The UDS said that the new harvest did not restore exports across the Danube

Statistics of the Danube Commission indicate a steady decline in cargo handling by Danube ports.

This was stated by the Deputy Director of Economics and Finance of “Ukrainian Danube Shipping” Vladyslav Bielakh in an interview with Latifundist.

According to him, the river transportation market is in a deep crisis. The main problem is freight rates, and the volume of transportation has also decreased several times.

“A lot of fleet – little cargo. In such a situation, market participants need to sit down together and negotiate. But so far, everyone is playing their own game, as a result we have dumping, from which everyone suffers,” Vladyslav Belakh notes.

Compared to 2023, the freight rates at which UDS operates have decreased by approximately 30%.

“Next year, I think our average rate will also decrease by 50%. In general, the trends are disappointing. The UDS fleet is designed for large caravans of 6-9 thousand tons. However, batches of goods are becoming smaller. It is more profitable to export them by rail and road transport. The problem is not only a decrease in exports from Ukraine. The Danube is becoming less interesting globally. The statistics of the Danube Commission indicate a steady decline in the handling of cargo by the Danube ports,” emphasizes the Deputy Director of Economics and Finance of the UDS.

Also this year, the new harvest did not restore exports across the Danube. According to the UDS representative, the company currently works on the Upper and Middle Danube.

“Back at the end of last year, we decided to bet on European grain on the Middle Danube. But today the transport market from Romania, Serbia and Hungary is also unbalanced. Traders, taking advantage of the freight surplus, sell on the spot. They know that at any moment there will be someone willing to take it. But if you are a large company, you need predictability and planning,” explains Vladyslav Belakh.

It should be noted that the entire UDS fleet also operates without unprofitable flights, but the company’s profit does not cover the costs of maintaining the company’s huge staff, as well as the maintenance of the fleet that is not used.

As previously reported by USM, heavy floods on the Danube did not affect the work of the UDS. The company noted that it was difficult to work in the last two months due to the shallowing of the Danube. Due to the low water level on the river, the UDS fleet could not be fully loaded – therefore, currently, the increase in draft is beneficial for the company.