New UZ tariffs for container transportation contradict maritime logistics standards, — AMEU

The Association of International Forwarders of Ukraine has appealed to the government regarding the new tariffs of the Ukrainian Railways for container transportation.

We are talking about the initiative of JSC “Ukrzaliznytsia” to review the tariff policy, namely – to increase rates for container transportation weighing more than 26 tons, the AMEU said in its appeal.

“This decision, in our opinion, jeopardizes the further development of the container railway segment, reduces its competitiveness, and – most importantly – contributes to the growth of the share of motor transport, which often operates outside the legal framework,” the association noted.

In particular, according to AMEU companies, more than 95% of container cargo towards the ports of Greater Odessa and internal regions is delivered by motor transport.

“This is critically low for the railway segment. The main reasons: flexibility of routes, speed of delivery (1 day by car versus 4-5 days by rail), lower operating costs on the “last mile,” the AMEU emphasized.

Experts add that the proposed tariff limit of 26 tons contradicts the standards of maritime logistics and discriminates against container transportation, which fully complies with these standards.

The association also stated that currently container carriers do not have access to the benefits provided for intermodal trains, which are mainly used for grain cargo.

The Association of International Freight Forwarders of Ukraine proposes:

• To stop any actions to revise tariffs for container transportation weighing more than 26 tons until the completion of open consultations with market participants and the expert community;

• To set the maximum threshold for the application of increased tariffs at a level not lower than 28.5

net tons, which corresponds to international standards of maritime container transportation and actual market practice;

• To ensure equal access for all operators to tariff incentive mechanisms, including carriers engaged in container transportation, on terms similar to intermodal trains of the grain group;

• Create an interdepartmental working group under the Ministry of Community and Territorial Development with the involvement of representatives of the business community, JSC “Ukrzaliznytsia”, the Ukrainian Railways Union and specialized associations, in order to develop an agreed long-term tariff strategy; • Develop and implement a state program to support railway container transportation.