Even as the world is fighting a battle with the pandemic, the impact of the Russian-Ukraine war has hit logistics and cargo like a Damocles sword. The conflict has made commercial shipping through sea routes in Russia and Ukraine suicidal. Most ports in the region are closed and commercial ships are not accepting orders from Russia or making port calls.
As per a statement, Container xChange, premier container leasing and trading marketplace, stated, “Due to disruption to commercial shipping on the sea lanes, we expect container build-ups at ports to exacerbate at storage areas in the region. The closure of airspace across Russia and Europe has reduced air freight capacity.”
It added, “Maritime trade with Russia and businesses could be difficult in the near future. On Monday, the UK has banned all Russian ships from entering its ports. What’s more, the EU intercepted and seized one ship. On the Asia-Europe trade, we see more demand for maritime shipments and equipment out of Asia due to modal shift.”
“Russian and Belarussian ports in the Baltic, Black Sea and Sea of Azov may see a build-up of boxes if carriers refuse port calls due to the precarious situation and sanctions. The full implications of sanctions are not yet clear, but the closure of the SWIFT system to Russia will make payments from Russian partners difficult.”
An official said, “Borders with the EU are closed. We expect the war to add to the stretched nature of global container supply chains, bringing more inflation and delays.”