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Logistics Ratings Missing in Ukraine: How a Client Can Distinguish “Cheap” from “Reliable”

Posted on 01.04.2026 by Piskun Yuliia

Pricing issues in the logistics industry are extremely relevant today. A particularly significant aspect is that an emphasis on “cheap at the start” typically results in a much higher cost of error later. This can manifest as breaches of agreed deadlines, downtime, fines, or loss of clients. That is why Ukraine needs a reliability rating for logistics companies, rather than a price ranking.

What the Market Watches vs. What it Overlooks

One of the key problems facing the modern logistics services market is that the focus is centered on the rate, while a whole range of other factors remains overlooked, namely:

Risk profile;
Service discipline;
Readiness for force majeure;
Transparency.

Therefore, a selective focus on the price factor becomes the fundamental error in selection, leading to partnerships that ultimately disappoint.

Current Insights into the Logistics Sector

To address this, let’s highlight three key metrics that are most significant for assessing a logistics partner’s reliability:

Speed and quality of response to force majeure;
Transparency and process control;
Company experience and longevity, which serves as evidence of reliability.

In my opinion, it is equally vital to consider scenarios where a low freight rate hides the exclusion of THC (Terminal Handling Charges), local port fees, storage, or free time. Furthermore, vehicle downtime often occurs, fuel surcharges appear, and there are re-issuances of bills of lading or additional certificates that were supposedly agreed upon in advance.

For example: A client saves money at the start but loses both time and money later. Consider a customs clearance case where a competitor offered a 30% cheaper rate for filing a Customs Declaration. However, the “cheapest” broker submitted an incorrect commodity code, forcing the importer to pay an additional 1.5% in duties—amounting to approximately $10,000.

It is also crucial to watch for “red flags” that indicate reliability is unlikely. This includes “guarantees” of transit time and cargo safety. While these factors can be managed with care, they cannot be legally guaranteed.

5 Significant Criteria to Consider When Choosing a Logistics Provider

When asked about selection criteria, I believe you should focus on the following:

KPIs for maintaining ETD conditions: % of shipments without disruptions (no rollovers, no route changes due to the forwarder’s fault, no critical delays);
KPIs for maintaining quoted costs: % of shipments without additional unplanned expenses;
Volume metrics: Not the primary factor, but important to show how the company performs under load;
Annual volume: (TEU / MT / trucks / charters);
Client retention rate: (Year-over-year).

Additionally, a global agent network should be added to this list.

Additional Criteria for a Reliable Carrier

Beyond the aforementioned points, you should also consider:

The carrier’s experience in their specific niche;
Transit times;
Availability of their own fleet;
Recommendations from B2B clients;
Pricing transparency and a clear breakdown of all services included in the tariff;
Level of customer service, including 24/7 support, convenient communication channels, and cargo status reporting;
Ability to offer alternative routes in case of force majeure;
Capability to provide necessary shipping conditions for specialized cargo (e.g., hazardous materials, etc.).

If you take all these factors into account when choosing a freight forwarder, it will significantly increase the chances of a successful partnership.

Logistics Challenges, Risks, and Trends in 2026

Posted on 20.03.2026 by Piskun Yuliia

In the challenging conditions of wartime, Ukrainian logistics continues to face a wide range of risks and challenges. These are constantly evolving, as the field is highly dynamic and influenced by both domestic processes and international factors.

CEO Pavlo Lynnyk and Commercial Director Volodymyr Huz discuss the current context for logistics companies.

What logistics solutions do you consider most effective for mitigating risks in 2026?

Volodymyr Huz: In 2026, the key factor for resilience is diversification and supply chain controllability, rather than relying on a single “ideal” route. When distributing flows, one must consider local risks perceived by importers. Insurance and tariffs are also vital issues. It is particularly worth noting that insurance services have surged in price and continue to get more expensive—rising from 1% to 3.5%.

Poland remains a key hub. We can assume that in March, this traffic will continue to be oversaturated. However, it remains effective as it allows for work with various transport modes—container ships, trucks, and rail. By the way, rail can reach the final destination directly (which is cheaper but not very fast) or, for example, go to the Mostyska border crossing, from where the cargo can be picked up by truck.

One should not forget other European alternatives. Constanța hasn’t gone anywhere and has become more active as of today. It is a sort of European “Plan B.” Similarly, Rijeka remains a solid hub for rail service via Budapest, which is a good option for certain importers.

If we are talking about connections with Northern and Central Europe, the USA, Canada, and South America, then Germany and the Benelux countries can be considered alternatives to Poland. This is relevant for high-margin goods where one wants to avoid the risks in Poland, such as the port closures seen in early January.

Pavlo Lynnyk: From our experience, the most effective solutions are: multimodal routes with the ability to quickly switch between ports, countries, and transport modes; the regionalization of logistics and use of dry ports, border hubs, and temporary storage warehouses closer to the client; and combining shipping lines with alternative services to avoid dependence on a single global player.

Effectively, in 2026, the winner is not the one who is cheaper, but the one who is more stable and adapts faster.

What changes in carrier behavior are you already recording at the beginning of 2026, and what do you expect in the next 6–12 months? Are you seeing a return of the fleet to traditional routes, or is the priority still on alternative paths?

Volodymyr Huz: Regarding road carriers, we are currently observing an increase in tariffs. This applies to truck and container transport both within Ukraine and in international logistics. However, it is important to understand the market context: prices are simply rising to market levels and moving away from the dumping that characterized last year. Therefore, current price levels are market-optimal rather than inflated.

An identical trend is observed in the break-bulk fleet. Small dry-cargo vessels (3,000–5,000 tons) have nearly doubled their freight costs in the Black Sea. For example, six months ago, import tariffs to Ukraine were $20–$25 per ton; now they are around $40 per ton.

Conversely, container prices to Ukraine continue to decrease. Precise pricing depends on the factor of traffic returning to the Suez Canal. As of now, CMA has announced they are not returning, while MAERSK has returned with two services.

Pavlo Lynnyk: Overall, carriers are becoming more pragmatic. they are conducting fewer experiments and focusing more on profitable and predictable routes. Transport prices are also rising. The winner is the one who provided work early on, but no one intends to hold back tariffs or prices while demand exists.

Thus, alternative routes (via Poland, the Baltics, Southern Europe, and multimodal corridors) remain a priority, especially for Eastern Europe and Ukraine. At the same time, carriers are reducing their risk tolerance. They are reviewing terms more frequently, introducing surcharges, and shortening free time.

What do you think will be the main challenges in your industry throughout 2026?

Volodymyr Huz: It is important to mention the underloaded export format in Ukraine regarding containers. Imports heavily prevail over exports. There are currently no signs that Ukrainian exports will begin to be accounted for in full-scale volumes. Therefore, I predict this trend will persist for the near future, and possibly for all of 2026.

