Category: Blog

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.

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.

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.

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.

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.

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.

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!

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.

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.

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.

Contact us:

+38 (048) 797-20-48

[email protected]

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.

The logistics industry’s potential

In 2023, 68 countries increased their investments in infrastructure development. According to a World Bank study, private capital investment in infrastructure (PCI) amounted to $86 billion in 2023, which is $0.5 billion more than the average annual volume over the previous five years. The number of infrastructure projects in the world is growing dynamically. While in 2022 investors financed 260 projects, in 2023 it was already 322. In Europe and Central Asia, the infrastructure portfolio more than doubled over the year to 35 projects. Despite the predominance of investments in the renewable energy segment in global PPI, spending on port infrastructure development also doubled in 2023.

Nevertheless, representatives of the Ukrainian transport and logistics sector are optimistic despite the war. According to the results of the Infrastructure Index 2023 industry survey conducted by the European Business Association in cooperation with Arzinger and Sayenko Kharenko, 84% of companies are ready to resume shipping after the de-blockade of Ukrainian ports. Most of the surveyed companies intend to do so as soon as possible. At the same time, 66% of industry representatives consider the development of highways connecting Ukraine with the European Union to be the most relevant area for investment in logistics. In addition, 70% of transport and logistics companies are convinced of the need to develop a network of strategic transport hubs in the western regions of Ukraine. It is worth noting that 85% of the industry’s companies in Ukraine have either not stopped operating at all or have fully resumed operations.

Ukrainian logistics has generally adapted to the new realities and is successfully operating under martial law. The industry is recovering and integrating into the European and global transport and logistics network. Domestic agro-industrial holdings, trading and manufacturing companies, and developers are making a significant contribution to the development of Ukrainian logistics. Despite the difficult circumstances, new transshipment complexes are being built in Ukraine, and warehouse hubs and vehicle fleets are being modernized. Moreover, some companies are creating their own flotillas, investing billions of hryvnias in development, and, therefore, need to establish effective public-private partnerships and expect further European integration reforms. This can create the conditions for the Ukrainian logistics industry to attract foreign investment and reach a new level of development.

Logistics industry in Ukraine. Perspectives of development.

During communication with specialists of domestic logistics companies and local structures of international companies in Ukraine, one gets the feeling that the industry is optimistic about the prospects for development in the medium term. It is unlikely that this impression was formed due to the deliberate silence of companies on the negative aspects of their activities. Nor can it be spoiled by the change in the position of several international players in the Ukrainian market to a less public one. Of course, sometimes you hear comments like: “As long as there is something to carry for at least the current year, and then, perhaps, the fog will somehow clear.” However, there are very few such assessments, and more optimistic statements prevail. The most interesting thing is that the optimism of commentators is confirmed when analyzing the official statistical information available in the context of war.

Logisticians’ allies also add to the confidence in the industry’s positive prospects. Let us mention just a few recent examples. The agro-industrial holding PJSC Myronivsky Hliboproduct is buying a well-known logistics company. Another agricultural holding, Kernel, is creating its own flotilla to transport goods by water. The Novus chain of stores opened a powerful logistics center to further develop its retail business. And this is not a complete list. The achievements of transport and logistics companies and their encouraging assessments of the development of key segments of Ukrainian logistics are presented in our review.

The first part of the study is devoted to a general analysis of the state of affairs in the logistics market. The experts’ assessments are complemented by an analysis of industry statistics, which leads to the conclusion that the industry is resilient in the face of war. We also identified the trends currently prevailing in the transport and logistics sector of Ukraine.

The second part shows the dynamics of market processes and presents the results of the analysis of five key trends in logistics. Special attention is paid to the prospects for container transportation in Ukraine. After all, the level of containerization in the world is ten times higher than in Ukraine, and the country has a lot to strive for. For example, according to the World Bank, suppliers transport 35% of cargo in containers by volume and 60% by commercial value. This is a good benchmark for national carriers.

The third part of the report briefly describes the new challenges that logistics market participants will have to overcome in 2024. Almost two-thirds of business representatives have already publicly recognized the negative impact on the industry of the critical labor shortage and large-scale power outages. Preparing for an even worse situation, companies are investigating how to solve problems.

