The rates for rail transport fell sharply in September

In September, the total fleet of grain trucks of Ukraine increased by 165 units to almost 32 units, of which more than 60% are private wagons. But if in August rates for rail transportation of grain to ports rose sharply and sometimes doubled the cost of road transportation, then in September rates for CTL wagons in the electronic trading system "Prozorro" decreased against the background of reduced demand for grain trucks in the direction of the western borders and uncertainty with further work grain corridor, the agreement on which ends on November 22.

Ukrzaliznytsia reported that the share of CTL grain trucks in the total load reaches 29.4%, but the profitability of their use is decreasing due to the drop in rates. Thus, at the last auctions for deliveries by grain trucks, rates for transportation in 10 days decreased by almost 30% - from UAH 4,738/day in the third decade of October to UAH 3,150/day in the first decade of November.

Of the 17,500 consignments offered for November, only 28.4% of auctions or 4,972 consignments were successfully traded, and only 4.5% or 350 consignments of the 7,751 consignments offered for December. The reason for the decrease in demand was uncertainty regarding the operation of grain corridors after November 22.

Ukrzaliznytsia decided from October 25 to 31 to sell unsold shipments at long-term auctions in the "short spot" - for the first decade of November, which can further reduce rates.

In addition, the company states that shippers of grain cargoes do not fulfill the agreed plans of loading wagons in the direction of crossings on the western borders, because during the period of operation of the grain corridor, most of the grain cargoes are redirected to the sea ports of Ukraine. Implementation of plans as of 10/20/22 is only 24.1%, and out of the planned 15,184 grain trucks, only 3,665 wagons have been loaded. Therefore, Ukrzaliznytsia asks shippers who are not going to ship grain to the western borders to cancel the agreed plans, so that other shippers were able to transport their cargo. Only responsible transportation planning will ensure maximum export of agricultural products!

At the same time, the reduction in transportation rates will increase the profits of farmers and exporters, as well as the demand for grain wagons, which will reduce the volume of road transportation and the need for automobile fuel, which Ukraine is currently forced to import.