Last week, there was a further decrease in tariffs in the segment of internal rail transportation of cereals. According to Spike Brokers analysts, the rates have decreased again by a few dollars per tonne, which indicates the weakening of market dynamics.
The key factors of this trend are the completion of the main logistics season and the lack of new export demand. In such circumstances, operators are forced to adjust their tariff supply, focusing on limited demand. In many regions, the excess rolling stock is fixed, which increases price pressure.
Competition is increasing by motor vehicles – especially on short routes, where shippers are more likely to choose road transportation thanks to more prompt service.
In the short term, market participants are restrained: before the start of the new season, the situation is unlikely to change significantly, and the level of demand will remain low.
Estimated tariffs for the transportation of grain by rail within Ukraine:
- Zhytomyr Region: to the border-$ 15-20/t, to the port-$ 16-19/t
- Chernihiv region: to the border-$ 17-22/t, to the port-$ 16-21/t
- Cherkasy region: to the border-$ 18-21/t, to the port-$ 16-22/t
- Ternopil region: to the border-$ 13-15/t, to the port-$ 17-23/t
Export rates to the EU:
- Chop-Mon-Skh Italy: 39-40 €/t
- Dorohus-Mon-Zh Germany: 38-43 €/t
- Dorohus-Netherlands: 40-49 €/t
