Russian attacks on Ukraine’s ports increase logistics costs and put pressure on grain purchase prices — Nibulon

Russian strikes on the port infrastructure of Ukraine’s Odesa region continue to disrupt agricultural exports and increase logistics costs. According to Serhii Kalkutin, Logistics Director at Nibulon, rising freight rates and transportation expenses directly affect grain purchase prices and reduce the profitability of agricultural production.

He noted that the additional logistics costs ultimately fall on farmers, as logistics remains one of the key components of export costs. Higher transportation expenses force exporters to adjust grain purchase prices, negatively affecting producers’ revenues.

To minimize the impact of security risks, Nibulon has built a diversified logistics model based on alternative export routes. This approach enables the company to quickly redirect cargo flows and maintain uninterrupted shipments even amid attacks on port infrastructure.

The company also continues to actively purchase grain through its own network of grain elevators. Farmers are offered flexible cooperation options, including selling grain at current market prices or storing it for later sale when market conditions become more favorable.

Nibulon emphasizes that this flexible operating model is an important tool for supporting agricultural producers during a period of high market volatility and persistent risks to export logistics. At the same time, the company continues to adapt its logistics solutions to ensure stable exports of Ukrainian grain despite ongoing security challenges.

Tags: Nibulon