Ukraine Grain Transportation
Ukraine Grain Transportation
Department of
Agriculture
Ukraine Grain
Transportation
Published April 2021
Low crop supplies and flagging exports reduced demand for Ukrainian grain-export transportation.1 In 2020,
Ukraine exported 18.1 million metric tons (mmt) of wheat, nearly 10 percent less than 2019’s total of 20 mmt.
Corn exports also declined by 14 percent, from 32.3 mmt in 2019 to 27.9 mmt in 2020 (State statistics service
of Ukraine). The cost of shipping a metric ton (mt) of grain 100 miles by truck decreased from $16.64 per mt
in 2019 to $11.92 per mt in 2020 (table 6) (Zernovoz). This 28-percent drop was mostly due to a decrease in
fuel prices and excess supply of trucks. The excess truck supply was due to Ukrainian drivers returning from the
European Union (EU) because of COVID-19 lockdowns (Centre for Transport Strategies (CFTS)).
Rail rates also declined in response to the increased truck competition. Private grain hoppers’ rents fell
from $62 per day (without value-added tax (VAT)) in November 2019 to $8 per day (no VAT) in May 2020
(Promgruz). Ukrzaliznytsia (UZ) also lowered grain hoppers rent rates, but did so later than private companies.2
16.00
12.00
8.00
Average 2020: $11.92
4.00
0.00
1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
*Grain refers to wheat, corn, and soybeans.
Note: Truck data collected from Zernovoz and JIT+, Kiev, Ukraine.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
1 Andrii Shkliar at [email protected], Andrey Isayev at [email protected], and Pavlo Rudenko at [email protected],
gathered all of the Ukraine data in this report and ensured its accuracy.
2 The Ukrainian rail freight market is under Government control. The Government-held company, Ukrzaliznytsia (UZ), owns the rail
infrastructure and provides services. Tariff rates are not published. UZ uses the former Soviet Union’s railway-tariff-setting model.
Ukraine Grain Transportation
In August 2020, UZ lowered the rent for grain hoppers from $41 per day (without VAT) to $23 per day (without
VAT) in October 2020 (CFTS). From 2019 to 2020, truck’s market share rose from 26 percent to nearly 28
percent, mostly at the expense of barge shipments (which fell 2 percent) and a slight drop in rail shipments
(Ukrzaliznitsya, Ukrainian Sea Ports Authorities, and CFTS). In 2020, lower transportation costs and higher
farm prices led to lower landed costs for Ukrainian wheat and corn to Alexandria, Egypt, Ciwandan/Cigading,
Indonesia, and Shanghai, China.3 As a share of total landed costs, the transportation costs decreased 30-33
percent for the route from Central Ukraine through the ports of Odesa and decreased 31-35 percent from
Mykolaiv through the same ports (tables 1 and 2).
From Odesa and Mykolaiv to Alexandria, Egypt; Ciwandan/Cigading, Indonesia; and the Southern ports,
China—ocean freight rates declined partly as a result of the pandemic’s widening global impacts. Among these
impacts were restrictions in South Asia discouraging shipyards from scrapping. The reduced demolition of older
ships increased the vessel supply and further softened rates (Grain Transportation Report, January 21, 2021).
Higher Chinese wheat and corn demand, and smaller crops raised grain prices (FAS, Grain: World Markets
and Trade). According to the Food and Agricultural Organization of United Nations (FAO), from 2019 to 2020,
average Black Sea wheat export prices increased nearly 7 percent for mill and 10 percent for feed—to $225.98
per mt for mill and to $218.50 per mt for feed. Also, from 2019 to 2020, Black Sea corn export prices increased
8 percent from $173.05 per mt to $188.58 per mt. In 2020, Ukrainian average wheat farm prices increased 33
percent from $184.26 per mt to $245.85 per mt (table 1). Corn average farm prices increased nearly 42 percent
from $150.68 per mt to $213.22 per mt (table 2).
