Balance without a breakthrough: freight rates stalled, corn puts pressure on logistics

In late October, the freight market for grain transportation from Ukraine showed stability in most directions and for various types of vessels. Following a brief increase in rates the week before, owners of small bulkers (coaster fleet) faced difficulties maintaining high tariffs. The supply of tonnage in the region increased, which stopped further rate growth, notes analyst Maksym Kharchenko.

In the Handysize segment, the situation is also balanced: rates remain stable due to moderate demand for transportation from Black Sea ports and a limited number of available vessels. The market is in a state of equilibrium — without sharp fluctuations in demand or supply.

The company “UkrAgroConsult” reports that current freight rates for corn transportation are: Panamax (to South China) — $45–47/ton, Handysize (to Italy, 30 thousand tons) — $23–25/ton. Meanwhile, Italy became the key destination for Ukrainian corn exports in October.

The increase in logistics costs may restrain farmer sales, especially in regions with difficult access to ports. The active arrival of corn creates pressure on the railway infrastructure, which can lead to local delays and increased transportation costs.

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