Mar 01, 2022
Dear Valued Customer,
Following our advisory issued yesterday, the situation continues to develop by the hour.
As speculated, as a countermeasure towards the western world sanctions, Russia has now closed Russian airspace for 36 specific countries, including all 27 EU countries, Canada and UK. This measure was expected but will nonetheless significantly impact flight schedules and, ultimately, the capacity situation.
On the ocean freight side, more carriers have opted for a temporary suspension of all bookings to/from Russia, with Maersk and ONE being the latest to announce the same.
Overall we expect the current situation will trigger an immediate capacity constraint across transport modes, as well as pressure on freight rate levels, including oil price increases.
In the following, we will provide an overview of the current situation within the different transport modes.
We expect a continued increase in port congestion in the East Mediterranean and the Black Sea area as a result of re-routings taking place. From earlier incidents, i.e., Suez Canal incident last year, we have seen that trade lanes are inter-connected, leading to potential ripple effects throughout the network.
This situation comes on top of an already challenged ocean freight market, and we foresee it will lead to delays overall and keep up the pressure on rate levels.
Despite no current actual impact, it is foreseen that Rail freight eventually will be impacted, and delays will come into effect.
We also assess that China will apply a continued push to keep the passage open considering China's investments in the Silk Road, which Rail freight is an important part of.
We encourage you to keep close contact with us for priority shipments, allowing constant dialogue on potential alternative routing options.
We are monitoring the situation closely and will communicate pro-actively on potential further steps impacting our ability to service shipments to, from, and via Russia.
All information is given to the best of our knowledge and is prone to change.
Global COO & CCOEmail me