Ukrainian rail transportation 2021: grain continues to lose ground

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

The railways showed growth in the volume of transported goods for the first time after nine years of decline;

• The volume gained 2.9% from 2020;
• The increase was driven by economic recovery from the Covid-19 crisis.

The key 2021 trends were as follows:

• Grain deliveries decreased by 4.3% from 2020
• The grain share in overall rail freight turnover dropped to 10.7%
• Small transportation volumes in the first half of 2021 amid a 2020/21 crop decline

Noteworthy is that November 2021 witnessed the all-time largest grain transportation volume of 4.1 MMT, compared to the 4.0 MMT transported by rail in November 2021, UkrAgroConsult reports.

According to the State Statistics Service, the rail freight tariff for grains was raised by 4% in 2021 that is one of the smallest increases in the past decade. At the same time, the gap between rail freight tariff classes narrowed in September that put up the cost of grain transportation by another 8%.

Ukrzaliznytsia is set to refrain from additionally raising freight rates in 2022. However, they will rise by another 6% from January 2022 under a two-step freight rate increase approved in the latter half of 2021.

Full version of the article is available to subscribers for Online Analytics “Black Sea Grain” in the new innovative tool for agri market participants – AgriSupp by UkrAgroConsult. Subscribe to a 7-day free trial!!

Start using analytical data and increase your efficiency now!

Register to get your demo access: http://agrisupp.com/en/register/1

UkrAgroConsult

Tags: Ukraine, grain, rail transportation