The Ukrainian Danube Shipping Company has extended its agreement with iron ore consumers in European countries. The contract for the next year provides for a 30% increase in volumes. This was reported by UDP Deputy General Director Vladyslav Bielakh.
"The delivery of iron ore will be carried out by the modernized UDP fleet, which will ensure a significantly higher level of profitability for the company," Bielakh noted.
According to him, there are also preliminary agreements with producers and traders of agricultural products in European countries.
"Serbian farmers this year faced the problem of low-quality corn... but next year, the situation with the export of agricultural products from Serbia should improve significantly. During January-February, the market will still be at its lowest point. From March, we expect a significant increase in work for the UDP fleet. Next year, we expect to transport up to 600,000 tons of agricultural products from Serbia," the deputy noted.
He emphasized that preliminary agreements have been reached with both major traders and local producers who independently manage logistics to the port of Constanța.
In addition, the agreement will contribute to increasing the UDP fleet's workload and reducing competition from other carriers.
According to him, next year, UDP aims to build long-term relationships with clients but on flexible terms.
"We have a repaired fleet, we skillfully organize the loading process, and it's convenient to work with us. But not everyone is ready to sign long-term contracts on fixed terms right now because the market is unstable. That's why we chose the option of long-term relationships but on flexible terms, which is beneficial for both cargo owners and the shipping company," Bielakh said.
He stressed that as for agricultural exports from Ukraine, without state support, ensuring a guaranteed export flow through the Danube is almost impossible. The issue of a discount on the railway tariff to Izmail has not yet been resolved.
"The minimum necessary volume of cargo for the next year has essentially already been reserved for UDP, but increasing volumes depends on state policy regarding the support and development of Danube logistics," the deputy general director of the company summarized.
