Freight operators look for routes around Ukraine, Russia

Freight forwarders including Denmark-based DSV A/S and Germany-based Deutsche Post AG’s DHL Express and freight units suspended services to and from Ukraine, closed offices in the country and forced workers to concentrate on their families. asked for.

Forwarding officials said most services in and around Russia were still operating, but could be overcome by last-minute disruptions as diplomatic tensions between Russia and Western countries intensified and sanctions imposed by Western companies. to examine your shipments more closely.

Airfreight in the region is coming under pressure as planes avoid flying closer to Ukraine and worsening diplomatic tensions between Russia and the West. In response to a British ban on regular flights from Russia a day earlier, Russia on Friday banned UK-registered airlines from operating in its airspace.

French logistics operator Geodis said on Friday it expects further airspace closures or airline-specific restrictions that could lead to delays, capacity reductions and rate increases.

Glenn Koepke, general manager of network cooperation at FourKites Inc., a Chicago-based freight-tracking technology supplier, said the war would lead to a sharp increase in shipping rates, particularly between Asia and Europe, as conflict disrupts the movement of goods by sea and air. Is. and land.

Forekites said the volume of cargo that moves from China to the EU via Russia could be transferred by sea or air if that growing freight connection is disrupted, potentially affecting those transportation markets. rates increase. In the first six months of last year, more than 300,000 containers, measured in 20-foot equivalent units, were transferred by rail from China to the European Union, the company said.

US-based Flexport Inc said on Friday it has stopped accepting Trans-Siberian Rail bookings and is offering air and ocean options instead. Flexport chief executive Ryan Peterson said the firm is doing so mostly out of concern that customers could lose cargo if service is disrupted.

London-based Drury Shipping Consultants Ltd said on Friday that although the initial impact on global shipping is small, geopolitical tensions could exacerbate global economic instability and send rising fuel costs and inflation still higher.

Air cargo is also getting delayed due to the conflict. Flexport’s two 747 cargo carriers that typically fly over Russian and Ukrainian airspace between Asia and Europe are now a long way over the Middle East, the company said.

Mr Peterson said, “We are monitoring the situation closely, including the evolving sanctions environment imposed by the US and other governments, to see if additional logistical, security and compliance changes are needed in our operations. may be required.”

This story has been published without modification to the text from a wire agency feed