Ukrainian Russian conflict subverts the global shipping industry, and the shipping rate may rise by two to three times

The war between the Ukrainian and Russian countries could subvert the global shipping industry, which is recovering from the new crown pneumonia epidemic. As the sanctions began to have an impact on trade, the largest shipping container groups Maersk (amkby. US) and Mediterranean Shipping have suspended business reservations to and from Russia.

On the one hand, strict cargo inspection has caused great trouble to the cargo shipper. The relevant inspection needs to ensure that the shipper has not violated the sanctions of the EU and the UK. In addition, the company also stopped operation due to the uncertainty of safety in relevant waters. For example, a ship carrying crude oil or liquefied natural gas may be sanctioned a few days after departure, which will cause the goods to stay at sea and the company has to bear the cost. Glenn koepke of fourkites, a supply chain consultancy, said that shipping rates could even double or triple from the current price of $10000 per 40 foot container.

On the other hand, with the closure of airspace, the situation will get worse. Air transportation is a key freight alternative to sea transportation. As the EU, Canada and the United States have closed their airspace to Russian Airlines, this will prompt Russia to take retaliatory measures. For a long time, Japan has been playing an important role in the air transportation business from Asia to Europe and the Americas, but some Japanese airlines have completely stopped their freight routes to Europe. At the same time, the sanctions also affected the operation of the Siberian Railway, which is a channel for Chinese goods to Europe through Russia.

In addition, according to the International Chamber of shipping, Russian and Ukrainian seafarers account for one seventh of the global shipping workforce. These important staff are not easy to replace, and the flight ban makes it more difficult for relevant personnel to travel to and from the port. It is understood that the Black Sea is an important commodity export route, but since the Ukrainian Russian war, the ships on this route have also been suspended.