Ukraine. Export logistics in August

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

Railway transportation. 1.15 M mt of grain was loaded on August 1-23, 2022. The average daily loading into railcars in August increased compared to July. The average daily number of grain railcars that cross the border heading for EU countries also increased.

The longest lines for crossing the western railway borders in some cases slow exports from 20 to 32 days.

Road transportation. In August, the exports by trucks per day also increased. Main products were rapeseed (27% of the total cargoes exported by trucks), corn (23%), sunflower oil (13%).

Sea transportation. The market keeps a close eye on the operation of the “grain corridor”. As of August 26, about 1 M mt of grain had already left the ports since the launch of the “corridor”. The joint coordination center in Istanbul has agreed to establish a new (faster) route from the Odesa ports.

As the trade via Ukraine’s Black Sea ports builds up, we expect logistic costs going down and strengthening domestic demand will allow farmers to get more money for their grains to finance their field works.

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Tags: corn, export, grain, EU, wheat, rapeseed, Ukraine, sunflower oil