Pavlo Lynnyk: Major trends will also include the unpredictability of geopolitics and regulatory decisions, which can instantly change routes, rates, and infrastructure availability; a deficit of quality infrastructure on alternative corridors, as warehouses, terminals, and rail hubs do not always keep up with demand; and pressure on margins, as clients expect “peacetime” service levels despite increased costs and risks.

Additionally, a human resources challenge is emerging. There is a growing need not just for logisticians, but for specialists who think in terms of scenarios, risks, and finance.

Adapting to all these challenges is a necessity for a modern logistics company. You either adjust to them or leave the market—these are today’s realities.

Is there air cargo in Ukraine?

Posted on 20.03.202620.03.2026 by Piskun Yuliia

Since February 24, 2022, Ukrainian airspace has been closed to civil aviation; however, this does not mean that air logistics has disappeared. It has simply moved geographically beyond the country’s borders. Let’s take a closer look at how this process unfolds.

Situation Assessment 2022–2025: Is there air cargo in Ukraine?

Let’s briefly review the chronology.

2022: The day civil aviation stopped

With the start of the full-scale Russian invasion, flights ceased. The closure of airspace for civil aviation and cargo became a breaking point. Adaptation to new, complex conditions and the search for alternatives began.

2023: The market restructured with the involvement of neighbors

In 2023, air logistics adapted to the specifics of martial law. Now, cargo and passengers reach hubs in Poland, Slovakia, etc., by road or rail—and fly or ship as air cargo from there. This created a kind of “new normal,” where the phrase “air from Ukraine” became firmly associated with “air via neighbors.” Naturally, this term implies additional costs, time, and the risks of the inland leg.

2024: The return of the reopening theme—but in the language of risk

Up to a certain point, when it seemed to society that the war might end sooner, one could hear the question: “When will the sky open?” The discourse of 2024–2025 has changed.

Public signals about partial restoration scenarios appear periodically. For example, this could involve a single airport, limited routes, and additional security protocols. However, the key issue hinges on the risks of strikes, air defense operations, insurance, and liability.

2025: Insurance as the market’s “on/off switch”

Previously, there were even statements about a potential launch of flights in early 2025, but even then, it was presented as an “if we’re lucky” scenario contingent on insurance solutions. As of today, it is finally clear: airlines will not enter without a proper insurance solution.

For instance, Crispin Ellison, a senior partner at the insurance company Marsh McLennan, stated during the Kyiv International Economic Forum in 2024 that flights could resume by the end of January 2025 at one of Ukraine’s airports, specifically “Lviv” or “Boryspil.”

We now see how much unfounded optimism was present in such interpretations of possible future events.

Infrastructure: Airports must be restored even before the first flight

A separate layer of the 2022–2025 reality is airport infrastructure. It has been officially stated that a significant portion of civil airports sustained damage. This means that “opening” does not equate to “flying tomorrow.” To resume flights in Ukraine, inspections, restoration of systems, personnel, procedures, and certifications are required.

In terms of figures, as early as 2024, Prime Minister of Ukraine Denys Shmyhal stated that 15 civil airports had been damaged since the Russian invasion. Even then, the official noted that the military situation and security issues were key to the decision to open airports.

That is why airports in Ukraine must be restored even before the first flight. This is what a sober assessment looks like, devoid of unreasonable optimism in futuristic forecasts. The reality of the previous years has shown that wishful thinking leads to disappointment when desires clash with reality; dreams of returning to a pre-war state cannot be built solely on nostalgic expectations but must have a solid foundation.

For whom the aviation sector is critical even in 2022–2025

Despite the difficult situation in air logistics, this sphere remains critically significant for a number of Ukrainian business sectors, including:

International E-commerce and Retail: For businesses specializing in sales via Amazon and Etsy, delivery through airports in Poland, Budapest, Vienna, Prague, and Frankfurt provides the speed necessary to remain competitive globally.
Electronics Manufacturing: Specifically regarding the export of microchips, sensors, and other components. Logistics delays can lead to the shutdown of entire production lines.
Defense Industrial Complex: Air delivery is vital for supplying spare parts for Western equipment, as well as transporting ammunition and drone systems.
Pharmaceuticals and Medicine: This involves specific medications and vaccines supplied from abroad.

These examples do not cover the entire spectrum of industries dependent on air communication, but for them, this format of logistics is especially significant.

Adaptation to changes in air logistics: A specific example

Currently, the actual share of air cargo in GOL’s portfolio is small, accounting for about one percent; however, some significant trends are worth noting:

The growth rate was highest during the 2024–2025 period.
For 2026, a similar recovery pace is expected for this direction (at least 2x–3x).

The most frequent requests include EXW China – Budapest – Kyiv, as well as repackaging services in China or Budapest.

Despite the lack of direct communication, the air market in Ukraine is undergoing rapid development driven by the demands of the e-commerce sector. Although statistics on air transport are unavailable, it is suggested that Ukraine has not lagged far behind neighbors like Hungary and Poland, which saw 35–40% growth respectively in 2024–2025.

2026+ Scenarios

To avoid falling into unfounded expectations, forecasts should be built realistically. Thus, two key scenarios are worth mentioning:

Opening of one airport and operation on limited routes. This is roughly the scenario mentioned above with reference to Crispin Ellison—with the caveat of a 1+ year time shift, as he gave that forecast for early 2025 back in 2024.
Longer airport closure, depending on the dynamics of hostilities. If the sector develops according to this scenario, it will involve the growth of border hubs and an emphasis on multimodality.

Which of these options will be realized in practice depends directly on the specific military situation.

The Bottom Line…

Thus, answering the key question of this review: yes, air transport exists as part of the chain, but not as domestic flight infrastructure. For real changes, the market will wait not for promises, but for published criteria regarding security, insurance, and readiness. Only this will revitalize the aviation sector and ensure a gradual return of its dynamics.

The Suez Canal After the Crisis: What Carriers are Preparing for in 2026

Posted on 20.03.202620.03.2026 by Piskun Yuliia

The Suez Canal, which for decades served as a vital part of the trade route between Asia and Europe, has ceased to be a stable solution. Despite a formal decrease in military activity in the Red Sea, the shipping market has not returned to its pre-crisis operational logic.

In turn, the market is currently experiencing planning uncertainty as carriers enter 2026. USM reports on the challenges facing the industry in 2026 and the advice offered by Ukrainian logistics experts.

Challenges Faced by Carriers Last Year

Last year, the route through the Suez Canal remained problematic for a significant portion of the market. As of May, vessel tonnage in Suez was approximately 70% lower than in 2023. This sustained the practice of bypassing via the Cape of Good Hope for many liner services and part of the tanker segment.

The additional miles quickly translated into a capacity shortage. Vessels are tied up in voyages longer, container turnover is slowing down, and free tonnage in the system vanished without any fleet scrapping. In early July, the market received a reminder that Red Sea risk is measured in more than just miles—insurance costs also spiked. War risk premiums rose from approximately 0.3% to 0.7% of the vessel’s value, with some quotes reaching 1%. For a vessel with an estimated value of $100 million, a 0.7% premium means about $700,000 for a single transit, excluding other surcharges.

