Logistics Challenges Continue Due to Russia-Ukraine Conflict

As the Russia-Ukraine conflict continues, our industry is keeping close tabs on the logistics situation, especially in light of the various government sanctions going into effect.

For example, as of yesterday, ocean carrier MSC announced that bookings to/from Russia have been temporarily halted which includes access to all areas around the Black Sea, Baltics, and Far East Russia. Bookings for essential goods such as food, humanitarian items and medical equipment are the only exceptions to this action. It is expected that other carriers will follow suit. This announcement comes after the US, European Union and UK blocked Russian banks from using the SWIFT international payment system. Additionally, on Monday, the US Department of the Treasury barred Americans from doing business with Russia’s central bank, immobilizing assets of this bank that are being held in the US or by US people. As a result, Russia’s economy is now experiencing an extreme downturn, with the value of the ruble dropping to less than one cent per dollar.

For those of you with regular shipments to/from Russia, please review all current conditions, keeping in mind that transportation to/from the region is becoming extremely limited.

We will continue to monitor this situation and provide updates.