Grain trucks will increase in price by UAH 400 per day from November

Previously, the company planned to raise the rate to UAH 8,000, which was opposed by the agricultural business.

Ukrzaliznytsia will increase the rate of payment for the use of grain wagons in November to UAH 3,771 per day excluding VAT. This figure is UAH 400 higher than in October, writes Elevatorist, citing company data.

The actual figure turned out to be significantly lower than the announced one. At the end of September, UZ published a table according to which, from November 1, the rate for grain wagons was to be 8,000 hryvnias per wagon-day. After that, the Ukrainian Agrarian Business Association called on the company and the government to reconsider the decision.

Rates for other types of rolling stock are also increasing. Cement wagons converted into gondolas will increase in price by UAH 100 — to 1,498 per day. The rent of gondolas will increase by the same amount, to UAH 1,850. Tank trucks for transporting food products will also increase in price by UAH 100 – up to UAH 1,850 per day.

It should be noted that since the beginning of the year the cost of using a grain truck has increased approximately threefold. Thus, in January the rate for grain trucks was UAH 1,250 per day, in May – UAH 2,660, from June to September it remained at UAH 3,271, and in October it increased to UAH 3,371.

For farmers and grain traders, each increase means additional logistical costs, especially during long-term turnover of wagons or downtime at stations and border crossings. Due to the high share of transportation costs in the final export price, their increase may be partially reflected in purchase prices within the country.

The total costs also include the tariff for transportation, delivery and collection of wagons, shunting operations, downtime and reloading.

Also, the day before, USM reported that Ukrzaliznytsia has limited grain transportation to Hungary and Poland.