This state of affairs lasted until October, when Yemeni militants announced a “truce.” However, the first practical signals of a cautious return of shipping to the region only appeared in December. On December 4, the CEO of Hapag-Lloyd stated that the return would be gradual. He estimated a transition period of 60–90 days to restructure logistics and avoid port congestion caused by a simultaneous pivot of numerous services back to Suez.

By December 18–19, 2025, the container ship Maersk Sebarok passed through the Red Sea and the Bab-el-Mandeb Strait. The company called this an initial transit and did not announce a full return to Suez for its East-West network. Another shipping giant, CMA CGM, announced plans to return to the Suez Canal starting in January (i.e., this year).

Despite the decline in Houthi activity, another marker of instability in Yemen appeared on December 30. The Saudi coalition launched strikes on the port of Mukalla. The Yemen factor remained unpredictable at the end of 2025; thus, the return to Suez appeared managed and phased.

Carrier Sentiments in 2026

Global carriers entered the new year with the same risks and challenges. Although the Red Sea route has not been attacked since September 29, the Suez Canal remained underutilized by 60% even after 100 days without attacks.

BIMCO reported that in the first week of 2026, transits were approximately 60% lower than in the same week of 2023. Since January 2024, when mass diversions around the Cape of Good Hope began, quarterly transit volumes through the canal have remained 51–64% below 2023 levels. Throughout 2025, transits were 57–64% lower than pre-crisis levels, with the largest drop in the container segment (–86% in Q4 compared to 2023). For other segments in Q4 2025, the data is as follows: bulk carriers –55%, crude oil tankers –32%.

The exception is product tankers. Increased freight premiums accelerated their return, so in Q4 2025, their transit was only 19% lower than in 2023 (compared to –45% in 2024).

World carriers have not shown a unified reaction. Maersk announced the resumption of one of its services via the Suez Canal in January. Specifically, a weekly route connecting the Middle East and India with the U.S. East Coast, known as MECL, starts today. It will be the first in the company’s phased return to the Suez route. Maersk also stated that one of its vessels tested the route as the ceasefire in Gaza provided hope for normal shipping, and one vessel also made a voyage through the Suez Canal in December.

In contrast, CMA CGM is scaling back Suez Canal services again—the company is temporarily withdrawing its FAL 1, FAL 3, and MEX services from the Suez route and redirecting them around the Cape of Good Hope. CMA CGM attributed the decision to a “complex and uncertain international context” but provided no further details.

Thus, despite market analysts’ expectations, the “truce” declared by the Houthis in the fall did not automatically return the market to a pre-war state. It appears the route problem will persist in the industry at least through this year, and full recovery may take several years. Returning services to Suez means synchronizing the fleet, crews, port windows, and inland logistics, which will take significant time even in the absence of unpredictable political factors.

This explains why the market saw divergent decisions from lines at the end of the year. For some companies, returning to Suez was an opportunity to release vessels from long voyages faster and increase turnover; for others, the risk remained too high amid a still-unstable security situation. Consequently, instead of a single scenario, a system has formed where different services operate under different logic, even within the same direction.

In these conditions, the main challenge has shifted from choosing the “right” route to managing uncertainty. The entire logistics chain has begun flexible planning, leaving a window for rapid reaction; therefore, issues of diversification, hub selection, and readiness to switch between scenarios have come to the forefront.

How Ukrainian Carriers Should Account for These Issues

Ukrainian logisticians are, of course, monitoring the situation. As Volodymyr Guz, Commercial Director of Global Ocean Link (GOL), told USM, the key focus is now on flexibility and rapid planning.

“We are currently living in a reality where the conditions and terms of the same route can change literally within a week. Therefore, for clients, the key is not to guess which line is right, but to build a chain that can withstand market pivots,” says Volodymyr Guz.

In the near term, GOL management sees that the market continues to respond with falling rates on the Far East – Europe direction. According to the expert, this is about volatility: schedules and conditions will be reviewed constantly rather than once a season. In the short window, the winner will be the one who can first establish a stable service via Suez—before the market accounts for further tariff reductions.

GOL also believes that Ukrainian companies need to diversify their delivery routes.

“For example, regarding sea freight and subsequent delivery to Ukraine, imports through Poland look significantly stable and predictable. The Polish hub provides more options in terms of lines, infrastructure, and inland delivery—this is critical when the maritime portion of the route is ‘floating’,” notes Volodymyr Guz.

At the same time, GOL’s Commercial Director believes there are several steps cargo owners should consider in 2026:

“First—diversify flows: distribute volumes among the top 3 lines so as not to depend on a single carrier or service. Second—place maximum emphasis on the Polish hub as a primary entry/exit point, where it is easier to switch between options and maintain chain control. Third—secure a sufficient pool of inland carriers from Poland in advance and reserve capacity for peak periods,” noted Volodymyr Guz.

According to him, significant congestion is expected at the junction of the 1st and 2nd quarters, and the availability of confirmed inland resources will be the key to meeting deadlines.

“The earlier cargo owners incorporate this into their planning, the fewer surprises there will be regarding deadlines, and the higher the chance to lock in favorable conditions before the next round of market fluctuations,” the expert concludes.

The events surrounding the Suez Canal in recent years demonstrate that global maritime logistics has entered a phase where planning is constantly challenged. Even with a formal decrease in military activity in the Red Sea, the market does not automatically return to familiar models. Line decisions remain fragmented, and the security factor remains variable, which continues to translate into volatility in rates, schedules, and routes.

Against the backdrop of “floating” security in the Red Sea, logistics increasingly operates not as a fixed route; therefore, the ability to quickly transition between these scenarios will determine who in 2026 can maintain timelines, cost control, and competitive conditions.

Where agriholding money will go in 2026: about GOL and other agribusiness players

Posted on 20.03.2026 by Piskun Yuliia

Soy protein, bioethanol, insect-based protein, solar power plants, food processing, poultry, and dairy production — these are the specific sectors where Astarta, MHP, Kernel, OKKO, Nestlé, Agroprodservice, Oliyar, and other agribusiness players will invest in 2026. Latifundist.com has compiled the key investment plans for the agricultural sector for 2026.

Fertilizers closer to ports

In approximately May 2026, a specialized logistics hub for the storage and packaging of mineral fertilizers will appear in the south. The project is being implemented by investors and partners Global Ocean Link and Timac Agro. The facility’s area will be 6,000 m², with a simultaneous storage capacity of up to 30,000 tons of bulk fertilizers. In the first phase, the hub will operate as a site for receiving, packaging, and logistical processing of products. In the future, the partners are considering expanding the facility into a full-scale production site. Over the next three years, investors plan to reach an annual processing volume of up to 100,000 tons of fertilizers.

