Recap: Container Logistics Implications of War in Ukraine
Thursday, March 3, 2022
The following is a recap of the containershipping logistics challenges for the the Black Sea, Ukraine and Russia from Christian Roeloffs, co-founder and CEO, Container xChange
Parts of the Black Sea and Sea of Azov are now dangerous or unpassable. There have been missile attacks on vessels and ship arrests and lane closures for commercial shipping. The Ukrainian seaports of Odessa and Mariupol are closed/damaged/under attack. Trade and container movements have ceased. Cargo and equipment are stuck at ports.
Maersk has pulled out booking shipments to and from any Russian ports (with exception of foodstuffs, medical and humanitarian supplies) and other carriers have started following.
Russian and Belarussian ports in the Baltic and Black Sea will likely see a build-up of boxes if carriers refuse to make port calls due to the security situation and sanctions.
Maritime trade with Russia and Russian businesses could be very difficult in the months and even years to come. On Monday, the UK banned all Russian ships from entering its ports. There has been at least one ship arrest by the EU.
On the Asia-Europe trade we could see more demand for maritime shipments and equipment out of Asia due to modal shift. For example, the Asia-Europe rail and road routes through Russia and Belarus are reportedly closed and/or being used by militaries. Borders with the EU are closed. The closure of air space across Russia and Europe has also reduced air freight capacity.
We expect this awful war to add to the stretched nature of global container supply chains, bringing yet more inflation, disruption and delays.
Overall, the situation for container availability is likely to worsen, but this will vary by port and region. Central and Northern Europe is already congested, and any further trigger to the cargo flow will only worsen the state of container pileups.