How is the war in Ukraine transforming European logistics and affecting prices?
In the past few years, the world has faced one of the greatest challenges in modern history. A challenge so unusual, it has affected all of us and essentially paralyzed the whole world. Not long after the Covid–19 pandemic had passed, the world started to get back to normal, but then another strike came. The Russian–Ukranian war affects almost every aspect of our lives, transport and logistics included.
Since the war started, basically all European countries felt its presence in their daily lives. The consequences that even the common Europeans suffer the most from are the rising prices, and it is the same with companies. For example, in the first 6 months of the war, gas prices had risen by 120–130%, and that naturally led to higher prices for shipping. Furthermore, this is not the only obstacle that logistics faces.
Source: www.playmaker-freight.com
The logistics change
Many routes that used to be crucial for freight shipping are broken or too dangerous for international traders to use, and we are not talking only about on–ground shipments. Some aircraft deliveries are in fact impossible because the airspace above Ukraine is closed so as not to impose danger for civilians. Also, the airspace above Russia and Belarus is closed (not entirely) for aircraft of countries that sanction them. This means even more pressure and urges on the on–ground transport.
Not only is airspace transportation in shortage, but ocean transport is also in the same situation. Several ports have been closed due to the war or the ships had to be rerouted to avoid all the dangerous areas. Now ships with sea containers often must take a longer route that costs more not only because of the more expensive fuels but also because it is causing a lack of available shipping containers.
What effect do EU sanctions against Russia have?
Shortly after the conflict between Russia and Ukraine started, countries within the European Union agreed to impose multiple economic sanctions on Russia for attacking Ukraine. Those sanctions include closing European airspace for Russian aircraft, banning Russian vessels from European ports and transport operators, and a ban on exports of goods and technology in the aviation, maritime, and space sectors.
Even though all these sanctions were designed to undermine the Russian economy and lead to its incapability to continue in the war, it in fact made an impact on everyone. The rising cost of logistics of the transport containers impacted the price of the goods inside. Therefore, the European Union put measures that are supposed to regulate these skyrocketing prices in place. The measures support traffic flow and supply chains and the EU plans to help the transport companies even more in the future in case the war continues.
Plan your logistics wisely
To save more money and ship containers in the most efficient way, you must plan your logistics carefully. Use applications such as EasyCargo and let us help you get your logistics under control. With the EasyCargo application, you can load your trucks easily and your resources won’t be wasted.
