Ukraine’s corn market faces mounting delays as logistics deteriorate, pushing prices upward: Platts
Logistical costs have surged dramatically, with traders reporting that transport costs have jumped by US$15–US$20, nearly doubling compared to earlier in the season.
UKRAINE – Ukraine’s corn market is facing escalating logistical disruptions that have pushed the Platts Ukraine corn FOB POC price up by US$5/mt month-on-month, rising from US$213/mt on Oct. 13 to US$218/mt on Nov. 13, as traders warn of worsening supply tightness and mounting delays at port terminals.
The sharp rise mirrors increases in CPT (Carriage Paid To) prices, which traders say are climbing steadily as internal bottlenecks cripple the movement of newly harvested grain, according to Platts, part of S&P Global Commodity Insights.
Logistical costs have surged dramatically, with traders reporting that transport costs have jumped by US$15–US$20, nearly doubling compared to earlier in the season.
Compounding this pressure, wagon turnaround times have reportedly been cut in half, significantly reducing the volume of corn able to reach Ukraine’s Black Sea and Danube ports.
Bombings, rail damage disrupt grain flow
Platts cite unrelenting Russian attacks on critical transport infrastructure, including railways, energy facilities, and storage nodes, as the primary cause of the delays.
“There are delays in deliveries because of the ongoing bombings,” a Ukrainian broker said, noting that frequent rocket strikes have caused interruptions in railway operations and created dangerous conditions for cargo movement.
Another seller observed that the lack of available product in ports is directly linked to the deteriorating logistics environment.
“CPT prices are rising because logistics are terrible. Rocket attacks have made railway operations very challenging,” the seller added.
Ukraine’s railway network serves as the backbone of agricultural exports, particularly since many deep-sea grain routes were compromised earlier in the conflict. Any disruption, traders say, immediately slows delivery timetables and tightens supply at port silos.
Moisture challenges and power shortages add strain
In addition to the security-related disruptions, infrastructure constraints are complicating grain handling and preparation.
Early-season rains have left corn wetter than usual, requiring extensive drying before shipment. But ongoing electricity shortages and air alerts have significantly reduced the capacity of drying facilities to operate at full scale.
“Demand is present. The problem lies in the significant delays in harvest and logistical obstacles, air alerts, electricity shortages and more. Corn is wet and needs to be dried,” an exporter explained.
With limited drying capacity available, exporters report that the lineup of vessels scheduled for November remains “very small so far.”
Exporters, producers struggle to meet contracted volumes
Producers are increasingly anxious about meeting earlier contract commitments and delivery schedules. One Ukrainian producer described the situation as critical.
“My main task is to deliver corn to the port terminals. The harvest has been delayed, and there are major issues with the railway infrastructure following the shelling. We still need to deliver 100,000 mt of corn to the port by the end of the month.”
The producer noted that no signs of improvement have emerged. “I don’t have any news about the situation improving; it’s only getting worse,” he said.
Exporters in the region echoed these concerns, emphasizing that sourcing corn has become increasingly challenging amid constant transport interruptions and infrastructure damage.
With demand from major importers in North Africa, the Middle East, and Europe remaining firm, traders expect price pressure to persist through December.
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