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New Routes.

Several freight forwarders have eliminated services to avoid disruptions in Russia and Ukraine.

These disruptions are evolving in Asia and Europe as a result Russia’s invasion.

Forwarding officials say most services around Russia are still operating but the situation could change at any time as diplomatic tensions between Russia and European Union intensify. Further, various sanctions have already been imposed against Russia.

Rail Cargo that moves from China through Russia to the European Union may be shifted to the ocean or air, which has a potential of driving up rates . More than 300,000 TEUs were moved by rail from China to the European Union in the first six months of 2021.

As for Air Freight, Russia has banned airlines flying aircraft registered in the U.K. from operating in its airspace last week in response to a British ban a day earlier on regular flights from Russia.

Further airspace closures may cause delays, restrictions, and reductions in capacity.

Maersk, one of the world’s biggest shipping groups, says the invasion of Ukraine is disrupting global supply chains and pushing up costs as transport routes are limited, fuel prices are soaring, while some carriers have started “war risk surcharges.”

According to Dun & Bradstreet, 374,000 businesses worldwide rely on Russian suppliers and 90% of these businesses are based in the U.S. Additionally, about 241,000 businesses rely on Ukrainian suppliers and 93% are based in the U.S.

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