Although we cannot compare any of the impact from the invasion of Ukraine on an equal level to that of the people of Ukraine, the conflict which started by a Russian invasion does and will have an impact on our everyday lives.
Sanctions given to Russia for the invasion of Ukraine
With sanctions on Russia, it has created new challenges for shippers and manufacturers, particular for goods from China to Europe. Usually, goods destined for Europe from China could be freight that transits through Russia by rail as the vast land mass covers both continents of Asia and Europe. As the conflict continues, sea freight rates increase and so the cost of transportation has an impact and is usually widespread.
Russia has a number of global exports that may now be subject to sanctions and even if they did attempt to deliver, could be subject to sanctions on arrival at ports. Ukraine has Black Sea ports that would no longer be safe to use and so any shipments would need to be reassigned to an alternative destination by the carrier.
Speed of impact
It has only been one month since the Ukraine war commenced but it is already having a significant impact on international trade which is going beyond the two nations of Ukraine and Russia.
ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says:
”’Putin’s War’ as it is being called in Europe, will certainly harm both Russia and the Ukraine economically, but its impact is also already being felt by UK businesses.
“Ukraine is an important air corridor for European air traffic and re-routings will lead to a – hopefully short-term – loss in capacity.”
“Shipments of goods by sea are also being impacted. There are no services into Ukraine’s key port, Odessa, and Ukraine says two foreign-owned commercial ships have been shelled there by Russian forces. Surface shipments are being re-routed via Romania, Lebanon and Greece.”
Ukraine, HGV drivers return home to fight
Although it is not yet established how much of an impact the absence of Ukrainian HGV drivers, leaving to fight in Ukraine and so giving up work both in the UK and Europe will have, it is something that adds to the impact. Particularly if we already have shortage of drivers, this will not help reduce the driver shortage numbers which the current government has been attempting to reduce.
Supply chains and costs
Maersk, which is a well known and established shipping and logistics groups, says:
“The invasion of Ukraine is hurting global supply chains and pushing up costs as transport routes are scrapped, fuel prices soar and some carriers impose ‘war risk surcharges’.”
At the moment, the war which has been going for a month, has created a ripple but if it continues and even after the end, whenever that will be, it is likely to have much broader knock-on effects from the crisis for the haulage industry, which is a warning given by pan-European air freight road feeder services (RFS) provider Wallenborn Transports.
The UK consumer
Before the conflict, consumers in the UK were bracing themselves for a further rise in the cost of living with the increase of energy supply charges, added to the already increased petrol price rises and further expecting the government to increase National Insurance. As the focus has switched from personal hardships, many have braced themselves for a drop in the standards of living but still found time and energy to do what they can to help those in Ukraine who have a far worse crisis to manage. We hope, for all, the conflict can be resolved sooner rather than later and not escalate beyond the nations involved.
If you are interested in helping or give support to Ukraine, you may find our recent Humanitarian Logistics post useful.