The situation in Ukrainian logistics: the overall view

Ukrainian logistics companies are recovering from the sharp drop in transportation volumes in the first months of the full-scale invasion. This is evidenced, among other things, by the positive dynamics of freight volumes over the past two years. According to the State Statistics Service, in March-December 2023, 282.4 million tons of cargo were transported by all modes of transport, while in the same period in 2022, only 231.1 million tons were transported. So we have a 22% overall growth. Monthly growth ranged from 17% to 30%. Of course, the volume of transportation remained significantly lower than the pre-war level, but the positive dynamics of indicators remained.

In 2024, the positive “cargo” trend continued. This is clearly demonstrated by the performance of the main segment of freight transportation: the railways, which traditionally accounts for about half of the total volume of freight transportation in Ukraine. According to JSC Ukrzaliznytsia, in the first five months of this year, rail freight traffic increased by 30% compared to the previous year. This significant growth is primarily driven by servicing the needs of exporters. The growth here is up to 57%. In January-May 2024, 75.4 million tons of cargo were transported by rail, of which 38 million tons were destined for export. The railroad is already transporting two-thirds of the pre-war level of cargo.

At the same time, experts emphasize the growing importance of land transportation. Logistics companies attach a special role to road transportation, and some even call it the key in the transport complex. Experts also note the high dynamics of road transportation in Ukraine. “Road transport is currently developing the fastest,” says Mykhailo Lymar, CEO of Meest China. Transporters also draw attention to the high ability of road transportation to adapt to circumstances. For example, in response to the blockade of the Polish borders, carriers sent trucks with goods across the borders of other countries or switched to using smaller trucks that were allowed to pass through during the border blockade*.

Despite the prospects of the “big water”, the Danube route plays an important role. It was in particular demand from early 2022 to mid-autumn 2023. According to the CTS estimates, in 2023, operators transshipped almost 52% of all sea cargo through the Danube ports. Then the demand for transportation capacity on this route slightly decreased due to the resumption of transportation through the Ukrainian Black Sea corridor. “However, we are currently maintaining a stable demand for a total flow of 250-300 thousand tons per month using all local capacities of the ports of Reni, Ismail and Orlivka,” GOL, an Odesa-based company, said.

By the way, the commodity structure of cargo transportation is also stabilizing. The share of commercial cargo is growing in the structure of transportation, gradually replacing humanitarian aid. The volume of grain cargo transportation by sea is increasing. Agricultural and metallurgical products traditionally occupy key positions in exports, while fuels and lubricants and engineering products are the main imports. Food cargo is mainly represented by grains and oil seeds, vegetable oil, sugar, etc. There is also a stable demand for logistics companies’ services in the FMCG segment, with only a declining share of expensive goods in the overall turnover structure. Demand for military cargo transportation is also growing.

Among the key industry trends, experts highlight:

• the restoration of the country’s transport and logistics infrastructure;
• active development of logistics transshipment complexes;
• increased demand for consolidated cargo delivery and handling services;
• growth in fulfillment volumes;
• high demand for warehouse logistics;
• the restoration of container shipping;
• further automation and digitization of the industry.

Logistics companies also strive to integrate various logistics services – warehousing, transportation, and customs – into a single platform, enabling operators to manage supply chains more efficiently. There is a growing trend towards creating strategic partnerships and alliances between logistics providers, manufacturers, and retailers. According to DB Schenker, such partnerships optimize costs and improve service quality by pooling the resources and expertise of participants.

Industry representatives are developing solutions to address issues caused by labor shortages and the worsening energy situation. Some companies have already started actively involving women in transportation roles, and measures to improve logistics energy efficiency are being implemented.

New challenges in Ukrainian logistics

The year 2024 has brought an increase in workforce shortages and a lack of energy resources for domestic logistics. Due to the mobilization of Ukrainians, there is a growing labor shortage in the industry. “The situation with personnel is getting more complicated, their cost is rising, and finding a specialist is becoming increasingly difficult,” notes Meest China CEO Mykhailo Lymar.

