Business news from Ukraine

Business news from Ukraine

Ukrainian ports handled 8 mln tons of cargo in October, 85% through ‘sea corridor’

Ukraine’s ports handled 8 million tons of cargo in October, of which 6.8 million tons, or 85%, were handled through the ‘sea corridor’, State Enterprise (SE) Ukrainian Sea Ports Authority (USPA) reported on Tuesday.
The port’s performance in October is 11.5% higher than in September, when 7.178 million tons of cargo were handled, said Timur Tkachenko, Deputy Minister of Community Development, Territories and Infrastructure.
More than half of the cargo handled by ports in October was agricultural. They accounted for 5 million tons, which is almost 3.3 times more than in the same period last year, the USPA said.
Grain cargo accounted for more than half of the volume of cargo handled through the sea corridor in October – 4.5 million tons out of 6.8 million tons. The volume of ore cargo transshipment reached 1.4 million tons, which is almost twice as much as in October 2023.
Earlier it was reported that in January-October 2024, cargo handling increased by 78.1% compared to the same period in 2023 – up to 82.1 million tons from 46.1 million tons.

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Ukrainian ports increased cargo handling by 1.8 times in January-September

In January-September 2024, Ukrainian ports increased cargo transshipment by 1.8 times to 74 million tons, the state-owned Ukrainian Sea Ports Authority (USPA) reported.

“According to the operational data of USPA, from January to September 2024, Ukrainian seaports handled 74 million tons of cargo. This is a significant increase compared to the same period last year, when the volume amounted to 41.1 million tons,” the USPA said in a Facebook post on Thursday.

It is indicated that a significant part of the cargo turnover – 46.3 million tons – is agricultural products. This emphasizes its importance for the national economy and exports, the USPA said. In September, the volume of cargo handled in ports increased to 7 million tons, which is twice as much as in September 2023, when 3.4 million tons were handled, the USPA said. Of this volume, 4.1 million tons were agricultural products supplied to international markets.

Earlier it was reported that the cargo turnover of Ukrainian ports in August this year also amounted to 7 million tons. The leaders of cargo turnover are grain and ore cargo – 4 million tons and 1.2 million tons, respectively. At the same time, cargo turnover through the Ukrainian sea corridor in August amounted to 5.9 million tons, of which 3.6 million tons were products of Ukrainian farmers.

In total, in January-August 2024, Ukrainian ports handled almost 67 million tons of cargo, compared to 37.7 million tons in the same period a year earlier.

 

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There were about 40 companies operating in Odessa ports, which exported agricultural products without paying taxes – investigation

The head of the Odessa regional military administration Oleg Kiper in August 2023 by his order strengthened customs control in the region when exporting agricultural products for export, at the same time on the market of export of agricultural products appeared about 40 companies with signs of fictitiousness, reported hromadske in the investigation “Grain Baron”.
The publication noted that through the ports of Odessa in 2023 passed 85 percent of the country’s agro-exports.
When analyzing the data of the Ukrainian customs, access to which is provided by the international service ImportGenius, journalists found 40 companies with signs of fictitiousness, which entered the agro export market after the Odessa OSA established “manual control” over it.
These companies started exporting grain after August 2023. They have never engaged in exports before, were founded or changed owners in 2023, are not part of well-known agroholdings and do not own land.
“The largest by export volume of these firms has the same phone number as another 139 legal entities. And in second place is a company whose founder is probably a psychologist from Uzbekistan, for whom 20 legal entities have been registered in Ukraine over the past two years,” the investigation said.
“Suspicious” companies for the last quarter of 2023 exported through the ports of the Odessa region about 800 thousand tons of agricultural products worth about $ 150 million, or 6 billion UAH, says the publication and recalls that the head of the Odessa Regional State Administration explained the establishment of manual control by the need to fight against one-day companies and so-called “black exports”.
Such one-day companies export grain and do not return foreign currency proceeds to the country, do not pay taxes, have a fake director and do not have an office. After several transactions with a budget of several million dollars, the company disappears.
The chairman of the All-Ukrainian Agrarian Union “Agrarnaya Rada” Dmytro Kohan drew attention to the fact that any manual control has increased risks of corruption.
The Odessa regional military administration refused to comment on the facts revealed by journalists.

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Chornomorsk port resumes exporting agricultural products

Shipment of agricultural products from the Chornomorsk seaport (Odesa region), whose infrastructure was severely damaged by a Russian missile attack last week, is gradually resuming, Spike Brokers brokerage company reported in a telegram channel.

The brokers noted that in 2023, the share of the Chornomorsk port in the structure of export shipments by water transport was 36%, while the Danube ports accounted for 32%, the Odesa port – 17%, and the Pivdenny port – 15%.

