- Grain car rates up 5%: Ukrzaliznytsia will raise grain car rental to UAH 2,100/day from March 1, tightening margins for grain exporters.
- Food tank cars up 12%: Tank car rates for food products jump to UAH 1,400/day, signaling stronger demand or reduced fleet availability.
- Targeted relief in other segments: Flour car rates drop 42% and gondola rates fall 6.5%, partially easing costs for non-grain bulk flows.
- Net bearish impact on exports: Higher inland rail costs will slightly erode Ukraine’s FOB competitiveness in Black Sea grain markets.
Ukrzaliznytsia Adjusts Freight Car Rental Rates for March
JSC Ukrzaliznytsia’s Transport Logistics Center has announced revised freight car rental rates effective March 1, 2024. The state railway operator will charge UAH 2,100 per day (excluding VAT) for grain cars, a 5% increase from the February rate of UAH 2,000 per day.
Tank cars used to transport food products will see a steeper adjustment, with daily rental rates rising from UAH 1,250 to UAH 1,400, a 12% month-on-month jump. In contrast, two categories will experience reductions: flour transport cars (type 972) will drop sharply from UAH 350 to UAH 203 per day, while gondola car rental rates will decrease from UAH 1,550 to UAH 1,450 per day.
Updated Railcar Rental Tariffs (March 2024)
| Car Type | February Rate (UAH/day) | March Rate (UAH/day) | Change |
|---|---|---|---|
| Grain cars | 2,000 | 2,100 | +5% |
| Food tank cars | 1,250 | 1,400 | +12% |
| Flour cars (type 972) | 350 | 203 | -42% |
| Gondola cars | 1,550 | 1,450 | -6.5% |
Market Impact and Analysis
Bearish for grain exporters: The continued upward trajectory in grain car rental rates adds incremental pressure to Ukraine’s already challenged export logistics costs. The 5% increase in March will marginally tighten FOB pricing competitiveness for Ukrainian origins in the Black Sea market, particularly against Russian and EU suppliers.
The sharper 12% rise in food tank car rates points either to stronger demand for liquid commodity transportation or constrained tank car availability in the network. By contrast, the 42% cut in flour car tariffs and 6.5% reduction in gondola rates provide targeted relief for some bulk flows, but offer limited offset for grain exporters, as these car types are less suitable for standard grain shipments.
Traders and exporters should factor these higher inland freight costs into March export calculations, reassessing basis levels, margin assumptions, and competitiveness in key destination markets.
Source: Market Data
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