From 0:00 on the 24th local time, Ukraine will implement a 30-day state of emergency. In addition, Ukraine’s State Border Service said it had imposed restrictions on Ukraine and Russia, Belarus, the territory and coastal areas of the Donbass, including a ban on any ships leaving the port.

 

On the 24th local time, Russian President Vladimir Putin said in an emergency televised speech that he had decided to conduct a special military operation in the Donbas region of eastern Ukraine. Putin said that Russia has no plans to “aggress” Ukraine and that Russia is committed to de-escalating the situation in Ukraine. In view of the continuous eastward expansion of NATO and the deteriorating security environment in Russia, Russia had no choice but to make this decision.

 

On the 24th local time, Ukrainian President Volodymyr Zelensky said that the entire territory of Ukraine has entered a state of war, and the Ukrainian administration announced the closure of the entire airspace. According to the Ukrainian General Staff, the Russian armed forces launched missile attacks on airports in several Ukrainian cities, including Boryspil, Chuguyev, Kramatorsk, and other cities.

 

On the 24th local time, a reporter from the National Public Radio (NPR) heard the explosion in the port city of Odesa in southern Ukraine. Odesa is located on the northwest coast of the Black Sea. It is an important material distribution center and an important trade port in Ukraine. As the largest port city in Ukraine, most of the country’s maritime foreign trade is conducted through Odesa.

 

So what are the effects of the war between Russia and Ukraine on shipping:

The war between Russia and Ukraine may lead to sharp fluctuations in dry bulk shipping rates. In the past few years, Russia and Ukraine have become important exporters of bulk raw materials. Every month, more than 700 bulk carriers go to the ports of Russia and Ukraine to carry cargo. The outbreak of war will affect the export of bulk cargo.

Taking wheat as an example, the data compiled by the visual data analysis platform OEC shows that in 2019, Russia was the world’s largest exporter of wheat, accounting for more than 18% of the world’s total exports, and Ukraine, the fifth largest exporter, accounted for more than 7%. %, which together contribute more than a quarter of global wheat exports.

 

The wheat from Russia and Ukraine is mainly exported to Egypt, Turkey, Bangladesh, and some Middle Eastern countries. Among Asian countries, Indonesia, the Philippines, Thailand, South Korea, and other countries also import wheat from Ukraine. Because of its geographical location, these trades are mainly realized through the Black Sea, which is also the area where major countries conduct military exercises. In the event of a military conflict or more trade sanctions, trade at ports near the Black Sea may also be disrupted, affecting the prices of these related commodities.

 

The container shipping industry appears to be less affected by the Russia-Ukraine crisis than the dry bulk shipping industry. But some experts believe that there are still significant risks ahead, which may prolong the congestion time of container ships and keep freight rates high for longer.

 

The war between Russia and Ukraine has caused the grain to be imported from South America, and the voyage has been greatly lengthened, and the increase in sea freight will be higher.

 

Freight rates for some size categories of dry bulk and tanker shipments are likely to rise, and war-induced trade disruptions will force substitute imports to travel longer distances, requiring more ship supplies.

 

Of course, judging from the current war process, Russia has occupied many important cities and facilities in Ukraine. It is believed that the war will end soon, and the port congestion will be prolonged by then, which will inevitably lead to the freight rate remaining at a historically high level for a longer time.

 

I hope that this war will not cause too many casualties to Ukraine, many of Bestforworld’s customers have taken refuge in empty bunkers.

 

At the same time, Bestforworld has a batch of goods sent from Ukraine to China should also be due to the outbreak of war and could not be delivered on time. We hope the goods will not be concentrated by artillery shells.

 

At present, Bestforworld has completely stopped the booking of cargo from China, India, Pakistan, Malaysia, Thailand, and the Philippines to Ukraine last Friday.

 

Shipments from China to Russia are currently proceeding normally, and bookings are still open at St. Peter Vladivostok and other Russian ports.

 

The goods that have sailed so far can only pray for their safety.

 

Contact Bestforworld for the best sea freight for shipping from China to Ukraine and Russia.