Logistics has remained one of the most challenging issues for Ukrainian exporters of grain processing products since the start of Russia's full-scale invasion of Ukraine in 2022. This was shared by Rodion Rybchynskyi, Director of the Association of Ukrainian Flour Millers, at the "Baltic Grains & Oils Conference" in Riga on April 16.
“The corridors of cooperation have been a great help to us, meaning the open routes provided by European countries on their railways, including those to the Baltic ports and Polish ports. However, this still doesn’t fully compensate for the losses we have incurred since the beginning of the war,” the speaker noted.
According to him, there is the option of shipping products via the Danube to the port of Constanta, but there are still military risks. Insurance companies assess these risks as high, which, in turn, results in significant logistics costs.
“The Baltic ports are attractive because they offer direct container lines and the possibility to ship to places like North America and South Asia. However, it’s a much longer route for goods to reach those destinations... In fact, compared to 2021, only the port of Ventspils handled slightly more Ukrainian products, while all the other ports saw a decline. For instance, the volume through the port of Klaipeda in 2023 was almost cut in half,” said R. Rybchynskyi.
At the same time, Polish ports have significantly increased the transshipment of Ukrainian products, particularly grain processing products.
However, Baltic ports remain important alternative export routes for Ukraine, according to the expert. Among the main advantages are access to Northern and Western Europe, delivery times, stable climate, modern infrastructure, fewer traffic jams, and, most importantly, shipping safety. The drawbacks include logistics costs that are 2-3 times higher compared to Danube ports, higher cargo handling fees, and “narrow” spots on the railway.
