On 18 May, 2024, the law on mobilization came into force in Ukraine. This put under question the volumes of international cargo transportation via trucks. Some drivers are refusing to go on voyages because they are afraid that they will be stopped at checkpoints and mobilized to army.

Kateryna Mudriian, Chief Agriculture Analyst of ASAP Agri asked Valerii Tkachov, Deputy Director of the Department of Commercial Work of the Ukrainian Railway (Ukrzaliznytsia) if Ukrainian railway ready to support traders in such a situation when truck transportation is on the edge of stopping?

Valerii Tkachov:

Technically, Ukrzaliznytsia is ready to double the volume of transportation. Before the war, we transported 320 MMT of all cargo per year. Now we transport 150 MMT. Of course, we lost part of the fleet, but these losses are not critical, and we are ready to return to pre-war levels. As for the road transportation market, it is currently transporting 40% of the raw materials, but has a lack of dimensional and weight control. But as soon as we see that the government is starting to regulate the tucks transportation, railway transportation is increasing. I support such steps of the state, it must be done so that truck companies to pay taxes, so that there is dimensional and weight control. And indeed, I confirm your words that the mobilization measures really stimulated the growth of transportation by rail. As of today, for the 5 months of the 2024 year, we have record volumes of transportation of grain products by railway - almost 18.6 MMT. This is the best indicator in the last, perhaps, 7 years. And this is also due to mobilization measures. But anyway, "Ukrzaliznytsia" is ready to take these volumes, we have everything for this.

And is there any impact of the mobilization low to the marine shipping? This ASAP agri asked Taras Vysotskyi, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine.

Taras Vysotskyi:

As there is big chance that mobilization low may result in lower amount of commodities shipped through western border, this undelivered volumes may be re-arrenged to seaports. As for seaports, the mobilization has limited impact on it, because this sector has many companies and workers from abroad. Meanwhile, the railway is a critical infrastructure with 100% reservation of male workers from mobilization, so situation there is more or less stable.