Sea freight traveling near Russian ports has fallen significantly since global sanctions were imposed on the country in late February, and further disruptions to shipping schedules are expected to slow global supply lines in the coming months, a report says. from logistics software provider project44, released today. The company has tracked a 54% drop in maritime traffic within 50 nautical miles of Russian ports between February 1 and March 4, resulting from the suspension of bookings to Russia as the invasion of Ukraine by the country intensifies. Since March 1, shipping carriers MSC and Maersk have suspended all cargo bookings to and from Russia, including all access areas near the Baltic Sea, Black Sea and Russian Far East. French shipping giant CMA CGM, German shipping companies Hapag-Lloyd and Hamburg Sud, as well as some other major carriers, have since also suspended bookings in the region. “As major carriers suspend services to Russia, we will see additional disruptions to global shipping schedules
in the coming months, causing additional global delays,” Adam Compain, senior vice president of information, said Monday. on the data for project44. There has also been a sharp drop in sea freight arriving at Russian ports; The maximum daily volume of TEU (twenty-foot equivalent) vessels fell by more than 40% between February 1 and March 3, according to the report, which is based on data from the company Supply chain crisis monitoring.
Logistics industry professionals agree that the situation will have immediate and long-term effects on supply chains, including reducing capacity and driving up energy prices. “The supply chain as we know it has been strained for two or three years. Now the ability to enter and leave Eastern Europe is cut off,” said Bill Thayer, co-founder and CEO of the logistics-as-a-service platform. Filological. “The supply chain problem has always been about capacity and lack of capacity – and now more and more capacity is being taken out of the network.”
Oil prices continue to rise, fueling fears of increased inflation and an even higher cost to ship goods. The Logistics Manager’s Index recorded a steady increase transport prices over the past year and a half, and researchers said last week that they expected continued upward pressure on prices in light of problems stemming from the crisis in Eastern Europe. ‘Is. “Beyond the truly tragic loss of life, a number of costs extend from this conflict, many of which will have a direct effect on global supply chains,” the LMI researchers said in their report. February, released March 1. the apparent change has been the fuel price shock… As sanctions pile up against Russia, prices could continue to rise, potentially driving up transportation costs and inventory.