Unblocking the Black Sea ports has reduced the cost of freight on the Danube and shipping to the EU

2022-08-19 12:24:08
Machine translation
Unblocking the Black Sea ports has reduced the cost of freight on the Danube and shipping to the EU

The Minister of Agricultural Policy and Food of Ukraine, M. Solskyi, said that the unblocking of the Black Sea ports will reduce the cost of delivering products via alternative export routes.

 

As of August 8, the cost of freight on the Danube has already decreased by 10-20%, and by the end of the month, according to the ministry's calculations, it will drop by 30-40%. Accordingly, transportation by alternative routes will become cheaper. Last year, the cost of transportation by rail and road was about $7/t, and since the beginning of the war it has risen to $100/t.

 

If within a week the cost of insurance decreased by almost three times, and freight - by 30-50%, then soon the cost of deliveries via alternative routes will decrease to the level of logistics from the Black Sea ports, - the minister believes.

 

First of all, companies that have been successfully working in Ukraine for a long time are ready to export their products through grain corridors. They have their own developed infrastructure in the ports and work systematically. Farmers are interested in selling grain to those enterprises that pay money immediately.

 

The cost of grain delivery to EU countries by car has also increased by 2-3 times compared to pre-war tariffs. Sometimes the cost of grain delivery to the ports of Romania and Bulgaria exceeded 50% of its cost. However, as shipments from the Black Sea ports become more active, transportation prices will decrease, which will allow farmers to receive fair money for grown grain.

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