
The transport logistics market
of Ukraine is going through difficult times. Service companies and forwarders
are facing challenges that are likely to continue until late crop harvest
begins. Today, forwarding companies that rent rolling stock are experiencing a
similar situation, said Olexandr Shatailo, Bulk-Trans, during the Trend&Hedge
Clube online meeting on 14 Aug.
The main reason for such
problems is that most agricultural holdings and traders have their own fleets
and wagons. This reduces their dependence on the services of third-party
companies, which, in turn, negatively affects service companies and the
transportation market as a whole.
With the beginning of the war,
the narrative about the lack of wagons became a thing of the past. Many
manufacturers and agricultural holdings purchased their own wagons, which
reduced the demand for Ukrzaliznytsia wagons. However, despite this,
Ukrzaliznytsia still conducts auctions for the rental of wagons, although the
rates remain relatively low.
O. Shatailo confirms the
presence of forward contracts for logistics, which are concluded until April
2025. This allows companies that have their own rolling stock to predict routes
and reduce transportation costs. The reason for this is not oversaturation of
the market, but a decrease in yield and the desire of companies to be
independent from the service market.
“Mobilization also affects the
market, especially the availability of drivers. Although the situation is
currently stable, driver shortages could become a serious problem during the
late crop harvest, which could lead to higher freight rates”, - said the speaker.
As for logistics on the western
borders, the situation remains calm for now, but everything could change with
the start of processing and an increase in transportation volumes.
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