Russia-Ukraine Conflict: 4 Ways it is Impacting Ocean Supply Chain
The invasion of Ukraine by Russian troops has led to multiple fast-changing developments in global ocean supply chains that are still reeling from the ongoing pandemic. Stakeholders are bracing for the potential impacts of this conflict on shipments, freight rates, and additional logistics capacity constraints.
Presently, all Ukrainian seaports have been closed and multiple major ocean carriers have announced the cancellation of port calls to Russia and Ukraine. The Ukrainian port of Kherson, a strategic black seaport, has fallen to Russian forces, and Russian vessels are being blocked by major European ports.
Here are four ways this conflict is already impacting global ocean supply chains.
Vessel routing constraints
The clash in Ukraine, the second-largest country by area in Europe, has caused container and bulk carrier vessels to be rerouted, increasing concerns over additional supply chain disruptions. With the ports in Ukraine closed, passage through ports in Ukraine has become impossible and major container lines are rerouting their black sea service to adapt to the imposition of sanctions on Russia. Ocean carrier, CMA CGM has suspended port calls to Ukraine until further notice.
Port congestion and delays
Global port congestion and delays have been further exacerbated by the invasion of Ukraine. Vessels have been skipping port calls through Ukraine, Russia, and neighboring ports due to dangerous conditions of vessels coming under artillery fire. Last week, an Estonian-owned cargo ship sunk off Ukraine's Black Sea port of Odesa after an explosion (Image 1). Within that same week, a Bangladeshi vessel was also hit by another missile. Due to the increasing number of vessels docking at rerouted ports, delays and dwell times have drastically increased at European ports since the invasion. Data from Seavantage's Port Insight platform (Image 2) shows a steep decline in the number of anchored vessels at the port of Odesa.
Reduction in ocean shipments
Global ocean ships connected to Russia and Ukraine have dropped since the invasion. Major ocean container ship operators, MAERSK, MSC, ONE have announced the temporary suspension of their services to Russian ports including ports nearby Ukraine. The government of the UK has banned the entry of all incoming Russian vessels to its ports after the implementation of sanctions in Russia. The suspension of operations has caused a reduction in cargo transport throughout Europe.
Surging freight rates
Shortly after the invasion, ocean freights rates have been skyrocketing, passing record highs. Freight rates have been increasing due to the rerouting of vessels, increasing fuel costs, and some carriers adding “war risk charges”.
Gaining visibility in your ocean supply chain
The threat of disruptions to global supply chains from this conflict makes proactively managing these disruptions imperative. With our visibility platform, you can track cargo with predicted ETAs, gain insight into ports and terminals, and be the best prepared.
SeaVantage offers real-time tracking and visibility solutions for freight forwarders, carriers, cargo owners, and terminal/port operators. Our proprietary AI Maritime Traffic Network provides a more informed prediction of vessel or container arrival time for all stakeholders in the supply chain by bringing in additional data streams.
Email: sales@seavantage.com
Tel: (+82) 02-3444-7302 / (+82) 02-3444-7303
씨벤티지에서는 보다 나은 사용자 경험을 위하여 매주 정기 업데이트를 진행하고 있으며, 사용자 피드백을 적극적으로 반영하려고 노력하고 있습니다. 아래 업데이트 소식을 참고하시어 더욱 확장된 서비스와 기능을 사용해보세요!
수출입 비즈니스와 관련이 있다면 ‘선박 추적’에 대해 들어보셨거나 직접 조회해 본 경험이 있으실 것입니다. 선박 위치 추적을 통해 내 화물 또는 고객의 화물이 지금 바다 위 어디쯤 있는지, 어느 경로로 가며, 어디에 경유하는지 등의 정보를 통해 결과적으로 화물이 언제 도착하는지 알기 원합니다. 또한, 해상 운송에서 빈번하게 발생하는 화물 지연과 변수 상황을 사전에 파악하고 물류계획에 차질이 없도록 대비하기 위함도 있을 것입니다.
지난 2023년 3월, 덴마크 선사 MAERSK는 우크라이나 해운 서비스를 재개했습니다. 지난 한 해 오데사 항구의 현황은 어땠을까요? 씨벤티지 Port Insight를 통해 알아보도록 하겠습니다.
2022 was another tumultuous year for the ocean shipping industry. The combination of numerous disruptions ranging from geopolitical conflicts, Covid-19 lockdowns, industrial labor strikes, inflationary pressures, and extreme weather events gravely impacted ports worldwide and global supply chains.
The Ukraine crisis and the COVID-19 pandemic impacted global supply chains significantly in 2022, highlighting the importance of being prepared for unexpected disruptions and the need for agility and flexibility in managing these challenges. The Russia/Ukraine war disrupted trade and transportation routes, resulting in delays and increased costs for businesses that rely on imports and exports between the two countries. The ports of Mariupol and Odesa, key transit points for goods in Ukraine were disrupted and had to shut down by the conflict.
Despite the fact that almost everyone has a GPS tracking device in their pocket, tracking the location and status of vessels and containers continue to be one of the top challenges facing freight forwarders in the shipping industry.
