Realities of the market of fresh logistics in Ukraine

Any more or less successful Logistics company offers its customers a service of transporting perishable goods on a one-time or permanent basis. However, the quality of its implementation very often leaves much to be desired: the transport arrives with a delay, the cargo is damaged due to faulty refrigeration equipment, etc. In general, there is a clear tendency for the market to move into a state of severe collapse. But what are the reasons?

The problems of the industry and their solutions

A few years ago members of public organizations “Ukrainian League of Logistics and Warehousing” and “Cold Logistics of Ukraine” created a working group to identify key obstacles to the development of the market. It’s unfortunate, but their research remains relevant until today – changes in the industry are insignificant.

• The first and most important thing is worn out equipment, whose average age exceeds two decades. Trailers, vans and refrigeration equipment have already worked out the estimated service life several times, but carriers are slow to update the park. Why?• The second problem comes from the first – uncontrolled dumping in the industry. In the struggle for the client, companies are forced to reduce the price, subtracting from it more and more new costs: the purchase of equipment, major repairs used, etc.• Not the best conditions for leasing from Ukrainian banks and the instability of the economy pour oil on the fire – only the largest firms can decide on fleet renewal, but it will not pay off.

Experts believe that the current situation was the result of a lack of state regulation. You can disagree, they say, on the roads began to introduce weight control and slowly put order. But the fact that unscrupulous carriers intentionally violate the orders for transporting the short-port to improve margins of the operation – everyone knows. Yes, only the problem is not controlled in any way, either at the legislative or executive levels. Regulations and equipment for transport inspections are absent.

One way or another, there is the only sure way out of the situation – active work on the problems of the industry at the state level: the creation of favorable conditions for leasing, legislative base and tight control on the road. Only under such conditions will companies be able to improve the quality of transportation without significantly increasing their cost.