Port dues and tariffs in Ukraine remain among the highest in the Black Sea region and globally compared to other ports, according to Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih. He stated that freight costs continue to rise, but the company has not received any signals about a sharp increase in port tariffs. Meanwhile, the current level of port dues already significantly exceeds those of many foreign ports.
Longobardo noted that one of the reasons for this situation is the regulatory structure of the port industry in Ukraine: tariffs are approved by government agencies, but a comprehensive regulatory methodology has not yet been adopted. Furthermore, over 80% of port dues are channeled into budgets at various levels rather than invested in the development of port infrastructure. In the context of a full-scale war, shipping costs are also rising due to increased insurance rates for shipping in the Black Sea, attacks on infrastructure, and increased military risks for operators and shipowners.
According to the head of ArcelorMittal Kryvyi Rih, other factors are also impacting the plant’s operations, including power shortages and disruptions in raw material supplies. Specifically, attacks on ports are causing delays in coal deliveries, and the unloading process is taking longer than planned. Furthermore, the temporary shutdown of one of the two blast furnaces for a week resulted in a loss of approximately 25% of the monthly production, which also reduced coal consumption and impacted the plant’s overall production level.