Terminals profit nothing from reduced port charges, Allseeds CEO Petryshche

The end buyer is and will be the one who profits from the port charges reduction. However, the state budget will again be short of money. This was announced by Viacheslav Petryshche, Head of Allseeds Group.

"We have already seen a 20% charge cut. I will repeat again: the end buyer is and will be the beneficiary party this time and before because he will be offered our product a bit cheaper due to the reduced freight. But the state budget will receive nothing again. It is but a pure loss of the budget," he commented.

He noted that the reduction of port charges by 20% is less than 1 USD/t.

"I am stating this as a processor, a trader and a charterer in one person. I want to stress that no one has earned anything since the last drop in charges, including me. Virtually nothing. I do not understand who needs this. Is this USD 1 so crucial for our goods worth 200-1000 USD/t? It is just a manipulation," said Viacheslav Petryshche.

Previously, Head of Pivdenny Seaport Administration Maxim Shirokov stated that the policy of port charges and financial burden on the cargo base are the main challenges in the business.