As the invasion of Ukraine escalates, international institutions and businesses have begun suspending services to Russian and areas of conflict.
In addition to economic sanctions announced over the past week, the following is a summary of how transportation service disruptions will affect global supply chains:
SHIPPING
- Ocean Network Express (ONE) and Hapag-Lloyd have suspending calls to both Ukrainian and Russian ports.
- Maersk suspended calls to Odessa, a Ukrainian port, and will discharge existing cargo in Korfez and Port Said. Shipping to and from Russia is also “currently unavailable.”
- CMA CGM also suspended bookings and service to Odessa, redirecting cargo to Romania, Lebanon and Greece.
- Three merchant vessels (a private charter, a chemical tanker, and Japanese ship) were shelled transiting the Black Sea causing maritime insurers to refuse or increase risk coverage for commercial shipping.
AIRFREIGHT
- FedEx and UPS have suspended international operations in Russia and Ukraine.
- European Union has closed air space to Russian aircraft.
- Air cargo capacity has been reduced and rates are increasing.
- Elevated fuel prices increasing transportation costs.
- The Antonov AN-225, the world’s largest cargo plane, was critically damaged in Ukraine.
DOMESTIC
- Rail transportation services, cost and capacity from China into Europe will be impacted.
- Major manufacturers have ceased working operations in Ukraine for the safety of workers.
- Supply chains requiring precious metals for electronics manufacturing, such as semiconductors, may experience additional shortages.
- Netherlands Customs authorities have stopped accepting containers destined for Russia.
U.S. shippers should begin to evaluate contingency measures for sourcing, transportation, and logistics operations. Green will continue to monitor the situation as it develops.
Contact Green Worldwide Shipping to speak with our supply chain experts at greenworldwide.com