Today, the issue of staffing is extremely pressing. According to representatives of GOL, in just one week – from May 13 to 17 – 22 drivers hired by the company for transportation fled (yes, fled) from their jobs. The following week – from May 20 to 24 – another 15 drivers did the same. The reason is clear: drivers are afraid to go on routes because they are detained, checked, and often mobilized directly during their trips. Industry participants believe this trend is very alarming as the number of drivers continues to dwindle. GOL CEO Pavlo Lynnyk and the company’s Commercial Director Volodymyr Guz call for urgent action to address this issue.

“Booking drivers hasn’t been a ‘cure-all.’ There have already been cases where even booked drivers were taken off their routes for re-checking. This, at the very least, leads to lost time in cargo delivery. So, there are many misunderstandings in this matter, and the reasons for them need to be eliminated,” say GOL executives.

The expected resumption of regular container traffic to the ports of Greater Odesa has encountered difficulties that went beyond the maritime industry last month. First, the first call of the Turkish container carrier Akkon was disrupted, then the postponement of a voyage of the global leader in container transportation, the Swiss MSC Mediterranean Shipping Co, became scandalous, and the partners of the feeder service of the Ukrainian company Iteris also had problems.

The reason for this was the joint measures taken by a number of government agencies to conduct additional inspections of export agricultural cargo in containers, which significantly slowed down customs clearance and the transportation process itself. The problem demonstrates the lack of full coordination between the government and business, which is often lacking in our realities. Therefore, the most urgent task is to find opportunities to combine the interests of economic protection of the state during the war and to ensure proper conditions that will facilitate the return of international container lines to the ports of Greater Odesa. The elite of the global container business is currently testing this capability of our country. The conclusions, as we can see, are partly disappointing.

How did the mass media response illuminate the problem?

A few weeks before the launch of the MSC service, the Ukrainian industry community was already actively discussing the difficulties encountered in clearing export containers at the ports of Greater Odesa. Businesses were surprised by additional cargo inspections that effectively blocked the transportation process. It was not clear how long these procedures would take. The accumulation of containers at the terminals grew along with the indignation of market participants.

At the same time, entrepreneurs noted that containers with similar export cargo passed through other border crossing points according to the standard procedure – additional checks were carried out only in the ports of Greater Odesa.

According to Global Ocean Link (GOL), a logistics company, only a fifth of the approximately 700 export containers were cleared through customs during the preparation of the first MSC call. It became clear that the ship was simply not getting enough cargo, so the first voyage was canceled.

In the end, the Association of International Freight Forwarders of Ukraine (AMFU), which unites more than 150 leading freight forwarding companies, spoke up. “The reason was unreasonable cargo inspections and delayed customs clearance of export containers with agricultural products for an indefinite period, which blocked the cargo for an indefinite period and made it more expensive due to additional storage and demurrage costs (compensation for losses for vessel demurrage – Mind), which can reach $2000-3000,” AMEU said last week.

The association called on the authorities “to help solve this problem and prevent negative consequences for Ukrainian logistics and the economy.” This release made quite a splash in the national media. The very next day, industry leaders, including representatives of container lines, met with the head of Odesa Customs, Yuriy Cherdintsev.

After the meeting, the head of the customs office publicly assured that he would help solve the problem within the customs authority. And the head office of the State Customs Service tried to explain the reasons for additional inspections of export containers: “The concern of business representatives, and therefore the delay in submitting containers for customs clearance, is caused mainly by the fact that regulatory and law enforcement agencies are working on the facts of illegal export of agricultural products and cases of arrest of containers with such products.”

How will additional control measures affect container shipping?

In fact, the problem became the subject of public statements by some government agencies only when it rose above the “media waterline.” And when the focus of attention became the global business giant MSC, headquartered in Geneva.

Unfortunately, the first serious failure occurred a little earlier. In early June, the Turkish container line Akkon took the risk of bringing the container ship Elbe to the Black Sea seaport as part of the resumption of its service to Ukraine’s deepwater ports. Due to additional cargo checks and delays in procedures, the call was disrupted and the ship left the port empty. However, this scandal did not receive any media coverage at the time. Nor were there any public explanations from the relevant government agencies.

Similar problems were also reported by shippers in the Black Sea fishing port, which receives the Iteris Feeders service (Chornomorsk – Constanta), whose key partner is another container giant, the Danish Maersk. As a result of these complications, the service’s vessels were underloaded.

