How will the cost of freight transportation change in 2022?

The market for services in the field of domestic and international logistics in 2022 has changed significantly. This is mainly due to the war that the Russian Federation unleashed against Ukraine. To this should be added quarantine restrictions, which are still in effect in many European and Asian countries, as well as an acute shortage of qualified drivers. All this has led to the fact that the price of cargo transportation, both domestically and abroad, has increased significantly, and, according to experts, has not yet reached its maximum.

Main trends in the field of cargo delivery

The attack of Russian occupation forces on Ukraine almost completely destroyed established logistics chains. This applies not only to the transportation of products within the country, but also to international cargo transportation. Firstly, constant shelling and missile attacks destroyed many transport routes, bridges, oil depots, warehouse complexes and other critical infrastructure. Despite this, cargo delivery within the country and abroad continues to operate, and also in an enhanced mode. Employees of the Grand Logistics Company make every effort to ensure uninterrupted supplies of necessary cargo to the hottest spots of the country. This primarily concerns medicines, food, clothing, personal hygiene products and other essential goods.

Secondly, it should be noted that with the onset of Russian aggression, the transportation of commercial goods almost completely ceased. Only a few months later, enterprises began to resume their activities. Many had to urgently evacuate their production workshops and offices inland, to safer regions.

Thirdly, transport companies had to face the need to develop new routes for the delivery of various products, since some types of cargo transportation turned out to be unavailable. This applies to air delivery and sea transport. In this regard, the load on rail and road transportation has increased significantly. Many highways were destroyed, bridges were destroyed, and some border checkpoints were temporarily closed.

It should be added that the majority of agricultural products were transported by sea, and these are huge volumes that, even with all their desire, the railways would not be able to cope with. Therefore, GLC logistics specialists are now actively developing new routes through river ports on the river. Danube (Izmail, Reni, Ust-Danube and Kilia). Today, you can calculate the cost of transporting cargo in the chosen direction by contacting the managers of “Grand Logistics Company” or on the website using an online calculator.

Experts' forecasts for the cost of cargo transportation in 2023

According to expert forecasts, in 2023 the level of freight rates will increase. This is explained by the instability of the political and economic situation in the world, rising prices for fuel, energy resources and spare parts, technical maintenance of equipment, the ongoing war on the territory of Ukraine, the lack of qualified drivers, which is only increasing every year, as well as the increasing risks of destabilizing economies in various countries of the world. All this directly affects the cost of cargo transportation, which has almost doubled during this year alone.

At the same time, it is expected that in the second half of 2023, the situation in the field of domestic and international logistics in Ukraine will significantly stabilize, and prices for services will stop rising.