Rise in rental prices for grain carriers in Nov increases cost of railway logistics to Europe by 30-40% – brokers

KYIV. Nov 16 (Interfax-Ukraine) – The rise in prices for renting grain trucks in November of this year increased the cost of rail logistics to Europe by 30-40% compared to the previous month, so transportation by road is now more profitable, the brokerage company Spike Brokers reported on its Telegram channel on Wednesday.

“The increase in rental rates for wagons by Ukrzaliznytsia and private owners, which were accepted by the same forwarders through public auctions, increased the cost of transportation by 30-40% compared to October rates. In addition, the decrease in the speed of movement of wagons led to the fact that transportation by road has become more profitable, even at distances from Chernihiv region to the ports of Odesa,” the analysts said.

According to the report, the average transfer of agricultural cargo to Europe by rail in November is 487 wagons per day.

“The largest flow of goods by wagon remains at the border crossings with Romania and Poland, and the average daily volume of cargo transferred through these points was 125 wagons per day in November, respectively,” they said.

At the same time, market rates for transportation by rail as of November 15 are in the direction Kharkiv region – Danube ports of Ukraine at the level of $52-60 per tonne, Lviv region – Polish border – $20-35 per tonne, Lviv region – Hungarian border – $26- 39 per tonne, Lviv region – Romanian border – $26-47 per tonne, Lviv region – Odesa – $41-46 per tonne, Rivne region – Polish border – $27-36 per tonne, Rivne region – Odesa – $41-49 per tonne.

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