Why are additional checks of export containers made?

“The reasons declared by the state authorities for strengthening export cargo inspections are to ensure financial discipline, accounting and reporting, fulfillment of obligations to the budget by foreign economic entities, economic security, overcoming shadow mechanisms, de-shadowing and de-offshoring of the economy,” Konstantin Moryakov, attorney at law at ANK Law Firm, explains to Mind.

The relevant list was published by the Odesa Military Administration (OMA) and the State Tax Service of Ukraine in August 2023. The list is part of the development of the procedure for cooperation between Odesa Customs, the Main Department of the State Tax Service in Odesa region, and the Territorial Department of the BES in Odesa region. In matters of compliance with financial discipline by business entities in the field of foreign economic activity under martial law. In addition, an open memorandum of cooperation was announced between the Odesa Regional Office, state authorities, local governments and business entities, which is open to all interested parties.

“The said procedure, developed based on the joint order of the DIA and the military command dated 18.08.2023 No. 19, launched joint measures by the said state bodies regarding risky export operations of products from Ukraine, in particular agricultural products, verification of the legality of their origin, as well as imposing additional responsibilities on freight forwarders, port operators and other business entities involved in this process to submit documents, information, etc.”, explains Moryakov.

“It is interesting that the said procedure of interaction also involves the Main Department of the State Tax Service in Odesa region, which, among other things, now appears to be engaged in analyzing and verifying the source of origin of agricultural products, providing so-called analytical certificates with its conclusions, which generally falls within the competence of the customs, according to the Customs Code of Ukraine,” the lawyer adds.

How is the additional regulation realized in reality?

“We often hear from our clients that, under the guise of the above reasons, all export containers are subject to a continuous inspection, customs declarations are not issued (even after the inspection), cargo loading orders are not approved, cargo is seized, searches and seizures are carried out, etc.,” says Moryakov.

Thus, on the one hand, the state encourages foreign business to work in Ukraine, assuring it of favorable conditions. On the other hand, the state complicates the conditions by creating additional regulation, using exclusive powers during martial law, increasing the number of state bodies involved in inspections, etc.

“Foreign shipowners are also becoming hostages of the situation, as they make a difficult decision to resume ship calls to Ukrainian ports and are faced with the fact that due to lengthy inspections of export containers and, often, seizures of the cargo contained in them, they are forced to leave the port underloaded or even empty, as a result of which they suffer losses and reconsider their decisions to operate in Ukrainian waters,” the lawyer notes. “Frankly speaking, we hear from our clients about pressure on them, which in some cases is accompanied by signs of corruption, forcing them to take measures to protect their rights and interests,” emphasizes Moryakov.

What can solve the problem?

According to the lawyer, despite the “traditional” delayed reaction of government agencies, the meeting between industry representatives and the management of the Odesa Customs proved that a dialogue between the state and business is possible, and even more so, necessary.

“Perhaps, if such a meeting or a meeting, for example, at the Odesa Customs, between business and government representatives had taken place before or after the agreement on the procedure for interaction and new requirements based on a frank dialogue and the search for the optimal format of cooperation, this scandal could have been avoided,” the lawyer said.

“I believe that it is necessary to draw conclusions from the current situation and move forward by implementing modern practices of high-quality dialogue between the state and business to prevent negative consequences for the state in the future, to maintain a balance of interests for the sake of the common goal – the growth of the Ukrainian economy,” Moryakov summarized.

How did MSC react to the Ukrainian problems?

These complications forced the world’s largest container carrier to respond appropriately to changing circumstances. After the first voyage was canceled, the company has postponed the date several times. At the time of publication, the first call was scheduled for July 7.

During the period of uncertainty, the carrier even changed the vessel to operate the service twice. However, the latest update of the schedule again features MSC Levante F.

Obviously, the final decision on the main parameters of the service will be made by MSC only after the situation in Odesa has actually improved. Therefore, the updated call date has effectively become a new deadline for testing our country’s capacity to operate. The preparations for the rescheduled voyage are finally going well: the second call of the Turkish Akkon container ship Elbe to the Black Sea port took place last week, with the vessel delivering containers to Constanta.

How does the rescheduling of the MSC impact the market?