“Over the past week, freight rates for the transportation of corn by ‘coaster’ to the east coast of Italy decreased by $3, to Spain and Israel – by $2. The freight for the transportation of grain by panamaxes from the deep-water ports of Odesa to China and Vietnam decreased by $4,” the experts noted.

As of April 22, the rates for transportation from the port of Chornomorsk to Italy (east coast) amounted to $29-30 (30-35 thousand tons), Spain (Mediterranean) – $30-32 (30-35 thousand tons), Vietnam – $52-54 (60-65 thousand tons), China – $54-56 (60-65 thousand tons).

At the same time, the market rates for transportation by freight from the port of Izmail to the port of Constanta (Romania) as of the specified date are EUR18-22 (4.5-5 thousand tons), to the ports of the Mediterranean coast of Spain – $35-37 (30-35 thousand tons). The rates of transportation from the port of Reni to the ports of Israel range from $33-35 (30-35 thsd tonnes), Spike Brokers stated.

According to a grain market source, who wished to remain anonymous, such a restriction could lead to temporary disruptions in the delivery of products to the terminals of Kernel, Risoil and Viterra groups. In addition, the shutdown of grain terminals could lead to a reduction in April exports of Ukrainian grain via the Black Sea grain corridor to 5 million tons, compared to the expected 8 million tons.

As reported, on April 10, the Russian occupiers damaged railroad sidings to a number of grain terminals located in the port of Chornomorsk during the morning shelling of Odesa region. This resulted in temporary disruptions in the delivery of products to the terminals of Kernel, Risoil and Viterra.

“On the day of the shelling, Ukrzaliznytsia introduced a convention on freight transportation that was to be in effect until April 13, and then extended twice – first until April 17, then until April 22, after which it was lifted.

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“Ukrzaliznytsia” increased volume of export transportation to ports by 2.4 times

In January-March 2024, Ukrzaliznytsia JSC (UZ) increased export transportation to ports by 2.4 times compared to the same period in 2023 – up to 15.347 million tons, while reducing the volume of transportation through land crossings in export traffic by 11.9% to 8.041 million tons, according to an analytical note of the company following the meeting of the Exporters’ Office.

In total, Ukrzaliznytsia transported 44.69 million tons of cargo in the first quarter of this year, which is 28.7% more than in the first quarter of 2023. Export transportation accounted for 52.3%, or 23.9 million tons, up 50.6% year-on-year.

In January-March, the company’s export transportation volume of iron and manganese ore increased 2.4 times year-on-year to 9.89 million tons, grain cargo – by 18.4% to 9.9 million tons, and ferrous metals – by 13% to 1.19 million tons.

In addition, the volume of vegetable oil transportation in export traffic in January-March increased by 7.5% to 424.2 thousand tons, construction materials – by 1.8 times to 545 thousand tons, cement – by 49.2% to 277.8 thousand tons.

Earlier, Oleksandr Kubrakov, Vice Prime Minister for the Reconstruction of Ukraine, Minister of Community Development, Territories and Infrastructure (Ministry of Reconstruction), said that in March 2024, Ukrzaliznytsia transported 16 million tons of cargo in all directions, which is a third more than in March 2023 and 10% more than the record figures for February 2024, when the volume of traffic reached 14.5 million tons.

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Danube Cluster ports have doubled their cargo turnover

In 2023, the ports of the Danube Cluster almost doubled their cargo turnover to 32 million tons.

As the Ukrainian Sea Ports Authority (USPA) reported on Facebook on Wednesday, 14,031 thousand vessels were received and dispatched during this period,

Izmail port received/dispatched 9,324 thousand vessels, handling 20.26 million tons of cargo. The port of Reni handled 3,858 thousand vessels and 10.07 million tons of cargo, and the port of Ust-Dunaisk handled 849 vessels and 1.68 million tons of cargo.

Last year, the volume of grain transshipment in the ports of the Danube cluster almost doubled to 20 million tons (10.3 million tons in 2022). Also, the volume of transshipment of liquid bulk cargo increased significantly – 5.3 million tons (2.3 million tons), ferrous metals – 1.7 million tons (0.8 million tons), construction materials – 0.5 million tons (0.3 million tons), containers – 67,667 thousand TEU (9,321 thousand TEU). The volume of ore transshipment slightly decreased to 1.9 million tons (2.1 million tons).

Earlier it was reported that the cargo turnover of the seaports of the Danube region in January-November 2023 reached 29.4 million tons, which is more than twice the figure for the same period in 2022 (14.5 million tons).

The volume of transshipment in the ports of the Danube cluster in 2022 amounted to 16.49 million tons: 8.89 million tons at the port of Izmail, 6.82 million tons at the port of Reni and 0.785 thousand tons at the port of Ust-Dunaisk.

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