Logistics and grain transportation in Ukraine

The grain logistics market in Ukraine is growing and developing every year. Given that more than half of the arable land is used for growing grain crops, the volume of grain transportation in Ukraine increases significantly during the sowing and harvesting campaigns. A large amount of grain is exported, and therefore significant volumes are transported from the central and northern regions of Ukraine to the Black Sea ports and the western borders with the EU.

The most common methods of grain transportation in Ukraine

One of the most common ways to transport grain is by road. Grain crops are hygroscopic and require special delivery methods. There are two methods of transportation: bulk and containerized. The bulk method involves using open-body vehicles with a carrying capacity of up to 20 tons, while the containerized method involves transporting grain consignments in packaging, the so-called big bags. Both methods have their strengths and weaknesses.

The unpackaged method of bulk grain transportation uses grain trucks, which have many advantages over other vehicles and are designed exclusively for bulk cargo. They can also be used in multiple-body combinations, which allows for increased cargo volume and reduced fuel consumption.

In addition to road transportation, rail transportation is also quite popular in the grain logistics market in Ukraine. Grain crops are often transported by rail in specialized grain carriers that ensure the safety and quality of the cargo. Railways can quickly deliver large quantities of grain over long distances, which is why this mode of transportation is used for long-distance transportation. It is worth noting that by 2022, the railroad delivered about 65% of grain to export terminals in ports.

Another way to transport grain is by river. Ukraine has a great potential for river transportation of grain and oilseeds. However, transportation of grain by river requires additional investments in barges and river terminals, so the price for this transportation is somewhat higher.

How the cost of grain transportation is calculated

of using multimodal transportation should also be considered to reduce the cost of transportation and make it more efficient. It should be noted that the cost of transportation by road is highly dependent on the price of diesel fuel and the time of year due to seasonal demand for transportation.
As of today, the grain logistics market in Ukraine is quite developed and open to competition. Accordingly, the price of grain transportation may vary depending on many factors, including transportation distance, cargo volume, type of grain, mode of transport, etc.

In general, the most economical and convenient way to transport grain in Ukraine is by road. It allows for fast and safe transportation of small consignments of grain from households to elevators. At the same time, the price of grain transportation remains within the range of affordability for most agricultural companies.

Thus, the grain logistics market in Ukraine is an important component of the country’s agricultural sector. And despite the difficulties associated with the transportation of grain over long distances, there are well-developed and efficient transportation methods that allow for a constant supply of this product to foreign markets.