In 2020, Ukraine exported about 8 mmt of corn to China, 81 percent more than 2019’s total (4 mmt),
accounting for 27 percent of Ukraine’s total exports (28 mmt). The next highest shares of Ukraine’s corn
exports (in declining order) went to the Netherlands, Egypt, Spain, and Turkey. Ukraine exported 3 mmt of
wheat to Egypt, accounting for 17 percent of Ukraine’s total exports (18.1 mmt). The next highest shares of
Ukraine’s wheat exports (in declining order) went to Indonesia, Bangladesh, Pakistan, and Turkey.
Of the Ukrainian grain shipped to major export facilities in 2020, the largest share (64 percent) went by rail,
followed by the truck share (28 percent) and barge share (8 percent) (Ukrzaliznitsya, Ukrainian Sea Ports
Authorities, and CFTS). In contrast, in the United States in 2016, barges shipped 54 percent of total soybean
exports to major export facilities; rail shipped 30 percent; and trucks shipped 16 percent (USDA/AMS). In 2020,
more than 95 percent of Ukrainian grain exports were via the Black Sea ports (Ukrainian Sea Ports Authorities
and CFTS).4
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Ukraine Grain Transportation
Figure 2. Routes1 and wheat, corn, and soybean regions considered in the Ukrainian grain
export transportation indicator2
1
Table defining routes by number is shown on page 12.
2
Regions comprised roughly 100 percent of wheat, corn, and soybean production, 2019.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Figure 3. Routes1 and wheat regions considered in the Ukrainian grain
export transportation indicator2
1
Table defining routes by number is shown on page 12.
2
Regions comprised roughly 100 percent of wheat production, 2019.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Figure 4. Routes1 and corn regions considered in the Ukrainian grain
export transportation indicator2
1
Table defining routes by number is shown on page 12.
2
Regions comprised roughly 100 percent of corn production, 2019.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Figure 5. Routes1 and soybean regions considered in the Ukrainian grain
export transportation indicator2
1
Table defining routes by number is shown on page 12.
2
Regions comprised roughly 100 percent of soybean production, 2019.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 1. Average semiannual costs of transporting Ukrainian wheat from the Black Sea ports to
Egypt and Indonesia, July-December of both 2019 and 2020
2nd half 2nd half % change 2nd half 2nd half % change
2019 2020 2019-2020 2019 2020 2019-2020
To Alexandria, Egypt
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
1
Central Ukraine producing region = Cherkasy, Chernihiv, Kherson, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, and Sumy provinces.
2
Export ports.
3
Rail rates include the cost of delivery to the railway station and the cost of renting a grain hopper. However, rail rates do not include the cost
of moving and positioning rail cars at the elevator and port, railway station fees, security service from loading to discharging port, or freight-
forwarding service. (Any or all of these items could exceed the rail tariff rate.) Rail rates are estimated by using specialized software “TM-Karta” in
accordance with Ukrzaliznytsia (UZ) tariff regulation.
4
Farm price = elevator price − handling costs − farm-to-elevator transportation.
Note: 2nd half = July-December. mt = metric ton.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 2. Average semiannual costs of transporting Ukrainian corn from the Black Sea ports to
Egypt and China, July-December of both 2019 and 2020
2nd half 2nd half % change 2nd half 2nd half % change
2019 2020 2019-2020 2019 2020 2019-2020
To Alexandria, Egypt
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
1
Central Ukraine producing region = Cherkasy, Chernihiv, Kherson, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, and Sumy provinces.
2
Export ports.
3
Rail rates include the cost of delivery to the railway station and the cost of renting a grain hopper. However, rail rates do not include the cost
of moving and positioning rail cars at the elevator and port, railway station fees, security service from loading to discharging port, or freight-
forwarding service. (Any or all of these items could exceed the rail tariff rate.) Rail rates are estimated by using specialized software “TM-Karta” in
accordance with Ukrzaliznytsia (UZ) tariff regulation.
4
Farm price = elevator price − handling costs − farm-to-elevator transportation.
