Transportation of grain by rail to ports has become cheaper
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Prices for grain transportation within the country have fallen due to reduced demand and reduced border clearance.
The cost of delivering grain by rail to the western border and seaports has decreased compared to last week. This is reported by Spike Brokers.
The reasons for the decrease in tariffs were the decrease in demand for rail transportation and the decrease in grain transit volumes through border crossings.
At the same time, the cost of transporting grain by rail to Europe remains stable. This is explained by the presence of long-term contracts that help smooth out temporary market fluctuations, brokers note.
According to Spike Brokers, the delivery of grain from the western border of Ukraine to Italy costs €35-40/t for old harvest and €45-50/t for new. The cost of transportation to Germany is €33/t, and to the Netherlands is €40/t. The difference in tariffs between old and new harvests is on average €5-10/t, depending on the country of destination.
Current transportation rates in Ukraine:
• Zhytomyr region: border — $16-22, port — $19-22;
• Chernihiv region: border — $18-25, port — $16-21;
• Cherkasy region: border — $17-21, port — $15-20;
• Ternopil region: border — $13-16, port — $17-23.
Recently, USM wrote that at the beginning of the month, Ukrzaliznytsia processed 1.4 million tons of grain.