There was a shortage of diesel fuel in Ukraine. It has become difficult to import fuel not under long-term contracts. The consequences of retaliatory strikes by the Russian army have also intensified other supply restrictions.
"The key factor in the market remained the physical availability of diesel fuel. There were practically no spot offers: all incoming resources were scattered instantly. The drawback became especially noticeable at the end of the week. Moreover, both in the south and in the west of the country," writes enkorr on the market situation last week.
So, in the second half of the week, navigation on the Danube almost stopped due to further shallowing: barges have already begun to run aground. At the same time, the Ukrainian edition writes with reference to importers, there are no free barges and tankers, and some of the latter have reoriented to oil transportation.
"As a result, vessels loaded with a draft of about 7 m found themselves in a difficult position: they can't get past Sulina. One of our vessels managed to unload enough to reduce the draft to an acceptable 6,7 m and continue moving. But not everyone is so lucky," Avalon Shipping operations manager Ekaterina Kononenko said on LinkedIn.
"In the west, delays are felt in both directions — rail and road. On the railway, fuel can be idle for eight days or longer, the wait for crossing the border by road, according to the "Queue", is 5-8 days," enkorr continues.
Importers are considering alternative routes, but this carries significant price risks due to the duration of transportation.
"Now, against the background of too high prices, long-distance routes are considered. But in two or three weeks, and that's how long deliveries can continue in this way, there may no longer be such prices," Martin Trade noted.
According to enkorr, on October 9, wholesale offers in the west exceeded 100 UAH (about 190 rubles) per liter.
Traders told enkorr that it will not be easy to fill the spot market quickly: "Logistical constraints delay the flow of resources, and alternative routes take time and do not guarantee the economic feasibility of supplies. The gradual completion of agricultural work can somewhat alleviate the situation in the south, which will reduce the seasonal demand for diesel fuel. At the same time, this factor is unlikely to eliminate the deficit quickly. When the issue reaches a new level, the creation of a special "fuel" headquarters by the government also indicates."