Note: 2nd half = July-December. mt = metric ton.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 3. Quarterly costs of transporting Ukrainian wheat from the Black Sea ports to Egypt and
Indonesia, 2020
1st qtr 2nd qtr. 3rd qtr. 4th qtr. Average 1st qtr 2nd qtr. 3rd qtr. 4th qtr. Average
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020
To Alexandria, Egypt
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
Truck 8.23 6.69 5.35 5.21 6.37 8.23 6.69 5.35 5.21 6.37
Rail3 14.39 13.47 12.66 10.78 12.82 10.80 10.10 9.50 8.11 9.63
Ocean 11.33 8.83 13.08 14.42 11.92 13.08 10.58 15.00 16.17 13.71
Total transportation 33.96 28.99 31.09 30.41 31.11 32.11 27.38 29.86 29.49 29.71
Farm price4 212.06 206.65 220.07 271.64 227.60 212.06 206.65 220.07 271.64 227.60
Landed cost 246.01 235.65 251.16 302.04 258.72 244.17 234.03 249.92 301.12 257.31
Transport % of landed cost 13.8 12.3 12.4 10.1 12.1 13.2 11.7 11.9 9.8 11.6
To Ciwandan/Cigading, Indonesia
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
Truck 8.23 6.69 5.35 5.21 6.37 8.23 6.69 5.35 5.21 6.37
Rail3 14.39 13.47 12.66 10.78 12.82 10.80 10.10 9.50 8.11 9.63
Ocean 30.67 23.50 32.83 31.83 29.71 32.42 25.25 34.75 33.58 31.50
Total transportation 53.29 43.66 50.84 47.83 48.90 51.45 42.05 49.61 46.90 47.50
Farm price4 212.06 206.65 220.07 271.64 227.60 212.06 206.65 220.07 271.64 227.60
Landed cost 265.34 250.32 270.91 319.46 276.51 263.50 248.70 269.67 318.54 275.10
Transport % of landed cost 20.1 17.4 18.8 15.0 17.8 19.5 16.9 18.4 14.7 17.4
1
Central Ukraine producing region = Cherkasy, Chernihiv, Kherson, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, and Sumy provinces.
2
Export ports.
3
Rail rates include the cost of delivery to the railway station and the cost of renting a grain hopper. However, rail rates do not include the cost
of moving and positioning rail cars at the elevator and port, railway station fees, security service from loading to discharging port, or freight-
forwarding service. (Any or all of these items could exceed the rail tariff rate.) Rail rates are estimated by using specialized software “TM-Karta” in
accordance with Ukrzaliznytsia (UZ) tariff regulation.
4
Farm price = elevator price − handling costs − farm-to-elevator transportation.
Note: qtr = quarter. mt = metric ton.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 4. Quarterly costs of transporting Ukrainian corn from the Black Sea ports to Egypt and
China, 2020
1st qtr 2nd qtr. 3rd qtr. 4th qtr. Average 1st qtr 2nd qtr. 3rd qtr. 4th qtr. Average
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020
To Alexandria, Egypt
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
Truck 8.23 6.69 5.35 5.21 6.37 8.23 6.69 5.35 5.21 6.37
Rail3 14.39 13.47 12.66 10.78 12.82 10.80 10.10 9.50 8.11 9.63
Ocean 11.33 8.83 13.08 14.42 11.92 13.08 10.58 15.00 16.17 13.71
Total transportation 33.96 28.99 31.09 30.41 31.11 32.11 27.38 29.86 29.49 29.71
Farm price4 175.45 172.97 183.58 242.86 193.72 175.45 172.97 183.58 242.86 193.72
Landed cost 209.41 201.96 214.67 273.27 224.83 207.57 200.35 213.44 272.35 223.43
Transport % of landed cost 16.2 14.4 14.5 11.1 14.0 15.5 13.7 14.0 10.8 13.5
To Shanghai, China
Central Ukraine1 - Odesa2 Central Ukraine1 - Mykolaiv2
—US$/mt— —US$/mt—
Truck 8.23 6.69 5.35 5.21 6.37 8.23 6.69 5.35 5.21 6.37
Rail3 14.39 13.47 12.66 10.78 12.82 10.80 10.10 9.50 8.11 9.63
Ocean 29.17 24.83 31.50 31.50 29.25 31.92 27.58 34.25 34.25 32.00
Total transportation 51.79 44.99 49.51 47.49 48.45 50.95 44.38 49.11 47.57 48.00
Farm price4 175.45 172.97 183.58 242.86 193.72 175.45 172.97 183.58 242.86 193.72
Landed cost 227.24 217.96 233.09 290.36 242.16 226.40 217.35 232.69 290.43 241.72
Transport % of landed cost 22.8 20.6 21.2 16.4 20.3 22.5 20.4 21.1 16.4 20.1
1
Central Ukraine producing region = Cherkasy, Chernihiv, Kherson, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, and Sumy provinces.
