The national postal operator Ukrposhta has announced that from October 1, it will reduce rates for sending small PRIME parcels (up to 2 kg) to the US by $1.5-2, and they will cost from 260 UAH, which is less than before, according to the company’s CEO Ihor Smelyansky.
“To support Ukrainian exporters during the busiest pre-holiday sales season in the US, which accounts for more than 25% of annual sales, Ukrposhta… Starting October 1, rates for small PRIME packages will start at 260 hryvnia, which is $1.5-2 less than before,” the company’s CEO Ihor Smelyansky wrote on Facebook on Tuesday.
He specified that this refers to delivery within seven days to more than 15,000 branches throughout the United States.
According to him, in partnership with DHL, Nordi, and Lufthansa, a logistics chain has been built, including parcel processing in Ukraine within 24 hours, delivery to London or Frankfurt within 34-40 hours, then the parcel goes to recipients in the US: New York, Miami, Chicago, Los Angeles.
According to Smiliansky, the introduction of US customs duties on postal items worth up to $800, with a 10% duty for Ukraine compared to 15% for the EU, 25% for Moldova, and 45% for Switzerland, gives Ukrainian small businesses the opportunity to maintain their positions and even increase their volumes, especially given that many countries have not yet resumed deliveries to the US.
Smiliansky added that Ukrposhta has a share of over 50% in the international delivery market.
According to information on the company’s website, the current cost of sending a small PRIME package (no side exceeding 60 cm, and the sum of all measurements not exceeding 90 cm) weighing 100 g to the US is UAH 321.64, and 2 kg – UAH 1,135.6.
Transportation costs for importing goods have quadrupled compared to pre-war levels, and transport delays at the border average 20 days, said Dmytro Derevytskyi, chairman of the board of directors of the national marketplace network Allo Dmytro Derevytskyi, chairman of the board of directors of the national market chain Allo.
“In the pre-war period, a truck from Warsaw to Lviv cost about EUR1.3 thousand, then in 2022 – EUR2-2.5 thousand. Now the freight is about EUR4.8 thousand and changes daily, somewhere plus or minus EUR300,” he explained at a discussion organized by Deloitte in Kyiv on Wednesday.
He also noted that the search for alternative options (to the Polish border) is not optimal. According to him, the company has redirected its trucks to Slovakia, Hungary and Romania amid the blockade of the Polish border, but the checkpoints there do not have the capacity to quickly process the increased flow of freight traffic. Waiting times at the border from Romania, Hungary, and Slovakia range from 3 to 6 days, and taking into account the queue at the Ukrainian border for exit (14 days), trucks stand in line for about 20 days.
“The cost of funds in Ukraine is very high. Imagine which business will be able to pay for this downtime for such a long time,” Derevytsky said and called on business associations to lobby for at least a reduction in transport downtime on the Ukrainian border.
Allo LLC was established in 1998. The group’s network includes showrooms under the Allo Mah and Allo brands, Mi stores and outlets under the brands of telecom operators.
According to the Opendatabot resource, the participants of Allo LLC are PE Dniproinvest 2016 (95.19%), Dmytro Derevytskyi (3.6%), and Maksym Raskin (1.21%). Derevytskyi is listed as the ultimate beneficiary.
Ukrposhta from July 1 raises the cost of standard delivery within Ukraine by an average of 14% and within the region by 13%, the company’s press service said on Thursday.
“The tariff revision is caused, first of all, by an increase in logistics costs for delivery. However, even after the revision of the cost, Ukrposhta’s tariffs remain lower compared to competitors,” the company said.
According to the national postal operator, sending a parcel weighing up to 1 kg within Ukraine, which used to cost UAH 31, will cost UAH 35 after viewing the tariffs, and delivery of a parcel weighing up to 15 kg will cost UAH 75, compared to UAH 65 before viewing the tariffs.
The express delivery service will rise in price for shipment within the region by an average of 14%, within Ukraine – by 16%. If earlier a parcel up to 1 kg across Ukraine cost UAH 39, then from July 1 it will cost UAH 45.
The cost of sending documents will increase by 14%. The cost of international shipments will remain the same.
The relevant decision to revise tariffs was approved by the National Commission for Communications Regulation back in November 2021.
The Meest international postal and logistics group with Ukrainian roots, through its subsidiary Meest China, has resumed the purchase and delivery of goods from China to Ukraine.
According to the company’s announcement on Wednesday, delivery to Ukraine of both postal items and commercial cargo is available.
Earlier, Meest resumed international delivery of parcels to the countries of the European Union: Bulgaria, Estonia, Latvia, Lithuania, Germany, Poland, Romania, Slovakia, the Czech Republic and Hungary.
At the same time, the company said on its website that due to the war on the territory of Ukraine [which Russia unleashed with its invasion on February 24] and the introduction of martial law in the country, the delivery time for international shipments to European countries may be extended and will depend on further development situations.
Ukrposhta resumed delivery from the largest marketplaces and online stores: OLX, prom.ua, Rozetka, eva.ua, as well as online clothing stores, in particular, children’s clothing, consumer goods, children’s toys, goods for the home, etc., the company’s press service said on Friday.
“Now many Ukrainians are faced with the fact that it has become a problem to buy ordinary things in a store: due to logistical restrictions, when the store simply cannot deliver products on time, or due to a sharply growing demand due to internal migration, some groups of goods have temporary shortage. Ordering goods on the marketplace can partially solve the problem. Therefore, we are pleased to announce that Ukrposhta has resumed the delivery of online orders. Gradually, we will resume delivery from all sites that we worked with before the war, because we understand how important it is for our customers. In addition, the resumption of delivery from marketplaces will allow Ukrainian entrepreneurs to return to work, earn money and strengthen the economy,” Ukrposhta Deputy Director General for Business Development Olena Stepina was quoted as saying.
It is said that as of March 11, some 4,783 branches of Ukrposhta are operating. In addition, mobile departments leave for routes where it is safe.
Capacity utilization of Ukraine’s transit corridor on Friday remains at the same high level, in line with the long-term contract volumes of 40 billion cubic meters per year or 109 million cubic meters per day.
European buyers have increased nominations for Gazprom’s gas after prices soared due to the imposition of sanctions on Russia. Gas prices at the TTF hub were $1,383 per thousand cubic meters on Friday morning.
“Gazprom is supplying Russian gas for transit via Ukraine as scheduled in accordance with the requests of European consumers – 109.5 mcm on March 11,” the company’s official spokesperson Sergey Kupriyanov told reporters.
As confirmed by data from the Ukrainian GTS Operator, the nomination for March 11 is 109.4 mcm, while that for March 10 was also 109.4 mcm.
