Border blockade raised freight prices

Author: Marek Szymański
Border blockade raised freight prices

The blockade of Poland's border crossings with Ukraine is intensifying. Currently, 4 border crossings are already blocked: in Dorohusk, Hrebenne, Korczowa and Medyka. The market effect of the protest, which has already lasted nearly a month, did not have to wait long. Due to the lower number of trucks on the market, freight prices have risen and many manufacturers are unable to deliver their products on time.

Polish hauliers are demanding the removal of special rights for transport companies from Ukraine, which are not bound by the requirements of the Mobility Package. Protesting drivers believe that some Ukrainian companies take advantage of their privileged position to carry out commercial transport instead of carrying out humanitarian transports. 

– The liberalisation of road haulage between the EU and Ukraine in the form of abolishing road permits has led to a threat to the operation and existence of Polish road hauliers in this market. In our opinion, the decision was taken without adequate analyses of the consequences and the consequences that will be borne by EU hauliers and, above all, Polish ones – said Jan Buczek, President of the Association of International Road Hauliers in Poland, in a letter to the still-in-office Prime Minister Morawiecki. 

Experts also point out the economic impact of the protest. This is because the capacity restriction on the Polish-Ukrainian border has partly interrupted supply chains to the European Union and in the other direction (via ports in Poland and Germany). Freight prices have also increased. According to Joanna Porath, owner of the customs agency AC Porath, freight rates on some routes are even 300-350 per cent higher than before the protest. And they are likely to rise further. The Poznań-Kiev connection cost €2100-2200 before the outbreak of the protest, and recently even €7000, adds Joanna Porath. After the outbreak of war in Ukraine, the European Union lifted permits for Ukrainian carriers, which was supposed to be in force until 30 June this year, but officials in Brussels extended the period until 30 June 2024.