Agriholdings are moving into processing. And not just oilseeds

In the new year, Astarta plans to complete the construction of Ukraine’s first plant for the production of soy protein concentrate in the Poltava region. The company announced the project back in 2021, with total investments reaching up to $80 million. The expected production capacity will be up to 100,000 tons of concentrated soy protein per year. The product is added to the diet of all types of animals, poultry, and fish. In September 2025, the installation of equipment already began at the plant. Astarta also plans to complete the construction of an oilseed processing plant, specifically for soybeans and rapeseed, in the Khmelnytskyi region in 2026. Capacity — 400,000 tons per year, investment — $76 million. Things are getting “hot” in the oilseed processing segment in the Khmelnytskyi region. Kernel’s “millionaire” plant, Starokostiantyniv OEZ, and Vitagro OEZ (which began processing all three oilseed crops in 2025) are already operating here. They may be joined in 2026 by Epicenter Agro OEZ, which is being built in the Podillia-Horodok industrial park. In the same location, the company is building another plant — for bioethanol production. OKKO is also betting on bioethanol in 2026. The company is preparing to launch the first stage of a plant with a processing capacity of 200–250 thousand tons of corn and a production capacity of 85 thousand tons of bioethanol per year. Additionally, they plan to produce feed from dried distillers grains (DDGS) here. By the way, the pioneer in this segment is Vitagro, which launched the production of such a product in 2025 at the Marylivka bioethanol plant. MHP is not yet launching a full-scale OEZ (though in 2025 it opened an oil extraction workshop at the Myronivka Plant for the Production of Groats and Feed), but it is also deepening its processing. At the end of the first quarter of 2026, the agriholding plans to open its first industrial pilot plant for the production of alternative insect-based protein. The company explained the choice of this direction by the global shortage of protein resources, environmental challenges, and the depletion of natural reserves, specifically the reduction in fish catches for fishmeal — a vital feed ingredient. Also, a plant for the production of high-protein feed additives and animal fats will appear in the Cherkasy region in 2026. Feednova Center will be the first in the central part of the country to process raw materials from external suppliers. Investments in production exceed €20 million.

At the future site of Feednova Center

Not all peas will go for export?

Another promising direction in which agricultural companies are starting to invest is pea processing. Traditionally, this crop in Ukraine has been export-oriented. As VNIS marketer Anna Hornitska notes, in 2025, the sown area under peas, according to estimated data, increased by approximately 20–30% compared to the previous season, reaching about 260–280 thousand hectares. Gross production, according to preliminary estimates, could reach 600–650 thousand tons depending on the region and yield level. This dynamics is primarily linked to attractive export market conditions and stable demand from foreign markets, particularly Turkey and EU countries, as well as periodic interest from India. “We take these market changes into account and have modern solutions for the pulses segment in our portfolio. In particular, having the Bosphorus pea in our portfolio allows us to meet growing demand and provide farmers with an adapted product within the formation of this market direction,” notes Anna Hornitska. She adds that if the favorable price situation and market demand persist, a further expansion of the area under peas is possible in 2026, gradually establishing pulses as an important element of the crop structure in Ukraine. However, it seems that a domestic market for peas is also gradually emerging. In 2025, the production of pea-based bio-glue began at the Korosten Industrial Park in the Zhytomyr region. It is used in the production of eco-friendly wood boards for the construction and furniture industries. The project’s investor — Korosten MDF Plant — plans to build a similar enterprise in an industrial park in Zakarpattia. The requirement for the new production is about 1 million tons of peas per year. For comparison, as of December 18, 2025, 672.2 thousand tons of this crop were harvested in Ukraine. Therefore, for now, part of the enterprise’s needs will be covered by imports from Hungary and Poland. Simultaneously, Korosten MDF Plant is holding consultations with farmers in the Zhytomyr, Kyiv, Cherkasy, Kirovohrad, and Dnipro regions regarding expanding crops and concluding long-term pea supply contracts. The potential of pea processing is also seen by the company TERRA. It already has the capacity to process about 25,000 tons of peas per year. In 2025, it announced plans to launch Ukraine’s first production of pea protein and starch. As Oleksandr Yasynskyi, co-owner and commercial director of the company, noted, there is currently no industrial production of these products in Ukraine. The market is mainly represented by soy ingredients and corn starch, a significant portion of which is imported.

Investments in food processing

Another attractive direction for agricultural companies is food processing. Interest in this segment is growing against the backdrop of stable demand for high-value-added products both in the domestic market and abroad. Specifically, Nestlé plans to expand the capacity of its new noodle factory in Volyn in 2026–2027, which it launched in 2025. The first production line allows for the output of up to 5,000 tons of noodles per year under the Maggi and Mivina brands. The factory is an export-oriented enterprise: about 75% of the products will be supplied to EU markets under the Maggi brand. At the same time, approximately 75% of the raw materials for production come from local suppliers; specifically, sunflower oil and flour are exclusively Ukrainian. Meanwhile, in the Kyiv region, construction has started on a large food plant, Neo Food System. The factory will specialize in the production of chilled ready-to-eat meals, as well as pasteurized, sterilized, and deep-frozen products. Capacity — up to 60,000 ready meals per day. The project is being implemented by the Sol Union group, which already has two plants in Dnipro producing ready-to-eat food, instant products, packaging grocery items, sugar and coffee sticks, as well as pasta, sauces, and jams. The investment in the Kyiv project amounts to 200 million UAH. Equipment installation will begin in April 2026, production launch is planned for May, and reaching design capacity is set for September 2026. Another project is the launch in early 2026 of Ukraine’s first plant for the industrial production of salt using innovative integrated technologies. The enterprise is located in the Odesa region and will produce food and industrial salt. According to preliminary estimates, the monthly production volume will be about 15,000 tons. Investments in the project are estimated at $2.8 million, and the state “5-7-9%” program has also been engaged. The berry processing segment is also growing. Goldberry plans to create its own berry freezing facilities in the Kyiv region. According to the head of the enterprise, Volodymyr Chornobai, the first stage involves a small plant with an annual capacity of 1,000–2,000 tons. In the future, the company is considering launching a large enterprise with a capacity of up to 60 tons per day, fully loaded with its own raw materials.

Individual quick freezing (IQF) of berries

From field to megawatts

Strengthening energy independence is one of the most pressing directions for agribusiness today. Companies are not only actively investing in their own generation now but are also allocating funds for capacity expansion in the coming years. Specifically, Kernel plans a large-scale project to build a solar power plant in the Chernivtsi region. The SPP capacity will be 250 MW, making it the largest solar power plant in western Ukraine. Project implementation is planned over the next two years. As noted by the company, the timelines will depend on regulatory conditions in the energy market and equipment supply logistics. The start of construction work is planned for the spring of 2026. By the end of 2025 or the first quarter of 2026, the OKKO group plans to commission its first wind power plant, “Ivanychi,” with a capacity of 147 MW in the Volyn region. Within 5 years, the group plans to increase its wind energy capacity to almost 1 GW. YASNO is now helping agricultural companies install “turnkey” solar power plants. As explained in a video by Kurkul.com, YASNO CEO Serhiy Kovalenko noted that demand for solar panels in the business segment began to grow as early as 2019. Although the market dipped in 2022 due to the start of the full-scale war, it returned to pre-war volumes by 2025 and continues to develop. For example, the installation of a 1 MW solar power plant at one of Ukraine’s largest dairy complexes for Holstein cattle, MTK “Petrykivske Moloko,” allowed for the coverage of 40–50% of its own electricity consumption.

