Businesses lose €300 per day due to one truck idling at the Polish border – People’s Deputy

The negative effect of blocking the checkpoints on the border between Ukraine and the EU will be manifested in the coming years due to the disruption of long-term contracts. This was stated by Yulia Klymenko, First Deputy Chairman of the Verkhovna Rada Committee on Transport and Infrastructure, at a briefing at the Ukraine-Uninform Media Center.

According to her, private carriers estimate the downtime of one truck at about €300 per day. There are also indirect losses for business, such as the inability to predict the delivery time of goods under signed contracts.

According to Klymenko, the Ukrainian side can fulfill some of the protesters’ demands, such as access to the Shlyakh system and the return of empty European trucks without a queue. However, the requirement that cannot be fulfilled is a return to the permit system for Ukrainian carriers.

«Ukraine must insist on this – that this is still the liberalization of freight transportation. This is the main way for us now. If we return the number of permits that we had before the war, which is only about 200 thousand per year, we will actually reduce cargo transportation in Ukraine by three times. Accordingly, three times less goods needed by Ukrainians will be delivered to the country,» Klymenko explained.

The MP also commented on whether the Ukrainian side had taken any action in the face of the threatening trend that is now emerging – in addition to blocking by Polish carriers, there are now also Slovakian carriers. She noted that negotiations are underway at the diplomatic level with both Slovakia and Poland, but this issue should be resolved at the executive level. According to her, European institutions should also intervene with more effective tools, as Ukraine signed an agreement on freight liberalization with the EU.

It is worth noting that according to a quick survey conducted by the European Business Association in November among 55 member companies whose operations were affected by the strike at Polish-Ukrainian border crossing points, an average of one day of downtime costs one company about UAH 1 million in losses.

The Federation of Employers of Ukraine reported that as of November 22 this year, the Ukrainian economy suffered more than €400 million in losses as a result of the protest by Polish carriers. If indirect losses are taken into account, they are likely to be measured in billions of euros.

As GMK Center reported earlier, the blockade of border crossings with Poland threatens the entire economy of Ukraine. Long-term blocking of the border will lead to an increase in the cost of logistics and a decrease in the competitiveness of domestic exports. At the same time, Ukraine can only make limited compromises in terms of meeting the demands of the strikers.

  • Global Market

H2 Green Steel is considering four new major projects

Swedish startup H2 Green Steel has four new large projects that are close to moving…

Sunday May 19, 2024
  • Society

Metinvest will allocate UAH 50 million for the development of Kamianske in 2024-2025

Metinvest Group has signed a Memorandum of Cooperation in Social and Economic Development with the…

Saturday May 18, 2024
  • Industry

Ukraine increased imports of flat products by 32.7% m/m in April

In April 2024, Ukraine increased imports of flat products by 32.7% compared to the previous…

Friday May 17, 2024
  • Companies

Liberty and China’s CISDI finalize plans for EAF in Dunaújváros

Liberty Steel's Hungarian subsidiary, Liberty Dunaújváros, formerly known as Dunaferr, has signed a contract to…

Friday May 17, 2024
  • Global Market

Global iron ore exports increased by 6% y/y in Q1

Global exports of iron ore in January-March 2024 increased by 6% compared to the same…

Friday May 17, 2024
  • Global Market

EU launches trade investigation into Chinese tinplate

The European Commission (EC) has launched an investigation into Chinese tinplate to determine whether imports…

Friday May 17, 2024