Tariffs for the transportation of grain by rail within Ukraine have decreased due to falling demand and reduced volumes of transportation through border crossings. This helped to reduce the cost of logistics for farmers who ship their products both to European countries and to ports for further export, Landlord reports.
At the same time, the rates for grain transportation by rail to Europe remained stable. Brokers explain this by the availability of long-term contracts that smooth out short-term market fluctuations.
How much does grain transportation cost?
The cost of grain delivery from Ukraine’s western border to European countries:
- Italy: 35-40 €/t for old crop, 45-50 €/t for new crop.
- Germany: 33 €/t for the old crop.
- Netherlands: 40 €/t for the old crop.
On average, the difference in the cost of transportation of old and new grain is 5-10 €/t, depending on the country of destination.
In Ukraine, grain transportation tariffs are as follows:
- Zhytomyr region:
to the border – 16-22 $/t
to the port – 19-22 USD/t. - Chernihiv region:
to the border – 18-25 $/t
to the port – 16-21 $/t - Cherkasy region:
to the border – 17-21 $/t
to the port – 15-20 $/t - Ternopil region:
to the border – 13-16 $/t
to the port – 17-23 $/t
Reducing the cost of grain transportation within the country may support exporters, but the market situation remains dynamic.