“The biggest problem is the reputational risk, which can greatly affect the market,” GOL Commercial Director Volodymyr Guz told Mind. ”The first direct call of the largest global container line to the ports of Greater Odesa was supposed to take place – it was a landmark event. Unfortunately, our state authorities did not take this fact into account – due to bureaucratic procedures, Ukraine does not look good abroad.”

At the same time, Guz is convinced that MSC will resume ship calls to Odesa. “There will definitely be a second call, but if this happens again, we will face serious issues with the possibility of resuming container shipping to the ports of Greater Odesa. This story has a negative impact on the plans of other container lines to return to Ukraine,” adds GOL’s commercial director.

In addition, the detention of containers did cause material losses to shippers. Additional costs may force market participants to refrain from using Ukrainian deepwater ports for now. “Why work directly through the difficult situation in the ports of Greater Odesa when there are alternatives, such as Constanta and Gdansk? These destinations are now equivalent or even better in economic terms than Greater Odesa. So why bear the additional risks of calling at Odesa, considering delivery times and other factors, and not receive any financial benefit? These are the questions that service users may ask themselves,” Guz reflects. “Yes, the resumption of ship calls to Greater Odesa is good news, but if the economy is not considered, no one will use the services regularly,” he added.

“ Thus, it is difficult to overestimate the resumption of regular container traffic to the ports of Greater Odesa by global players. In addition to a direct increase in exports and the gradual stabilization of our maritime container market. The return of ship calls will give confidence to the maritime and port industries, allow us to keep logistics and infrastructure costs within the country, etc.

Peak Season Surcharges: Analytics in Figures

Pre-war Indicators: Real Prospects or Unjustified Expectations

The new law on mobilization has significantly shaken the field of road transport because the latter must look for a new risk management strategy. The lack of drivers, trucks left abroad in the middle of flights, the impossibility of predicting the actions of border guards when checking documents – everything that the field of road transport is already facing. However, the law came into force only a few weeks ago. As a result of all the listed challenges, the conditions of road transport have changed significantly. The blockade of the borders by Polish carriers, who renewed their resistance a few days ago, is being signaled. “Dark times” impose their limitations, and this forces transport and logistics companies to look for more flexible and efficient solutions.

Global Ocean Link General Director Pavlo Linnyk told Mind what factors influence the transformation of road transport in Ukraine and what immediate solutions are needed by road transporters.

FOPs also require reservations

Every day, many drivers working for Ukrainian logistics companies cross the state border. At the same time, there is no clear system for booking international drivers. This was stated by the vice-president of the Association of International Motor Carriers of Ukraine, Volodymyr Balyn. According to him, the current reservation system does not consider the specifics of the industry. For example, Government Resolution No. 76 does not regulate the issue of armor for FOP. Instead, a significant part of carriers work precisely as individual entrepreneurs.

Representatives of the industry rightly believe that it should be considered as critically important for the economy: like the agricultural sector, IT, and other important areas. So it is not surprising that drivers are already protesting against ill-conceived changes.

Drivers are being replaced by women and men 60+, but the industry needs systemic solutions

The described problem needs to be solved urgently because the business cannot adequately conduct its activities in connection with the introduced restrictions. First, those who created the issue should deal with the solution. Both at the level of regulatory and legal acts and at the level of their implementation, there should be no artificially created complications that paralyze the work of entire industries.

There are fewer and fewer drivers. And if nothing is done in the direction of constructive changes, then point X will come when it will be necessary to completely switch to rail transportation due to the impossibility of finding a car for the route. And here it will not even be about the price.

We work in our industry legally and have the status of critical importance for the economy of the enterprise, so we solve the issue by booking our driver employees. But even this does not become a “panacea” because there have already been cases of removing the driver from the flight for re-checking: even when he is booked. This, at a minimum, leads to a loss of time when the delivery of the cargo is delayed for 1–2 days. This adds to many misunderstandings with customers.

If we analyze this situation in the context of “what happened and what happened”, then the strengthening of checks at the border created a certain pressure on the industry. So, previously it was enough for drivers to show invoices and registration in the Shlyah system. Now border guards must ask for military registration documents. The protest held by the drivers clearly testifies to their attitude towards this.

