Grain shippers fulfill orders by only 50%, – Ukrzaliznytsia

In Ukraine, only 9,000 of the agreed 17,000 wagons were loaded and shipped during October.

Non-fulfillment of agreed orders for the transportation of grain cargoes (plans) in the direction of western border crossings by senders reaches 49%, writes Rail.insider.

According to Valery Tkachov, deputy director of the commercial work department of JSC “Ukrzaliznytsia”, only 9,046 wagons were loaded and shipped in October, when 17,709 wagons were agreed.

“At the same time, part of the senders received a refusal to agree due to the limited capacity of border crossings and a large number of orders, that is, they lost the opportunity to transport goods for export. And those senders who received such an opportunity do not fulfill their load plans,” said the representative of the UZ.

The percentage of implementation of agreed plans for food products (sunflower oil and others) is approximately 50%. So, the loading of 1,585 wagons was agreed, 790 were actually loaded. The main reason for the failure to fulfill the plans is the overestimation of the plans by individual exporters.

Valery Tkachev emphasized that this leads to a decrease in the export potential of railway transport and inefficient use of border crossings.

Market participants are convinced that there are several options for solving the situation. In particular, financial responsibility for non-fulfillment of agreed plans (in the amount of a three-day rate for the use of a wagon, or the average cost of an empty wagon for loading, or another fixed amount), as well as administrative responsibility (consider the possibility of measures to influence the sending companies on the part of the UZ).