Increased supply of trucks for grain transportation reduces the cost of road haulage from 2-2.2 UAH/km to 1.6-1.8 UAH/km or 30-40 $/t (including VAT). As a consequence, the volume of rail transportations decreases, the tariffs for which rose again on January 1.
This is reported by ProAgro Group with reference to GrainTrade.
The demand for Ukrzaliznytsia’s grain wagons is also falling, as carriers and cargo owners are actively using their own fleet of grain wagons.
Valeriy Tkachov, Deputy Director of Commercial Work Department of Ukrzaliznytsia told on the 20th of January at the meeting with grain market representatives about grain carriers supply auctions in February which were held on the 17th and 18th of January, and the activity was very low. Thus, on January 17, only 1,500, or 22.2%, of 6,750 grain carriers were sold.
Increased grain car offers will reduce the cost of transportation in the second half of the season, which will pull down the rates of trucking, especially given the increase of the fleet of trucks from producers and carriers due to the high profits obtained during the harvesting of corn and sunflower, when transportation tariffs reached 2.5-2.7 UAH/km with VAT.