Petrykivske Moloko Dairy Complex, 1 MW solar power plant

The complex belongs to AgroVista, which is also considering other bioenergy projects. The company is already preparing for the construction of a biogas plant. The raw materials for processing will be beet pulp, slurry, molasses, corn, sorghum, and energy silage. The capacity of the biogas station is planned at 5 MW. Biogas is also of interest to the company “Skif,” operating in the Poltava region. The project already has a raw material base, a land plot, and a developed concept; however, the company is postponing its implementation until the security situation in the country stabilizes. Furthermore, the Vitagro group announced intentions to build two more biomethane production plants, although specific implementation dates have not yet been voiced.

Eggs, meat, and cheeses: who will invest in livestock farming

Alongside crop production and processing, agricultural companies are gradually increasing investments in livestock and the dairy industry. Among interesting examples is the entry of a large oil producer into poultry farming. We are talking about the company Oliyar, which plans to build a poultry farm in the Lviv region. The poultry farm will consist of 20 poultry houses, 10 of which will be Type I CASA and 10 Type II DECK, with a total capacity of 2.3 million birds. The Hy-Line Brown laying hen breed was chosen for production. The farm is expected to produce over 1.6 million eggs per day. The Lviv-based company “Pollos” is also expanding its presence in poultry farming. It plans to build a new farm for raising broiler chickens in the Rivne region. The poultry complex will be set up at a former pig farm. Its annual design capacity will be about 990,000 broiler chickens. In the Zolochiv district of the Lviv region, on the territory of an abandoned cattle farm, the company “Duck Agro” will build a poultry farm. The project includes seven poultry houses, a feed mill, a feed warehouse, an administrative building, and auxiliary premises. The capacity is also substantial — up to 1.5 million birds per year.

In parallel with poultry farming, dairy projects are expanding in western Ukraine. Goodvalley Ukraine plans to build three modern dairy farm complexes in the Ternopil region. As of December 2025, the company has identified three land plots in the Saranchuky community, held auctions, and began processing permit documentation. Recall that in September, the Antimonopoly Committee of Ukraine granted the company permission to acquire the corporate rights of “Agro-Vita” in the Ivano-Frankivsk region. Holdings that have their own farms are gradually moving into dairy processing. Thus, Agroprodservice and Molokiya are jointly planning the construction of a new plant for the production of hard cheeses. The estimated capacity of the enterprise is the processing of 100 tons of milk per day with the production of up to 10 tons of hard cheese daily. For Agroprodservice, this is a new business direction. The company has 10 farms with a total of 15,750 head of cattle. The daily milk yield is over 175 tons in physical weight, with sales of more than 210 tons in adjusted weight. Molokiya will provide the company with production expertise and the sale of finished products. A new enterprise is also being created on the basis of the bankrupt “Hadyachsyr” plant in the Poltava region. It will produce soft cheeses, cottage cheese, and other products with a shelf life of 40–60 days. In early February 2025, the asset was acquired by the founder and president of the PRAVIO group of companies, Valentyn Zaporoshchuk. According to him, the design processing capacity could reach up to 1,000 tons of milk per day, and the investment volume is estimated at about €180 million, which they plan to raise from European funding sources.

Agroprodservice and Molokia plan to build a new factory for hard cheese production.

Privatization and concession of port assets

In 2026, we expect the privatization of at least two state enterprises (provided buyers are found) and the concession of terminals in the port of Chornomorsk. One of the closest events will be the online auction for the sale of Sumykhimprom, which will take place on January 13, 2026, on the Prozorro.Sale platform. The starting price of the lot is 1.088 billion UAH excluding VAT. For comparison, at the previous auction in June 2025, they tried to sell the enterprise for 1.2 billion UAH, but the bidding did not take place due to a lack of participants. The state also continues to look for an optimal privatization model for the Odesa Port Plant (OPZ). In November 2025, the auction for its sale did not take place — not a single participant registered. The starting price reached 4.49 billion UAH. Work is currently underway with potential investors to form a more balanced and attractive package of conditions for a resale. In addition, at the end of the year, it became known that the Ministry of Development launched the concession tender for the First and Container Terminals in the port of Chornomorsk. These are universal and grain sea terminals. Within the concession, existing state property — buildings, equipment, infrastructure, and berths No. 1–6 — will be transferred to an investor for 40 years. The concessionaire will also have the right to build new facilities and purchase necessary property for the development of the terminals.

Ukraine’s Foreign Trade: Record Indicators of January 2025

Posted on 11.02.202504.03.2025 by Piskun Yuliia

January 2025 has become a landmark month for Ukrainian foreign trade, demonstrating impressive results and positive dynamics of economic development. The total trade turnover reached$8.7 billion, indicating a steady economic recovery and growing confidence of international partners.

Import: Technological Breakthrough

Import operations accounted for the lion’s share of trade turnover –$5.7 billion. China, Poland, and Turkey remain Ukraine’s main trading partners in imports. The import structure clearly demonstrates a course towards modernization: the largest share belongs to machinery, equipment, and transport $2.2 billion), indicating active renewal of production capacities. Chemical products $901 million) and fuel and energy goods $734 million) also constitute significant volumes.

Export: Focus on Food Security

Export figures reached$3.2 billion, with European countries – Poland, Italy, and Spain – acting as key partners. Ukraine continues to strengthen its position as a global player in the food market: food exports amounted to$1.8 billion. The metallurgical industry also shows stability with an indicator of$325 million, while the export of machinery and equipment reached$282 million.

Comparison with Previous Year

Comparing with the same period last year, we observe positive dynamics in several key areas:

Growth in total trade turnover indicates restored confidence of international partners
Increased imports of technological equipment points to active modernization of production
Stable exports of food products confirm Ukraine’s status as a reliable supplier in the global market

Development Prospects

To further strengthen Ukraine’s positions in international markets, it is necessary to:

Continue diversifying export directions
Support modernization of production facilities
Develop logistics infrastructure
Simplify international trade procedures

The January 2025 indicators demonstrate that Ukraine is confidently moving towards integration into the world economy, strengthening its position as a reliable trading partner and an important player in the international market.

Driving a Greener Future: New Horizons in Automotive Logistics

Posted on 06.02.202506.02.2025 by Piskun Yuliia

In a world where environmental consciousness is becoming not just a trend but a necessity, Global Ocean Link takes pride in its role in developing sustainable transportation. We actively facilitate the import of electric vehicles, contributing to environmental preservation and the modernization of the automotive fleet.

