Ukrzaliznytsia Raises Tariffs on Grain Car Rentals for Farmers

In February, Ukrainian farmers faced another challenge: the cost of renting grain cars from Ukrzaliznytsia has increased. While grain producers are trying to minimize expenses due to low global prices, the state carrier has decided to revise the tariffs for using the cars, complicating the planning of exports and logistics of products.

This is reported by AgroReview

New Logistics Tariffs: Impact on Farmers

The fees for using Ukrzaliznytsia’s own cars have risen again, and now participating in the Prozorro auction system for farmers resembles a kind of lottery. Previously, prices remained relatively predictable, but now their dynamics depend on the consistently high demand for cars. According to the official position of the railway workers, the increase in tariffs is due to efforts to transport the remaining harvest, which creates additional pressure on the logistics system.

“The logistics component in Ukraine is already one of the most expensive in Europe, and such maneuvers by the state monopolist only add fuel to the fire. Many are already beginning to wonder if it would be cheaper to leave the grain in the silos until better times than to pay astronomical sums for the provision of cars.”

For farmers, especially those located far from ports, this means a reduction in net profit from each ton of grain. Given the already high logistics costs, the prospects for shipping the harvest are becoming increasingly less attractive.

Forecasts and Alternatives for the Market

Analysts expect that the increase in rental fees for cars may lead to a temporary reorientation of some cargo flows to road transport. However, due to the limited capacity of trucks, the state of the roads after winter, and weight limits, this option cannot fully compensate for railway transportation.

In such conditions, agricultural producers are advised to carefully plan each shipment and try to secure contracts in advance. The competition for the right to use a car is intensifying, and the one who manages to book logistics faster than others will win. The situation forces constant adaptation of export strategies, as the rules in the market change even during the game.