Rail transportation of grain to Odesa ports drops by over 80%

Rail grain transportation toward seaports fell sharply at the beginning of August. In the first five days of the month, 40.8 thousand tonnes of grain were delivered to the ports – 84.3% less than during the same period in July, when the volume reached 259.1 thousand tonnes.

Average daily unloading at ports as of August 5 shrank to 192 wagons – 498 wagons fewer compared to the figure as of July 30. There were 568 grain hoppers en route toward the ports, which is 788 wagons fewer, reported brokerage company Spike Brokers

Average daily loading of grain for port direction collapsed to 52 wagons. Compared to late July, the indicator dropped by 528 wagons per day.

Overall, during the first five days of August, Ukrainian railways transported 182 thousand tonnes of grain cargo and milling products. This is 44.1% less than at the beginning of July, and 40.8% lower than last year's figure.

Average daily loading of grain cargo on the railway network decreased to 26.6 thousand tonnes – 47% less compared to July.

Against the backdrop of the decline in deliveries to Greater Odesa ports, the Danube direction gained momentum. The number of grain hoppers heading to the Danube cluster rose to 1,296 wagons, or 155 units more. Average daily unloading rose by 106 wagons, to 157 per day.

Overland routes also performed more stably than the sea route. Transfers of grain cargo and meal through border railway crossings averaged 142 wagons per day, 2.2% more than the July level.

The largest increase occurred in deliveries via Romania and Poland. Meanwhile, the number of grain hoppers accumulated en route to the western border increased by 41.2% – from 369 to 521 wagons.

Automotive exports of agricultural products from August 1–6 grew by 11.3% – to 59.6 thousand tonnes. However, the capacity of this channel is not sufficient to offset the reduction in large-tonnage deliveries through seaports.

Total exports of Ukrainian agricultural products over the first six days of August dropped by 60.1%, from 784.5 to 312.9 thousand tonnes. Meanwhile, export revenue fell by 38.4%, from $326.9 million to $201.5 million.

The biggest decline was recorded in the grain segment. Wheat exports decreased from 294.9 to 93.2 thousand tonnes, while corn – from 293.7 to 33.5 thousand tonnes.

Based on materials from: Spike Brokers