Головна Logistics Grain shipments are hampered by problems at Ukrzaliznytsia

Grain shipments are hampered by problems at Ukrzaliznytsia

A record grain harvest in Ukraine and high export rates have led to an increase in the volume of grain transportation from the elevators of G.R. Agro to Ukrainian ports by 4 times compared with 2020. This is reported by ProAgro Group, citing the company’s information.

However, the intensification of grain shipments has revealed a number of logistical problems. In particular, amid high demand, “Ukrzaliznytsia” has raised the cost of renting grain carriers to a maximum of the last few years. So, this year, during the period from July to October, the cost of 1 ton of grain transportation by railway lines increased fourfold – from 380 to 1555 UAH.

Among the major problems of the season can also be mentioned the lack of cars and delays in delivery of cars by elevator requests. In case of under-delivery of the declared number of railcars to the elevator by UZ, there is a problem of under-unloading of grain volumes under the contracts.

This year the number of abandoned loaded cars on the tracks, waiting for their separation between the stations, has tripled. Downtime can reach 4-5 days. Accordingly, this leads to delays in shipments of already distributed railcars and disruption of the main terms of delivery of products to Odessa and Mykolayiv ports.

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