Russia’s connections to global trade routes are disappearing as shipping companies halt services and a tit-for-tat battle over sanctions pares back operations.
Several of the world’s largest freight forwarders suspended service in and out of Russia this week, and some extended their new bars to Moscow ally Belarus as Russia pressed its attacks on Ukraine. Digital cargo marketplace Freightos says the disruptions in ocean and air freight services, along with rising oil prices, threaten to pump up shipping costs still further around the world. The showdown over sanctions is buffeting the aviation industry, the WSJ’s Emma Brown reports, slashing airfreight capacity and raising costs as airlines take longer routes to avoid Russian airspace. Rerouting around Russia is costly, adding about 700 nautical miles and two hours’ time for a flight from Frankfurt to Beijing, limiting room for freight. Freightos notes the European bar against Russian airlines removes Russian freighter operator AirBridgeCargo from the European market.
Here are other developments following Russia’s invasion of Ukraine:
Russia deepened its military offensive in southern Ukraine, causing a fire at a nuclear power plant, penetrating one city and sending warships near the port city of Odessa. (WSJ)
The U.S. imposed new export controls aimed at Russia’s oil and gas industry. (WSJ)
A giant Ukrainian steel mill owned by ArcelorMittal shut down. (WSJ)
Alcoa will stop selling raw materials to Russian aluminum businesses and end purchases of materials from the country. (WSJ)
Michelin will halt production at some European factories because the war has disrupted the flow of supplies. (WSJ)
Wheat prices in Chicago are rising to near-record levels. (WSJ)
An engineer was killed in an attack in the Black Sea on a Bangladesh-owned bulk ship. (TradeWinds)
Russia’s AirBridgeCargo began offering its freighter fleet for ad hoc charters after numerous Western countries barred the carrier from their airspace. (The Loadstar)