Delays in edible oil shipments could force Ukrainian oilseed crushing plants to shut down

Delays in edible oil shipments could lead to the shutdown of oilseed crushing plants in Ukraine. The Ukroliyaprom Association has called on Ukrainian Railways and the Ukrainian Sea Ports Authority to coordinate rail and maritime transport operations to ensure the timely shipment of finished products.

According to Stepan Kapshuk, Director General of the association, storage tanks at crushing plants have enough capacity for only 5–7 days of production. If finished oil is not shipped on time, plants are forced to shut down production lines and stop accepting raw materials.

Ukroliyaprom emphasizes that tank railcars used to transport edible oil do not compete with grain hopper cars, as these types of rolling stock are not interchangeable. Moreover, according to the association, a single train carrying edible oil can generate foreign currency earnings and tax revenues equivalent to those of 4–5 grain trains.

Another major challenge is delays affecting edible oil tankers in the Black Sea. Long waits for pilotage services or convoy assignments increase shipowners’ costs and may discourage them from operating at Ukrainian ports.

To stabilize the industry, Ukroliyaprom has proposed that Ukrainian Railways introduce a coordinated operating schedule and allocate locomotive capacity for edible oil shipments. The association has also called on the Ukrainian Sea Ports Authority to ensure timely pilotage services and the entry of tankers into liquid bulk terminals.

Tags: export, logistics, edible oils, UkrOliyaProm Association