The beginning of 2025 has been particularly successful for us – in January alone, we delivered 150 environmentally friendly vehicles, including a recent shipment of 24 brand-new electric vehicles. And this is just the beginning! Our future plans include even more deliveries of green transportation.

These results have been made possible thanks to our clients’ trust and our team’s professionalism. We understand the importance of reliable logistics in the electric vehicle import process and offer:

Comprehensive solutions for EV imports
Professional support at all stages
Transparent cooperation terms
Optimized delivery routes
Individual approach to each client

By choosing Global Ocean Link, you get not just a logistics partner but a reliable ally in developing your business. We take pride in helping make transportation more environmentally friendly and modern.

Our commitment to sustainable logistics goes beyond just moving vehicles. We understand that each successful delivery represents a step toward a cleaner, greener future. Our experienced team ensures that every aspect of the transportation process is handled with the utmost care and efficiency, from documentation to final delivery.

Planning to import or export? Connect with us, and we’ll develop an optimal logistics solution specifically for you!

Contact Information: [email protected]

Join us in driving the future of sustainable transportation. Let’s make a positive impact together!

New Challenges and New Opportunities: The Fertilizer Market in 2025

Posted on 29.01.202529.01.2025 by Piskun Yuliia

Despite the challenges of the full-scale war, Ukraine’s fertilizer market continues to grow, showing resilience and adaptability under the most difficult conditions. Before the full-scale invasion, fertilizers were imported from r__ї and біл__і, but everything changed once active hostilities began. Logistics chains and supplier structures have been reconfigured, and Ukrainian companies working in this market segment started seeking new creative solutions that ease their own operations and satisfy the needs of the end consumer for high-quality fertilizers—one of the key components to keeping the agricultural market functional. So let’s delve into the fertilizer market analytics in Ukraine and abroad in 2024 and at the beginning of 2025 together with Global Ocean Link.

January Trends on the European Market

The beginning of the new year for the European fertilizer market was marked by a sharp increase in prices. The cause lies in a host of interrelated macroeconomic factors. High gas prices, a weakened euro, low stocks, and logistical challenges have all contributed to fertilizers becoming more expensive. For example, the weak euro leads to higher import prices. This is precisely why prices for fertilizers in Germany and other European countries have risen since the beginning of the year. In particular, nitrogen prices went up, influenced by an increase in the cost of urea.

Another fertilizer that has increased in price is calcium ammonium nitrate. Also in Germany, the cost of ammonium nitrate–urea rose significantly. As we can see, the trend is clear.

Price Dynamics Last Year

Prices for urea and other fertilizers on the global market have always depended on a number of factors. Demand in large countries such as the United States, Brazil, and India has had a strong influence on them. Ammonia also deserves attention. Since it is a derivative of gas, the price of ammonia depends on gas prices. Although gas prices rose somewhat before last year’s planting season, that did not significantly affect the rise in the price of ammonia at that time. As for the current situation, compared to last year’s dynamics, price fluctuations upward are now much more palpable. And as already noted, this is influenced by a whole range of factors in the context of geopolitical and economic instability.

Last year in Ukraine, the ammonia market started with a deficit. This was partly caused by logistical supply chain problems and a lack of transshipment complexes at the border. Domestic manufacturers meet only part of the agricultural sector’s needs for this fertilizer.

Market Analysis 2024: Forecasts and Reality

Last year, the fertilizer market in Ukraine continued undergoing transformation. When the full-scale war began, sales volumes dropped by 50%. Some farmers used remaining stocks from previous years, while others completely abandoned the use of fertilizers for cost-saving reasons, given their economic difficulties.

Analysts had forecast that fertilizer demand would recover last year. The reason is simple: without fertilizers, crop yields decline. Thus, good fertilizers are not just an expense but an investment that brings a better harvest and higher profits.

Indeed, in 2024, these market-recovery trends have been observed. One leader in the Ukrainian fertilizer market is ammonium nitrate, as evidenced by consumer demand.

Let’s look at some fertilizers from a statistical perspective. For example, ammonium sulfate imports last year reached a record 435,500 tons, of which 182,600 tons were in just the last two months. More than 302,000 tons were imported from China. Among European supplier countries were Poland, Latvia, Belgium, and Serbia. As for Ukrainian production of ammonium sulfate, it totaled 90,000 tons over the year.

Overall imports of fertilizers last year rose by 14.5%. Key market trends are as follows:

Imports of three-component fertilizers increased;
Imports of nitrogen fertilizers also grew, reaching a total of 1.2567 million tons for the year.

Those are the key figures on last year’s fertilizer market.

It is worth noting that domestic Ukrainian production was unable to increase output due to shelling and the high price of gas. In this context, it is important to mention that:

The latest production run at Odesa Port Plant (ОПЗ) did not allow for new volumes of urea;
The launch of Dniproazot was postponed;
Rivneazot halted at the end of the fall due to insufficient energy capacity.

All of this coincided with a nearly 25% increase in gas prices.

GOL Company in the Ukrainian Fertilizer Market

GOL, as a leader in container and breakbulk shipping in Ukraine, pays great attention to the transportation of fertilizers. The company has 6,000 square meters of warehouse space for the safe storage of over 30,000 tons of fertilizers, located directly in the port area.

This is especially crucial for speeding up unloading services from vessels. Notably, among the 150,000 tons of product GOL transported last year, fertilizers were predominant—in particular, complex mineral fertilizers such as NPK, NP, and urea. Large volumes of urea and ammonium nitrate were also among the cargo.

Whether in bulk or in big bags, our company systematically delivers fertilizers, in batches from 3,000 to 10,000 tons, to Ukrainian ports. In the new year of 2025, we continue to maintain a high pace of operations and make a tangible contribution ensuring that Ukrainian farmers are supplied with the fertilizers they need for a good harvest.

Global Ocean Link in an expert column for UkrAgroConsult

Season of Changes for Ukrainian Logistics: How 2024 Rewrote Container Transportation Rules During Wartime

Posted on 19.01.2025 by Piskun Yuliia

2024 became another pivotal year for Ukrainian logistics. Military actions, the opening of container connections in Greater Odesa ports, changes in international trade, and infrastructure security challenges forced market participants to adapt to new realities. How has the industry changed? What innovations and solutions are helping to overcome difficulties? And what are the development prospects in such an unstable environment?

The challenges faced by Ukrainian logistics during the full-scale invasion are unprecedented. These include the need for operational solutions due to transport infrastructure destruction, port shelling, border blockades, reduced exports through traditional routes, and the search for new transit directions…

The constant threat of attacks forced higher security standards and the use of alternative routes – through Ukraine’s western borders (with expanded cooperation with neighboring countries) and the Danube (infrastructure development in Reni and Izmail).

