Shipping Set To Be Hit By War, Europe A Problem
The War in Ukraine is already disrupting shipping, with cargo bound for Australian retailers set to be impacted, claim leading shipping Companies.
The world’s biggest container ship operators—A.P. Moller-Maersk A/S and Mediterranean Shipping Co.—said they would temporarily suspend services through some European and Baltic ports in light of the sanctions on Russia.
Shipping out of Europe is tipped to be impacted, which in itself is limiting, as most shipments to Australian CE retailers come from Asia.
Several European appliance brands have not said what impact the war between Russia and Ukraine will have on shipments out of European ports.
Maersk said last night it was halting bookings in light of the sanctions imposed on Russia, including congestion being caused by customs authorities inspecting cargo bound for the country and changing credit terms impacting its customers.
The Wall Street Journal claims that hundreds of vessels are trapped at ports, with cargo being derailed and freight rates surging.
The impact is most severe in the Black Sea, where some commercial ships are being fired upon or detained, but it is also being felt far from the conflict zone, according to shipping executives and brokers.
The disruptions are adding strains to a global supply chain already stressed from two years of pandemic imbalances.
On Monday, the U.K. banned entry to all Russian vessels to its ports. Shipping executives and port officials in Belgium, the Netherlands and Germany said containerized cargo destined for Russia would be stopped and inspected.
“All those hubs in Northern Europe are already pretty congested, and every little thing that delays cargo flows will intensify the problem,” said Vincent Clerc, head of ocean and logistics services at Maersk.
Ships are also getting rerouted by governments.
ChannelNews understands that Russian-owned boats will also be banned from entering Australian ports.