In July, Ukraine exported only 110,000 tons of grain by road – Agro Plovdiv

2023-08-03 16:42:25

Despite the attacks on the Danube ports, exports by water continued as it was far cheaper than land

In July from Ukraine are exported by road 110,000 tons of grain and oilseeds. This indicator was reported by Spike Brokers analysts in their Telegram channel, the APK-Inform site reported.

Tariffs for domestic road transport remained unchanged during the month.

“There is an increase in requests for land transportation to East Germany in early September from various regions of Ukraine. This allows grain truck rates to strengthen in this direction, with a further trend towards slight growth,” the experts point out.

It is also reported that the start of the corn trade in the direction of Italy is creating some demand for grain truck deliveries, but is not allowing rates to be fixed at a level that can be acceptable to carriers.

The market rates for road transport are:

Western Ukraine – Northern Italy – 105-115 EUR;

Central Ukraine – Southern Romania – 65-75 EUR;

Western Ukraine – Eastern Germany – 110-120 EUR.

Under the Black Sea Grain Deal, which came into effect in August 2022, almost 33 million tons of grain and other food were exported until it was suspended on July 17, 2023.

After that date, Russia directed its missiles and drones at Danube ports, first hitting Reni. Missiles fell 200 meters from the border with NATO member Romania. Then a large part of the port infrastructure of Chernomorsk was destroyed, along with 60,000 tons of production.

19 drone attacks on Danube ports were recorded during the night of July 24, hitting Ukraine’s main alternative export routes.

On August 2, Russian drones attacked the Danube port of Izmail, according to a local official.

Although the latest attacks temporarily closed ports, it appears that all Danube ports quickly returned to normal operations.

The reason for transporting large quantities by boat is that the water amount is the lowest cost, and all other routes will add costs to the grain and the price will increase,” say experts.