INTERNATIONAL LOGISTICS IN THE CONTEXT OF THE WAR IN UKRAINE

The recent sanctions applied by the European Union, the United Kingdom, the United States and Canada against Russia are causing a number of disruptions around the world, particularly in the global supply chain.

Direct impact on the air freight

The closure of European airspace to Russian airlines, and the similar application of the ban to 35 European countries and Canada by Russia, have a direct impact on air cargo traffic. European airlines have revised their flight plans to the Far East due to the need to bypass Russian airspace.

The new air corridors (Polar Route or Southern Route) will result in longer flight times.

This will result in longer transit times and higher operating costs with increased fuel consumption and a considerably higher oil price, not to mention the addition of "war risk" charges.

Shipping industry disrupted again in the midst of global congestion

Many shipowners such as MSC, Maersk, Hapag Lloyd, ONE and CMA CGM have suspended their calls in Ukraine, redirecting their ships to ports in neighboring countries.

Russia is also the subject of suspensions of calls by many shipping companies, except for food, humanitarian and medical.

This situation leads to a disorganization in the maritime rotations that may increase the time of delivery and, therefore, the delays and accentuate a global port congestion.

Additional costs for road and rail traffic

Some major export operators have stopped for now eastbound and westbound intercontinental rail bookings between Asia and Europe.

However, for the time being, land traffic is little affected by the situation on the Asia-Europe route.

It should be noted that many insurers have suspended their guarantees due to the uncertainty of the conflict on the Russian, Belarusian and Ukrainian territories.

 

Our teams are closely following the evolution of the situation and remain at your disposal to provide you with information, support, advice and solutions for your international projects.