2
Export ports.
3
Rail rates include the cost of delivery to the railway station and the cost of renting a grain hopper. However, rail rates do not include the cost
of moving and positioning rail cars at the elevator and port, railway station fees, security service from loading to discharging port, or freight-
forwarding service. (Any or all of these items could exceed the rail tariff rate.) Rail rates are estimated by using specialized software “TM-Karta” in
accordance with Ukrzaliznytsia (UZ) tariff regulation.
4
Farm price = elevator price − handling costs − farm-to-elevator transportation.
Note: qtr = quarter. mt = metric ton.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 5. Quarterly rail rates for selected Ukrainian grain and soybean
export transportation routes, 2020
Freight price (US$/mt/100 miles)3
Route Origin Distance Share
Destination 1st 2nd 3rd 4th
# (reference city)1 (miles) (%)2 Avg
qtr qtr qtr qtr
Western Ukraine
1 Mykolaiv 501 3.94 3.68 3.46 2.95 3.51
(Khmelnitskii, station Starokonstantinov1)
29.7
Western Ukraine
2 Odesa 343 4.19 3.93 3.70 3.16 3.75
(Khmelnitskii, station Starokonstantinov1)
Eastern Ukraine
3 Mykolaiv 340 4.23 3.96 3.72 3.17 3.77
(Kharkiv, station Lihachevo)
18.8
Eastern Ukraine
4 Odesa 521 3.81 3.56 3.41 3.01 3.45
(Kharkiv, station Lihachevo)
Central Ukraine
5 Mykolaiv 240 4.50 4.21 3.96 3.38 4.01
(Cherkasy, station Zolotonosha1)
51.5
Central Ukraine
6 Odesa 341 4.22 3.95 3.71 3.16 3.76
(Cherkasy, station Zolotonosha1)
1
Although each origin region comprises several cities, the major station at the center of each region is considered as a reference to establish the
freight price. Western Ukraine producing region = Chernivtsi, Ivano-Frankivsk, Khmelnitskii, Lviv, Rivne, Ternopil, Vinnytsia, Volyn, Zakarpattia,
and Zhytomyr provinces. Eastern Ukraine producing region = Dnipropetrovsk, Donetsk, Kharkiv, Luhansk, and Zaporizhia provinces. Central
Ukraine producing region = Cherkasy, Chernihiv, Kherson, Kirovohrad, Kyiv, Mykolaiv, Odesa, Poltava, and Sumy provinces.
2
Share is measured as a percentage of total production and illustrates the production in the region.
3
Rail rates include the cost of delivery to the railway station and the cost of renting a grain hopper. However, rail rates do not include the cost
of moving and positioning rail cars at the elevator and port, railway station fees, security service from loading to discharging port, or freight-
forwarding service. (Any or all of these items could exceed the rail tariff rate.) Rail rates are estimated by using specialized software “TM-Karta” in
accordance with Ukrzaliznytsia (UZ) tariff regulation.
Average monthly exchange rate from the National Bank of Ukraine was used to convert Ukrainian Hryvnia to U.S. dollars.
