While we hope and pray for a swift resolution to the current conflict in Ukraine, we are closely monitoring the evolving situation and evaluating the wider supply chain impact of the sanctions and restrictions that are being imposed on the Russian regime.

With ‘Force Majeure’ being called by insurers, carriers and other operators, we strongly recommend the suspension of all shipments into or out of the region.

We highlight below the most significant developments:

  • Maersk, MSC, and CMA CGM have joined Hapag-Lloyd and Ocean Network Express (ONE) in suspending bookings for Russian cargo.
  • JAL and ANA have cancelled all flights to/from Europe, while Russian cargo carriers have withdrawn from the market and the avoidance of Russian air space will disrupt operations – all of which effectively reduces capacity – with a direct impact on rates.
  • Rail from/to China is impacted – where it transits Russia/ Ukraine – and is either not functioning, or cargo is not being accepted.
  • Carriers and many other foreign operators have closed all Ukrainian offices and warehouses.
    UK government is asking ports to reject Russia-bound cargo and Russian flagged, registered or controlled vessels.
  • We are seeing delays and detention of cargo by overseas customs authorities seeking Russian and prohibited cargo.
  • Fuel prices are increasing dramatically and we are anticipating emergency fuel surcharges will be applied on all modes.
  • DfT advise that further sanctions targeting Russian shipping are being developed and we will update you further, as to the impact of these changes.

To summarise. Avoid Russia, Ukraine and conflicted region, and expect the impact of sanctions, restrictions and prohibitions to ripple out geographically, and across all transport modes.

We will be monitoring the evolving situation closely and will keep you informed of the most important developments. Please don’t hesitate to contact my team, or me directly, if you have particular concerns, or simply want to review potential ramifications for your business.