In the second half of 2022 and 2023, the Danube helped compensate for losses from major port blockades, and its role cannot be underestimated. However, this year container shipments in this direction completely stopped, and infrastructure stands idle.

An important market factor was changes in insurance – the possibility to insure cargo against war risks emerged. At the beginning of 2024, this option didn’t exist. By mid-summer, it became possible within the country and at sea, though cargo couldn’t be insured while in port. Today, port insurance is available with limits of 100,000 euros and an average rate of 1.25%. This shift became another “building block” in stabilizing maritime transportation.

To optimize logistics processes, Ukrainian companies actively began implementing innovations. Electronic cargo management systems accelerated document flow and increased operational transparency, promoting consumer trust. Artificial intelligence usage ensures automation and acceleration of many work processes, allowing more rational use of human labor resources.

Despite difficulties, 2024 demonstrated the resilience and flexibility of Ukrainian logistics. It has many prospects, including:

EU Harmonization: Deepening relations with the European Union will lead to unified transportation standards and procedures.

Intermodal Terminals: Construction of new and modernization of existing terminals will facilitate cargo storage and handling.

Logistics Clusters: Creating regional centers uniting manufacturers, carriers, and distributors will make Ukrainian logistics more powerful.

Customs Procedures Reform: If transformations are real rather than “decorative,” this will promote better state-business interaction.

Regarding positive future changes, they’re evident from this year’s developments. The last quarter of 2024 saw major changes in container transportation. For example, MAERSK is placing direct vessels to its transit hub – Port Said. Also, though unconfirmed, CMA reportedly plans a direct container launch to Brooklyn in late December.

Piggyback transportation is also worth mentioning. And despite the low market for road transportation, movement toward EU integration is observed. In the grain market, traders essentially have no margin left.

Thus, this segment is gradually shifting from container transportation to bulk direction, where larger batches can achieve cheaper logistics. However, these shipments are still lower than the same period last year. Overall, the container transportation market currently comprises one-third of pre-war volumes, which is quite a good indicator. The full-scale war became a serious test for Ukrainian logistics, but new conditions sparked industry rethinking and modernization.

Container transportation proved its importance in maintaining the country’s economic stability, and 2024 became a year of significant changes that will determine logistics industry development for years. Future success will depend on military-political situation stability, reforms, and investments in infrastructure and human capital.

AGRO&FOOD SECURITY FORUM 2024

Posted on 20.12.2024 by Piskun Yuliia

International Agro&Food Security Forum 2024: New Horizons in Logistics Solutions

December 2024 was marked by a significant event in the world of agricultural logistics – the prestigious Agro&Food Security Forum held in Warsaw. Our team not only attended this large-scale event but also gained unique insights into the industry’s future.

In the heart of Poland, over 300 leading experts from 25 countries gathered together. The forum served as a platform for exchanging experience and seeking innovative solutions in agricultural logistics. Of particular value was the practical experience – visiting the CLIP Group intermodal terminal in Swarzędz.

The forum presented several defining directions for industry development that will shape the future of logistics. The first key trend was the digitalization of logistics processes through the implementation of artificial intelligence and blockchain technologies for supply optimization. The second important direction was environmental responsibility, which involves transitioning to sustainable solutions in transportation. Special attention was paid to the development of multimodal transportation, which ensures the integration of different transport modes to achieve maximum efficiency.

Our participation in the forum proved to be extremely productive. We were able to establish strategic partnerships with leading European logistics hubs and thoroughly study advanced supply chain management technologies. Thanks to the experience gained, our team developed new optimized routes for clients, which will increase transportation efficiency. The visit to the CLIP Group terminal made an unforgettable impression on forum participants. During the tour, we had the opportunity to see state-of-the-art automated cargo handling systems and intelligent warehousing solutions in action. Particularly impressive were the innovative environmentally friendly transportation technologies already actively used at the terminal.

The forum confirmed: the future of logistics lies in integrated solutions that combine technology, environmental sustainability, and efficiency. Our company is already implementing the acquired knowledge to enhance our service.

Stay with us to be the first to learn about innovations in the world of logistics and gain access to the most effective solutions for your business.

Global Logistics After Black Friday 2024: What Has Changed?

Posted on 17.12.202421.12.2024 by Piskun Yuliia

This year’s Black Friday and Cyber Monday not only brought record sales but also demonstrated the rapid transformation of the logistics industry as it adapts to new challenges and opportunities in the digital age.

New Records – New Challenges

Black Friday 2024 set impressive records in e-commerce history, with online sales reaching $10.8 billion according to Adobe Analytics, a 10.2% increase from last year, while Cyber Monday added another $13.8 billion to the holiday season’s total sales volume.

Key period indicators show significant growth:

• Total online sales reached a record $74.4 billion

• Peak hours recorded up to 4.2 million transactions per minute

• Mobile orders increased to 57.6% of total volume

Mobile Revolution in Action

The rapid growth in mobile orders creates new demands for logistics companies, which now must ensure faster order processing, more accurate cargo tracking, and improved customer communication through mobile platforms.

Omnichannel as the New Standard

Modern consumers increasingly choose a hybrid approach to shopping, combining online and offline channels, as confirmed by Block data: online sales grew by 16%, offline purchases increased by 31%, with online order average checks being 4 times larger than offline purchases.

Warehouse Logistics: New Approaches

Logistics companies are actively adapting to new market realities through the implementation of automated warehouse management systems, increasing staff by 30-40% during peak periods, and using artificial intelligence to optimize warehouse processes.

Innovations in Action

Technological solutions are becoming a determining factor for success in the logistics industry, including the use of artificial intelligence for delivery route optimization, implementation of predictive analytics for demand forecasting, and development of automated warehouse systems.

Financial Trends

New payment solutions significantly impact logistics processes: BNPL (Buy Now Pay Later) service popularity increased by 8.8%, instant payment implementation accelerates order processing, and digital wallet usage significantly simplifies financial operations.

Looking to the Future

2025 will bring new challenges for the logistics industry, including further digitalization of processes, development of flexible delivery models, increasing role of automation, and greater attention to business environmental responsibility.

Our expertise in organizing international transportation allows clients to confidently overcome holiday season challenges and maintain high efficiency of logistics operations throughout the year.

Preparing for future challenges, Global Ocean Link continues to invest in technological infrastructure development and staff training to ensure the highest level of service for our clients. We understand that success in logistics is based on the ability to anticipate and quickly respond to market changes, so we constantly expand our service range and improve existing solutions.

In conditions of rapid e-commerce development and growing delivery speed requirements, partnership with a reliable logistics operator becomes a key success factor for business. Global Ocean Link is ready to become your reliable partner in solving any logistics tasks, providing individual approach and high-quality service.

+38 (048) 797-20-48

[email protected]

Digital in shipping: prospects of e-bills of lading in Ukraine

Posted on 23.07.202402.08.2024 by administrator

Security has always been paramount in shipping. The industry continuously seeks new ways to improve cargo transportation, from protecting goods against theft and damage to combating piracy and ensuring safe conditions for the crew.

