Ukraine – International Logistics To Be Impacted

While we are only a few days into the conflict in Ukraine, it has become apparent that there will be some disruption to international logistics, which not only affects the country itself.

Fuel prices are starting to reach new heights, which has already impacted petrol forecourts in the UK. We have been receiving updates from hauliers in the UK that fuel surcharges will be increasing, pretty much with immediate effect. Higher fuel prices are also likely to impact rates or fuel surcharges on ocean freight, air freight and road freight.

Ocean freight to and from Ukraine has effectively stopped, following the suspension of shipping in the Sea of Azov, which is being blockaded by Russian navy ships. Road freight is severely impacted, if not impossible, due to border controls and the ongoing conflict.

Ukrainian airspace is closed by the Civil Aviation Authority and Russia has banned many country’s airlines from using it s airspace, which may have some impact on air freight movements to and from the Far East.

Rail movements to and from China will undoubtedly be affected, perhaps even suspended altogether, as Ukraine is on most rail routes.

There may be further disruption to logistics as the situation continues, the above is just a summary of our early observations and we will continue to monitor closely.