Logistics, Chains, Shackles and inflationary costs of Transport! What a ride logistics and transport take for the moment. Did it look that the pandemic was at it’s return and light at the tunnel, a war was initiated by Russia against neighboring democratic country, Ukraine. This has driven at first the prices of fuel and oil which are at high levels we havenot seen for a long time.
Logistically, at present, it means that no cargo can reach Ukraine by sea, Russian Black Sea ports are no go areas for most of the ships operated and due to the sanctions, any cargo to or from Russia is a possible issue with the authorities in western countries. The chain of logistics or perhaps better, commodities, is under severe pressure since every shackle is presently under pressure. Fuel prices are volatile, Ukraine & Russia, both exporters of various foodstuff commodities, are hardly exporting which will give upward pressure in demand towards the other producing countries. This will create new logistic challenges, pressure on vessels and ports etc. Few will realize that for instance Romania has export which has to pass the Danube running through Ukraine which is now war risk area. Stock of products from e.g. steelfactories in Ukraine, before they were blown to pieces, is placed in Ukrainian ports. These plants, if still working, need raw materials, like ore and coal to function. The export cargoes now will be moved to Romanian ports. Railway is not an easy option since the different gauges in Ukraine and Romania, so extra handling thus costs. The solution would be to use barges via Izmail and Reni ports which still are functioning. However ports are getting congested with containers which are inbound to Ukraine and now stocked in Romanian ports also. So the disruption in the logistical chain is caused by the individual shackles. There is not an easy solution for it and in order to make sure that your goods are moved, contact specialists who can advise and assist you in your logistical questions. SeaWorks will be glad to answer your questions and be of assistance.
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