Ukraine: Supply Chain Update 11.03.22

Mar 11, 2022 | Article, News, Ukraine

Following on from our earlier story, the war in Ukraine continues to place increasing strain on supply chains across the world.

A mutual aircraft ban between Russia and a number of countries – including the UK – is resulting in higher prices and journey times. Of particular concern are export rates to China. These have doubled in recent days, mainly due to reduced capacity, as airlines struggle to avoid restricted airspace due to the conflict.

Carriers have also begun to increase their fuel surcharges, either as a separate fee or built-in to their overall rates.

Elsewhere, the list of sanctions continues to grow. Last week, the UK Government announced a total ban on all ships with a connection to Russia docking anywhere in the country.

At the time of writing, a number of countries – including the US, the UK and all nations within the EU – have moved to ban imports of Russian oil. Russia has threatened to retaliate by cutting off gas supplies. We expect a further hike in fuel prices, thereby driving up the costs for carriers, which will in turn be passed on to customers. 

Meanwhile, Reuters have reported that several of the world’s largest shipping lines, such as Maersk, MSC and CMA CGM, have suspended bookings to and from Russia. Uniserve, too, has issued a temporary ban on bookings to/from Russia.

Companies have also begun to withdraw services to and from neighbouring Belarus – a country that has been widely condemned for their part in assisting the invasion of Ukraine.

The Port of Odessa – one of the largest ports in the Black Sea basin – remains closed, putting additional pressure on the global supply chain.

We encourage you to contact your Customer Development Manager on 01375 856060 or email to discuss any concerns.

As ever, our thoughts and prayers remain with the people of Ukraine. For details of how you can support, please visit the DEC’s Humanitarian Appeal here.


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