Sea Grain Initiative on 17 July 2023, Ukraine established alternative temporary routes for civilian vessels in and out of the ports of Greater Odesa on 8 August. These navigation routes remain in force under Coastal Warning No. 122/23.

The Ukrainian maritime corridor —connecting the ports of Odesa, Chornomorsk, and Pivdennyi—is now coordinated through an institutional framework involving the Navy, the State Border Guard Service, the Marine Search and Rescue Service, and the Ukrainian Sea Ports Authority.

The navigation safety of the corridor has been ensured by the Naval Forces, which provides protection for cargo vessels and explosive ordnance disposal. Navy ships continue to escort convoys along designated safe routes. Navy divers neutralized a significant number of drifting mines in 2024, so no incidents of vessel detonation were reported within port limits.

Access to the corridor is tightly regulated. Vessels flying the Russian flag, sanctioned, owned by sanctioned individuals or entities, or those in breach of sanctions are prohibited from entry. Navigation is permitted only in convoys, coordinated via prior applications submitted by shipping agents and organized under a daily convoy formation plan.

The Ukrainian Sea Ports Authority (USPA) coordinates all vessels in accordance with special procedures, as well as mandatory orders and the customs code for the respective ports.

By launching missile strikes on Ukrainian ports and docked ships, Russia is attempting to render Ukrainian maritime exports impossible–through outright destruction or by intimidating shipowners, increasing logistics costs and reducing Ukraine’s competitiveness in the global market. Nevertheless, the maritime corridor continues to operate.

A total of 9,061 commercial vessels transited the Ukrainian maritime corridor in 2024 — 4,651 inbound and 4,410 outbound — according to the Ukrainian Navy. With nearly 80% of Ukrainian exports transported by sea, the uninterrupted functioning of the corridor remains critical for both national economic stability and international food security.

Insurance

Due to the ongoing hostilities Ukrainian territorial waters remain classified as high-risk zones by the Joint War Committee (JWC). Standard Protection & Indemnity (P&I) and Hull & Machinery (H&M) insurance policies do not cover war-related risks, requiring additional extra war risk insurance (EWRI) to cover damage or loss for vessels entering Ukrainian ports.

Initially, after the end of the Grain Initiative, market forecasts anticipated EWRI costs rising to 5% of a vessel’s value — a level that would render many voyages economically unfeasible. However, in November 2023, Marsh McLennan, in partnership with the Ukrainian government and Lloyd’s, announced a major expansion of its Unity insurance facility.

Unity now provides affordable war risk coverage for ships carrying non-military cargo, including iron ore, steel, and containerized goods. With total coverage under P&I and H&M policies of up to USD 50 million, the EWRI rate has been set at the more sustainable level of 1.25%. The program is supported by Ukrainian Ukreximbank and Ukrgasbank, which provide bank guarantees, confirmed by Germany’s DZ Bank.

Containerized Cargo and Intermodal Logistics

One of the most encouraging signs of recovery in 2024 has been the partial restoration of container traffic through the ports of Greater Odesa (Odesa, Chornomorsk, and Pivdenny). Since the beginning of the year, around 300,000 containers have been handled across all routes. Forecasts remain unchanged: one-third of container traffic is expected to transit through Ukraine directly, with the remaining two-thirds handled via neighboring partner countries.

It should also be noted, that at the beginning of the war, the industry suffered significant losses due to infrastructure and logistical challenges. Until late 2023, the Danube ports of Izmail and Reni, along with Ukraine’s land borders, remained the only viable export routes. This shift accelerated the development of intermodal logistics solutions, with Ukrainian operators adapting to new realities.

Risks and Challenges

In terms of the challenges and risks we face, what we saw in 2024 is likely to occur in 2025 as well.

Port and energy infrastructure strikes. Russian forces continue to target Ukrainian ports with drone and missile attacks. However, air defense systems have proven effective in protecting key infrastructure. During air raid alerts, port operations are temporarily suspended, and personnel take shelter. While this disrupts operations, human safety remains the top priority.

Russia has also intensified strikes on Ukraine’s energy infrastructure, aiming, among other things, to disrupt or significantly hinder the functioning of the maritime corridor. Stable electricity is critical for the operations of ports, grain elevators, and terminals.

Mine threat. Sea mines remain a major hazard to navigation in the Black Sea. Over the past two years, more than 50 mines have washed ashore on the Romanian coast, with dozens more in Ukraine and neighboring countries. In response, Turkey, Romania, and Bulgaria have launched a joint mine-sweeping initiative tasked with detecting and neutralizing sea mines, which is expected to restore safe navigation in the region.

Blocked ports. Unfortunately, the ports of Mykolaiv and Kherson remain inaccessible due to their proximity to occupied territories. A number of vessels have been blocked there since the beginning of the full-scale invasion. Port calls to these ports remain impossible.

Outlook for 2025

Looking ahead, Ukraine’s logistics sector is expected to continue operating in a highly complex and dynamic risk environment throughout 2025. Nevertheless, its demonstrated ability to adapt swiftly confirms the sector’s resilience and capacity to navigate unprecedented challenges.

The ongoing war has significantly increased demand for logistics services, creating new occasions for logistics companies. Ukrainian maritime and transport businesses must adapt to emerging challenges and continuously seek innovative solutions. This fosters new opportunities for industry development and improved logistics efficiency across Ukraine.