Logistical limits for agricultural exports from Ukraine

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

Railway transportation. Although just 59% of available freight transportation potential through the western border crossings is utilized, June agricultural exports reached 978 K mt. It seems that export transportation by rail has reached its peak. However, provided Ukrzaliznytsia (Ukrainian Railways), the neighboring countries make coordinated efforts and if the capacity of border grain terminals is expanded, it is possible to increase Ukraine’s agricultural export potential to 1.2-1.3 M mt per month.

Road transport. June transportation of agricultural products by road rose by 55% against May. This mode of transport still has potential for growth in deliveries. By August, the Infrastructure Ministry is planning to partially open two checkpoints on the Romanian border that will increase the border throughput capacity.

Sea transport. June agricultural exports by sea through the unblocked ports increased by 25% compared to May. Noteworthy, 35-45% of this volume is transit through the seaport of Constanta in Romania. In the Romanian port of Constanta, the handling of Ukrainian export grain has begun in a new way – directly from Danube barges, without ships calling at the terminals. Now the grain is transshipped in the port’s long-water part that allows to significantly speed up the process and boost the cargo flow.

Taking into account the current trends in the logistics market, the latest events, news and the rise in transportation of agricultural products, UkrAgroConsult has quite optimistic forecasts.

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Tags: Ukraine, export, blocking ports