Note: qtr = quarter. mt = metric ton. Avg = average.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 6. Monthly Ukrainian grain and oilseeds export truck transportation cost index
Note: Truck data collected from Zernovoz and JIT+, Kiev, Ukraine.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Table 7. Quarterly ocean freight rates for shipping grain and soybeans from selected
Ukrainian ports (US$/metric ton)
1st qtr 2nd qtr 3rd qtr 4th qtr
Cargo Port Destination
2019 2019 2019 2019
Wheat Mykolaiv Alexandria, Egypt1 --na-- --na-- 16.33 15.83
Wheat Mykolaiv Ciwandan/Cigading, Indonesia2 --na-- --na-- 39.92 35.58
Wheat Odesa Alexandria, Egypt1 --na-- --na-- 14.58 14.08
Wheat Odesa Ciwandan/Cigading, Indonesia2 --na-- --na-- 38.17 33.83
Corn Mykolaiv Alexandria, Egypt1 --na-- --na-- 16.33 15.83
Corn Mykolaiv Southern ports, China2 --na-- --na-- 38.08 36.25
Corn Odesa Alexandria, Egypt1 --na-- --na-- 14.58 14.08
Corn Odesa Southern ports, China3 --na-- --na-- 35.33 33.50
Soybeans Mykolaiv Southern ports, China3 --na-- --na-- 37.08 35.25
Soybeans Odesa Southern ports, China3 --na-- --na-- 35.33 33.50
1st qtr 2nd qtr 3rd qtr 4th qtr
Cargo Port Destination
2020 2020 2020 2020
Wheat Mykolaiv Alexandria, Egypt1 13.08 10.58 15.00 16.17
Wheat Mykolaiv Ciwandan/Cigading, Indonesia2 32.42 25.25 34.75 33.58
Wheat Odesa Alexandria, Egypt 1
11.33 8.83 13.08 14.42
Wheat Odesa Ciwandan/Cigading, Indonesia2 30.67 23.50 32.83 31.83
Corn Mykolaiv Alexandria, Egypt 1
13.08 10.58 15.00 16.17
Corn Mykolaiv Southern ports, China2 31.92 27.58 34.25 34.25
Corn Odesa Alexandria, Egypt 1
11.33 8.83 13.08 14.42
Corn Odesa Southern ports, China3 29.17 24.83 31.50 31.50
Soybeans Mykolaiv Southern ports, China 3
30.92 26.58 33.25 33.25
Soybeans Odesa Southern ports, China3 29.17 24.83 31.50 31.50
1
Vessel size = 25,000-30,000 metric ton.
2
Vessel size = 50,000-55,000 metric ton.
3
Vessel size = 60,000-70,000 metric ton.
Note: China’s main southern ports include Shanghai, Ningbo, Shenzhen, and Guangdong. na = not available.
Source: Centre for Transport Strategies (CFTS) Kyiv, Ukraine, and USDA, Agricultural Marketing Service.
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Ukraine Grain Transportation
Acknowledgments:
For data, regional information, and maps of Ukraine, the author would like to thank the Centre for Transport
Strategies in Kyiv, Ukraine. The author is, also, grateful for comments and critiques by USDA’s Office of the
Chief Economist, USDA’s Foreign Agricultural Service in Washington, DC, and the Office of Agricultural Affairs in
Kiev, Ukraine. Thanks, also, to USDA, Agricultural Marketing Service employees Maria Williams, editor, Kranti
Mulik, economist, and Jessica Ladd, graphic designer.
Contact Information:
Delmy L. Salin Jessica Ladd
Senior Economist, Project Manager Graphic Analyst
[email protected] [email protected]
202.720.0833 202.720.6494
Preferred Citation:
Delmy Salin. April 2021. Ukraine Grain Transportation, U.S. Department of Agriculture, Agricultural Marketing
Service. Web <http://dx.doi.org/10.9752/TS260.04-2021>
Photo Credit: USDA
USDA is an equal opportunity provider, employer, and lender.
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