In the modern era of digitalization, cybersecurity has become a crucial aspect of shipping. Specifically, the industry is actively discussing the transition to electronic documentation. The implementation of digital versions of transport documents (electronic bills of lading, or eBL) can significantly reduce costs and make the cargo transportation process much more transparent and secure.

What is an electronic bill of lading, and why is it necessary?

A bill of lading is one of the most important documents in maritime shipping, essentially serving as a transport waybill for sea cargo. It confirms that the cargo is indeed on board and is being transported to the destination.

Additionally, the bill of lading is a legal contract between the shipper and the shipping company. It specifies the terms of the shipment, such as the route, delivery times, and the cost of services. This document regulates the relationship between the parties and ensures that obligations are fulfilled on both sides.

Moreover, the bill of lading functions as a document that certifies ownership of the cargo. In other words, whoever possesses the bill of lading is entitled to claim the goods at the destination. This is a crucial aspect because it allows the cargo owner to maintain control over the goods during transportation.

An electronic bill of lading (eBL) is the modern version of the traditional paper document. One of the key advantages of an eBL is that its digital format simplifies the contract process and reduces the risk of the document being lost or damaged. Furthermore, creating such documents takes up to five minutes, compared to the longer time required for traditional paper documents.

Electronic bills of lading in global practice

The implementation of electronic documentation in shipping is being driven by the Digital Container Shipping Association (DCSA). Founded in 2019, DCSA is a non-profit organization dedicated to promoting the digitalization and standardization of the global container shipping industry. It comprises over 100 members, including shipping companies, ports, terminals, freight forwarders, cargo owners, and technology providers.

According to Serhii Osypov, a representative of the Ukrainian logistics company Abordage Logistics, the practice promoted by DCSA has already been observed in the industry for some time. In the liner container shipping sector, 95% of transport documents exist in electronic form. Currently, customs authorities in Ukraine and EU countries do not require “hard” copies of documents. However, there is always the option to issue a paper version if required by contract conditions.

Moreover, the digital bill of lading is highly cybersecure, as it is built on a public blockchain network. Information about the eBL owner is stored on millions of devices, making it nearly impossible to hack the document. Each such bill of lading is unique, partly due to the use of NFTs (non-fungible tokens) by some companies.

The only potential cyberattack on secure eBLs is the so-called 51% attack, where attackers gain control of the majority of the network’s computing power, allowing them to manipulate transactions. However, such an attack is extremely costly and complex to execute.

Obstacles to implementation

Despite global digitalization, the shipping industry is currently not ready for a complete transition to paperless documentation. Market players face several challenges. From a technical perspective, obstacles include incompatibility between different systems and the lack of unified standards for electronic documents. This complicates the exchange of documents among various market participants.

Regulatory obstacles are also evident, involving diverse national laws and international norms that do not always accommodate electronic documents or require their legal recognition. However, the example set by Ukraine’s Ministry of Digital Transformation shows that a swift electronic transition is possible with the right motivation. Therefore, the fate of electronic bills of lading largely depends on state interest.

A few years ago, DCSA announced plans to transition 50% of industry documentation to electronic forms by 2025, with full adaptation by 2030. However, as of 2023, market adaptation was only at 3-4%, and it has since increased to 4-5%. The transition is happening, but not as quickly as anticipated, said Mykhailo Lepekha, a representative of eTEU, a company implementing electronic documentation in shipping.

Global forwarders primarily need eBLs as they spend significant amounts on courier services like DHL or FedEx. In Europe, courier services cost around $60, while eBL prices start at $10. Despite forwarders’ interest, negotiations with shipping lines often take a long time and are complex.

Challenges include distrust of new technologies among some market participants, the absence of necessary regulatory frameworks, and the complexity of technical implementation. This includes the use of bank letters of credit and documentary collections, which typically require the original bill of lading. Some agreements still mandate an original paper bill of lading between the seller and buyer, creating barriers to the full adaptation of eBLs since having an electronic bill of lading does not eliminate the need for the “usual format” of the document.

Paper versions are most typically required for order bills of lading and bearer bills of lading. These types of documents stipulate that the ship’s cargo must be delivered to the person who presents the bill of lading. Any person holding it can deliver the cargo to the buyer. The difference between these documents is that, unlike an order bill of lading, a bearer bill of lading does not specify the recipient’s name. These documents are more commonly used for delivering goods whose prices depend on exchanges (grain, oil, metals) or when cargo is sold from one company to another during transit. Order bills of lading and bearer bills of lading are also used when parties want to maintain anonymity. Here, eBLs ensure transparency and reduce the risks of “gray” exports. In this context, paper documentation becomes a matter of habit. For example, with documentation like bank letters of credit, banks are generally not very flexible in these matters. Therefore, electronic bills of lading are unlikely to be adopted soon in such scenarios, suggests Dmytro Kazanin, director and owner of TEUS.

Prospects for eBL development in Ukraine

The aforementioned company developing software for digitizing documentation in shipping, eTEU, showcased a significant reduction in document processing time during the launch of a pilot project in Ukraine. While processing a paper bill of lading takes eight days, the electronic platform reduces this to just one minute.

There are other examples of attempts to transition to eBL in Ukraine. Some large port operators and shipping companies (e.g., in Odesa and Chornomorsk) have conducted pilot projects with electronic bills of lading in collaboration with international partners. One such company, WaveBL, organized a presentation of eBL for Ukrainian clients a few years ago in partnership with the shipping company ZIM.

However, the issue of fully transitioning to eBL in Ukraine persists. The question remains whether Ukrainian shipping companies face additional challenges or advantages regarding electronic documentation compared to international companies. For international container companies, launching electronic documentation is likely not a problem due to their capabilities and market adaptation speed. The key factor is having a demand from the market and its participants. Interestingly, compared to many other European countries, Ukraine is advancing more rapidly in terms of electronic documentation.

The transition to electronic bills of lading in shipping is inevitable, albeit a slow process. Factors aiding the electronic transition in Ukraine include improvements in digital infrastructure, support from government bodies, and the desire to reduce paper bureaucracy and avoid the loss or damage to documentation. However, Ukrainian shipping companies may also face additional challenges such as insufficient digitalization of national infrastructure, lack of unified standards, and the need to comply with international requirements. At the same time, the advantages include reduced costs of paper documentation, faster and more efficient document processing, and the ability to integrate with international supply chains.

Pavlo Lynnyk, CEO of the logistics company GOL, states that the forecasts for full digitalization of documentation in shipping in the next 5–10 years are positive. It is expected that most Ukrainian shipping companies will transition to electronic documents thanks to the development of blockchain technology and enhanced cybersecurity.

Moreover, international organizations like the International Maritime Organization (IMO) are actively working on creating unified standards and recommendations to facilitate a faster transition to eBL. However, the key condition for this remains active support from the government and industry associations.