If the problem is not solved at the legal and organizational levels. In the near future, we may face the fact that it will become extremely difficult to hire a car for transportation because drivers will be afraid to get behind the wheel. In particular, this may cause logistics disruptions in the eastern regions. In the west of Ukraine, for example, Polish carriers may come to replace Ukrainian carriers. However, they are reluctant to go to the eastern regions. The consequences will be felt by everyone: both exporters and importers. The issue will not escape those market players who carry out internal road transport. One of the options for transport and forwarding companies can be the involvement of women who are not subject to mobilization, and men of unappealing age, in particular, 60+. This is one of the solutions currently used by market participants.

However, such solutions have drawbacks, in particular, when it comes to training drivers who have not had long-term experience in working with trucks. Driving a car is much easier than, for example, understanding what happened if the car broke down on the road. For this, you need to have the appropriate skills and sufficient practice. Therefore, it is time to wait for a quick adaptation of female drivers to the new conditions.

However, it is impossible to completely solve the problem in this way. Currently, an active dialogue between the state and private business is needed. Only this allows us to discuss a two-sided vision of the problem and ways to solve it.

Drivers of draft age refuse to return to Ukraine

Cases of cars left abroad by hired carriers have become more frequent. Everything is solved by the quick dispatch of replacement drivers, but the trend itself is alarming and shows that the legislation on booking drivers is not well-thought-out. There are rare cases of drivers being removed from flights right on the way under customs.

Lawyers have to intervene in the situation. As a result, there is a slight panic in the road transportation market. And although the prices have not gone up yet, it is increasingly difficult to find the optimal car. So, according to the statistics of the GOL company, 22 drivers who were not in the state, but hired for transportation, ran away only in the week of May 13-17.

During May 20-24, another 15 drivers escaped. Of course, the problem was completely solved by the company itself. Therefore, the client’s business has not suffered from this yet. Of course, all cargo that can be loaded into a container can be alternatively transported by our team by both rail and road transport.

But here everything depends wholly on desire and undefined readiness of the client to reformat. However, the trend itself, how the implementation of the mobilization legislation affects the transport and forwarding industry, is worrying.

Potential consequences are an increase in price and time for logistics

It is also worth considering what the consequences may be if the concern is not solved. This is an increase in the cost of goods as a result of an increase in the cost of transportation. And if the final cost of some goods reaches a critical limit, it will be unprofitable to import them.

In addition, it is worth remembering basic behavioral economics, when in the case of difficulty in making one choice, consumers make another. More customers will switch to rail transportation. And this is logical because the train will not be stopped on the way by removing the driver.

The next inevitable consequence in the long-term context will be a slump in the markets for cheap products. This will happen because the cost of logistics will increase. It will be impossible to transfer this factor to the final consumer. The part of the market related to the ports of Reni and Ismail and transportation through the Romanian port of Constanta will also decline. As practice shows, many drivers no longer want to go in this direction because it is here that driver checks have become more frequent.

Some believe that for the white market undefined carriers, the situation will be better than for the so-called gray segment, but it is difficult to predict. It is also possible to find an alternative and replace motor vehicles with railways where there is such an opportunity. For example, in cooperation with the ports of Poland, such a format has been established. Despite all the mentioned alternatives, it is worth understanding that they will not solve the problem systematically.

The ratio of the volume of cargo transported by road in our company is 2 to 1 (that is, 66% is by car, and 33% is transported by rail). We are a multi-directional company. Among the cargoes are household chemicals, minerals, steel, polymers, fertilizers, household appliances. All these market segments require uninterrupted transportation for the industry to function effectively.

Carriers must unite their efforts

The conclusion the industry can draw from this issue is that proactive participation from market players and dialogue with legislative initiators are essential. On their part, it is crucial to refrain from making rash decisions that could severely impact the entire supply chain, leading to shortages and even problems with delivering humanitarian aid. These mistakes have already been made today. Whether they will be corrected in time will be revealed in the near future.

Ukrainian logistics is undergoing dynamic changes influenced by factors such as war, political and legal decisions, and a whole range of other circumstances. However, the key aspect is that its representatives constantly keep their finger on the pulse of the news and seek ways to effectively respond to new challenges.