Prices for import cargo transportation increased by 25%, for export cargo – by 35%. Demand for transportation to Russia decreased by 26%, which may be caused by banks’ fears of falling under secondary sanctions. This data is provided by the international Freight Exchange ATI.SU.
At the end of the first quarter, the number of applications placed on the ATI.SU Freight Exchange for the transportation of goods to Uzbekistan from other countries (import) increased by 51% compared to the same period in 2023. Delivery prices increased by 25% year on year. The demand for transportation from Russia, Kazakhstan and Belarus has increased significantly. Thus, the number of applications for the delivery of goods from the Russian Federation in the first quarter increased by 56%, and prices increased by 26%.
“In general, we are seeing a continuation of the trends that emerged at the end of 2023. Demand for import transportation is growing at a good pace, which is largely due to the economic development of the country. At the end of 2023, the republic’s GDP grew by 6%, while the growth of the global economy did not exceed 3%, noted Farid Vakhidov, director of the representative office of the Freight Exchange ATI.SU in Uzbekistan.
Meanwhile, export shipments continue to show a decline that began in mid-2023. The number of applications placed on the ATI.SU Exchange in the first quarter decreased by 24% in annual terms, although prices increased by 35%. The number of applications for transportation in the direction of Kazakhstan and Belarus decreased slightly, but the demand for transportation to Russia decreased by a quarter, which caused a general decrease in demand in export directions. Thus, cargo transportation between Russia and Uzbekistan remains the main market driver in 2024.
“In export transportation, especially if we talk about the Russian direction, a typical correction is taking place after a rapid “sanctions takeoff.”
Demand for transportation in the direction of Russia is now hampered by payment problems caused by new packages of sanctions and banks’ fears of falling under secondary sanctions. Some market participants are already talking about such difficulties. If banking control continues to tighten, this could become a serious deterrent for customers, and therefore for the cargo transportation market,” says Farid Vakhidov, director of the representative office of the Freight Exchange ATI.SU in Uzbekistan.
Meanwhile, trade turnover between Uzbekistan and Russia continues to grow: in 2023 it increased by 11.5% compared to 2022. Therefore, experts expect the demand for road freight transportation between countries to stabilize.
