No cost-effective logistics route for nitrate imports to Ukraine — expert

The recent decision by the Ukrainian Navy to ban the import of ammonium fertilizers via ports has created serious challenges for both the logistics and agricultural sectors. Disruptions in supply chains could lead to fertilizer price increases of up to 20%, which will inevitably affect production costs, Volodymyr Huz, Commercial Director of GOL, told Latifundsit.com

“Now, when preparations for nitrate shipments should be underway ahead of the autumn season, alternative routes must be explored — including the Romanian ports of Galati and Braila. From there, cargoes can be transshipped and transported to Ukraine via broad-gauge wagons. However, this is an expensive option for Ukrainian importers, since nitrate is a basic fertilizer with minimal margins. As a result, any additional logistics cost significantly affects demand. This will lead to higher prices for all fertilizers, as nitrate is a fundamental component in their production. That’s the kind of market we are facing this year,” Huz said.

According to him, an alternative to Ukrainian seaports could be shipment via Poland by inland waterway. But this would require major changes to the logistics system and would mainly apply to western and central regions.

Huz noted that there are few available transport options: overland routes through Poland, Slovakia, or Hungary; deepwater routes; or the Danube.

“Since the last two options are currently banned, only land transport remains viable. Even before the ban, nitrate was transported directly from ships to external storage facilities located outside cities, without accumulation in port. There were always risks, but operators sought to minimize them. If someone could now propose a logistics solution that is cost-effective and route-optimized, logistics companies could build a business around it. Unfortunately, no such solution exists today,” he added.

During martial law, Commander of the Ukrainian Navy, Vice Admiral Oleksii Neizhpapa, banned the entry of merchant vessels carrying explosive substances into Ukrainian ports. The corresponding letter to the Ukrainian Sea Ports Authority (USPA) is dated July 7, 2025.