Agricultural logistics costs in Ukraine have risen by a third due to a spike in fuel prices
The cost of transporting agricultural products in Ukraine has risen significantly amid rising fuel prices caused by tensions surrounding the Strait of Hormuz. Depending on the route and distance, road freight rates have increased by 15–35%.
This was reported by Delo.ua, citing Dmitry Lynnyk, an expert in transport and warehouse logistics.
According to him, the logistics market remained relatively stable for most of the year, but recent fluctuations in the fuel market have forced carriers and logistics operators to revise their rates. Many companies have raised prices by a margin, fearing further increases in oil prices.
Before the price hike, the average cost of road transport for agricultural products from the collection point to the port was about $23–40 per ton, depending on the delivery distance.
At the same time, rail logistics previously cost about $18 per ton, but this segment is also feeling pressure due to rising costs. The cost of transportation is affected by slower railcar turnover and higher grain car rental rates.
The expert notes that future price trends will depend on developments surrounding the Strait of Hormuz and the outcome of negotiations between the U.S. and Iran. If tensions ease, the market may see a slight drop in fuel prices, and with it, logistics costs. Otherwise, carriers may face a new wave of rising costs.
Over the past year, prices for meat and meat products in Ukraine have risen by up to 45% in some areas. Beef remains the most expensive—its price continues to hover at record levels. Experts predict that by the end of winter, meat prices could rise by another 5–7%.
Inflation in Ukraine: prices rose by 0.4% in November.
