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Ukraine Invasion Causing Supply Chain Chaos

One of the world’s biggest shipping company, Maersk, has told its customers the invasion of Ukraine is impacting global supply chains.

The Danish company has been forced to bypass various transport routes, stopping ocean and air freight to Russia and Ukraine, and suspending rail deliveries between Asia and Europe.

Fuel prices have soared, and airspace restrictions are hampering deliveries. Many carriers are also enacting war surcharges.

“Customs authorities in the European Union are now inspecting all units to/from Russia transiting their terminals/ports to identify sanctioned and restricted shipments,” Maersk told its customers.

“This is a direct consequence of the sanctions, but there are also indirect impacts as all cargo is getting delayed and our transhipment hubs are getting congested, impacting our customers’ supply chains.

“This is a global impact, not limited to trade with Russia.”

Shipping Australia tells the AFR that 16 per cent of containers shipped to and from Australia “are Europe-related.”

“Cargoes that are already en route [to Russia and Ukraine] appear to be getting diverted to ports in non-belligerent nations and may possibly be trucked overland,” Shipping Australia said, noting that many Ukrainian seafarers “have expressed a wish to end their contracts early so that they can go home and fight”, reducing the workforce.

Russian and Ukrainian’s workers make up 14.5 per cent of seafarers.

 



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