Transport costs increased for 98% of Ukrainian companies due to strike on the Polish border
13 March 2024 21:00
The actions of Polish protesters, which impede the free movement of goods, create additional challenges for businesses in Ukraine, whose work is already burdened by the realities of wartime.
This is stated in a survey by the European Business Association of member companies on the economic impact of the strikes of Polish farmers on business, Kommersant ukrainskyi
reports.
The survey involved experts from 44 EBA member companies.
In general, 67% of the surveyed top managers reported that their business had felt the effects of strikes at Polish-Ukrainian border crossing points.
According to 36 participants in the special survey, the total cumulative amount of losses since the start of the strikes has been at least EUR 24.8 million. In terms of losses per company, this is almost EUR 700 thousand on average.
Strikes have had a significant impact on logistics costs. Thus, 98% of the surveyed companies report an increase in prices for product transportation services, while
- 23% of companies report a price increase of up to 50%,
- 32% – an increase of 50-75%,
- 25% – an increase of 75-100%,
- 16% of respondents reported a price increase of more than 100%.
At the same time, more than half, namely 57% of the surveyed companies, lost orders due to the border blockade. On average, companies experienced a 25% drop in orders. In addition, the strikes have negatively affected the plans of half of the surveyed companies to expand or develop their business.
Strikes affect both exporters and importers. Among the companies that took part in the survey, 66% are exporters and 91% are importers.
In addition to direct financial losses, companies report a negative impact of strikes on current and future contracts, damage to business reputation, threats to food supply, supply chain disruption, price increases and reduced competitiveness, increased warehouse costs and overloading of warehouses, threats of production stoppages and even closure of businesses.
Border blockade
Problems at the border began on 6 November 2023, when Polish transport companies began blocking truck traffic at three major checkpoints on the Ukrainian border: “Korczowa-Krakowiec, Hrebenne-Rava-Ruska, and Dorohusk-Yagodyn. One of the requirements was to reinstate the permits for Ukrainian carriers that had been cancelled under the agreement with the EU by 30 June 2024.
On6 January, truck traffic to the Medyka-Shehyni border crossingin Poland resumed. Three other border crossing points were opened on 17 January, namely Dorohusk – Yagodyn, Hrebenne – Rava-Ruska, and Korczowa – Krakivets.
on 9 February 2024, Polish farmers began a new nationwide strike and blockade of the border with Ukraine, which is scheduled to last until the end of April. The initiator was the independent farmers’ trade union Solidarity. The main demand of the protesters is to cancel the preferential trade regime with Ukraine and to return the permit system for importing goods to Poland.
Meanwhile, Poland has already imposed an embargo on Ukrainian grain, Polish Deputy Agriculture Minister Michal Kolodziejczak said.
Polish Minister of Development and Technology Krzysztof Hetman, in turn, said that Poland could impose an embargo on all Ukrainian agricultural products.
