Growing Competition: How Fertilizer Supply Logistics to Ukraine Has Changed
New Geography of Supplies
According to the State Customs Service, in 2024, mineral fertilizer imports to Ukraine reached 2.7 million tons, which is 23% more compared to the previous year. The majority of imports – 1.4 million tons – consists of nitrogen fertilizers, which are critically important for Ukrainian farmers.
After completely stopping imports from Russia and Belarus, the Ukrainian market reoriented to supplies from:
- Nearby countries: Serbia, Turkey, Georgia
- Medium-distance countries: Azerbaijan, Turkmenistan, Egypt, Tunisia
- Long-distance countries: South Korea, China, Saudi Arabia
Transformation of Logistics Routes
The blockade of Black Sea ports at the beginning of the war forced importers to develop alternative supply routes:
- Land corridors:
- Development of new transshipment terminals on the western border
- Creation of dry ports (for example, Mostyska)
- Development of warehouse infrastructure
- Danube direction:
- Adaptation to smaller vessel parties (up to 6,000 tons)
- Modernization of port infrastructure
- Seaports:
- Resumption of Greater Odesa ports operations
- Increase in vessel batch volumes
- Conclusion of long-term supply contracts
Infrastructure Investments
Market participants are actively investing in logistics infrastructure development:
- Global Ocean Link (GOL) built two warehouses at DP World TIS Pivdennyi terminal
- TEUS installed new packaging equipment in Chornomorsk port
- “Kaspit Trade” is expanding storage capacity and investing in its own fleet
Competitive Environment
The market is characterized by:
- Growth in the number of new players
- Increased price competition
- Emergence of new business models
- Development of long-term partnerships
Development Prospects
Further development of the mineral fertilizer supply market in Ukraine will depend on:
- Stability of seaport operations
- Investments in logistics infrastructure
- Diversification of supply sources
- Optimization of logistics costs
An important factor is also the synergy with grain exports, where fertilizer imports can help optimize logistics costs through return vessel loading.
