Interlegal at the conference Export Strategy: Trading and Logistics

The circle of participants consisted of traders, agricultural holdings, resource companies, as well as consulting, legal, financial and other companies. In frames of the conference, the participants discussed topical issues of logistics strategies, effective trading opportunities of Ukraine\'s transport infrastructure.

One of the issues discussed at the conference concerned producers` capability of doing self-reliant export of cereal products and exclusion of intermediaries on the way from the producer to the consumer to improve the margins of the business.

Most manufacturers that sell exclusively in terms of CPT delivery answer the question "What keeps you from self-reliant trade in such terms of delivery as FOB, CIF, etc.?" as follows:

(A) lack of confidence in the guarantee of volumes when discussing working conditions with the terminals, and thus difficulty in obtaining competitive transshipment rates,

(B) lack of experience with international proformas GAFTA and charters, as well as other instruments of cereals trade, such as bank letter of credit, escrow and so on.

(C) lack of experience in the settlement of disputes by GAFTA arbitration, in security and enforcement of arbitration.

These and other factors / risks rise doubts among the producers about feasibility of expanding terms of trade and keep them from development in these areas. And in addition, it is obvious that the list of Ukrainian grain traders in terms of FOB/CIF delivery is much wider than the range of well-known multinational traders.

Accordingly, it is difficult to deny the economic efficiency of a number of medium-sized Ukrainian and foreign traders doing business in Ukraine, and lots of them work with the terms of delivery as FOB / CIF in all seaports.

A wonderful platform to dispel doubts as well as to get more information straight from the horse\'s mouth is the annual conference of Maritime Days in Odessa 2015, which will take place together with the Grain Forum from 28-th to 30-th May this year; it will gather grain producers, grain traders and logistics business under the same aegis.

A few days, saturated with reports, round tables and a variety of networking activities will help all the participants not only get a lot of interesting and useful information, meet and start cooperation, but also support the existing professional acquaintances.

More information at Event web-site - www.maritimedays.odessa.ua , as well as a page in Facebook