Ukrainian companies have significantly increased transportation costs due to the blockade of the border with Poland
Kyiv • UNN
Due to the blockade of the Polish border by protesters, Ukrainian companies suffered significant losses of at least €24.8 million, increased transportation costs, and an average 25% drop in orders.
As a result of the blockade of the Polish border by protesters, Ukrainian companies have faced a jump in prices for transportation costs. This was stated by the European Business Association, UNN reports.
Details
It is noted that strikes on the Polish-Ukrainian border have been going on for more than four months, making the movement of freight transport through checkpoints significantly difficult and sometimes impossible.
The protesters' actions, which impede the free movement of goods, create additional challenges for businesses in Ukraine, which are already burdened by the realities of wartime.
Overall, 67% of EBA member companies surveyed reported that their businesses had been affected by the strikes at Polish-Ukrainian border crossing points.
According to 36 participants of the EBA special survey, the total cumulative amount of losses since the beginning of the strikes has amounted to at least EUR 24.8 million. In terms of one company, this is almost 700 thousand euros of losses on average.
The EBA emphasizes that strikes have significantly affected the cost of logistics. Thus, 98% of the surveyed companies report an increase in prices for transportation services.
At the same time, 23% of companies report a price increase of up to 50%, 32% - an increase of 50-75%, 25% - an increase of 75-100%. And 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, strikes have negatively affected the plans of half of the surveyed companies to expand or develop their business
Addendum
The European Business Association emphasizes that strikes affect the activities of both exporters and importers. Among the companies that took part in the survey, 66% are engaged in exports and 91% in imports.
In addition to direct financial losses, companies report negative impacts of strikes on current and future contracts, damage to business reputation, threats to food supply, supply chain disruption, price increases and reduced competitiveness, increased storage costs and overloading of warehouses, threats of production stoppages and even closure of enterprises.
Help:
The news article uses data from the Business in War Survey, which was conducted with 94 top managers of the EBA member companies, and a special survey on the economic impact of strikes on business, which was conducted with specialists from 44 EBA member companies. The surveys were conducted in February-March 2024.
Recall
Ambassador of Ukraine Vasyl Zvarych calls on Poland to end the border blockade, which has cost the Ukrainian economy $500 million and is having a detrimental effect on the Polish economy.
