"The maritime industry has undergone a new change in recent months as a result of the war between Ukraine and Russia. This situation has caused the European economy to plunge into an inflationary spiral which experts expect to stabilize in a year and a half."
The maritime industry has undergone a new change in recent months as a result of the war between Ukraine and Russia. This situation has caused the European economy to plunge into an inflationary spiral which experts expect to stabilize in a year and a half. Faced with this dramatic reality, the maritime sector is organizing changes and alternatives to alleviate logistics problems in Europe and the world in general.
Many companies have suspended ship calls in the area
This war situation, which is affecting the entire European continent in particular, has a special impact on the maritime sector. In particular, there are port areas in Europe that are being greatly affected by the conflict, especially those in neighboring countries. Currently, one of Ukraine’s most important ports, Mykolaiv, is closed because the world’s major shipping lines have suspended their calls on this route. They want to avoid putting the goods at risk following Russian threats to take control.
On the other hand, political and economic instability throughout Europe has made navigating certain areas dangerous. As a result, many insurers have increased the cost of cargo insurance and some of them have even decided not to insure shipping lines transiting Ukrainian and Russian waters.
Increase in freight costs
The main consequence that has emerged in Europe following the Russian invasion of Ukraine has been the further increase in freight costs. It is estimated that, in just two months, they have grown to be 30 to 40% more expensive to transport by sea. This increase is linked to Russia’s cut-off of fuel supplies to Europe, the lack of crew personnel, and the instability across the continent.
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