Shipping
WORLD'S LARGEST CONTAINER LINES HALT SHIPPING TO/FROM RUSSIA AMID UKRAINE CONFLICT
March 1, 2022
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The world's top three biggest ocean carriers have moved to temporarily halt operations to and from Russia amid sanctions implemented by Western countries following Moscow's invasion of its neighbour, Ukraine.  

 

MSC, the world's biggest container shipping company in terms of capacity, said it had introduced temporary halts to bookings to/from Russia.

"MSC Mediterranean Shipping Company is introducing as of 1 March, with immediate effect, a temporary stoppage on all cargo bookings to/from Russia, covering all access areas including Baltics, Black Sea and Far East Russia," the Swiss-headquartered shipping line said in a customer advisory on March 1.

 

MSC, added, however, that it will continue to accept and screen bookings for delivery of essential goods such as food, medical equipment and humanitarian goods.

 

"MSC has been closely monitoring the advice from governments about new sanctions, following the February 2022 conflict in Ukraine, and has been operating shipping and inland services to and from Russia in full compliance with international sanctions measures, applicable to it," it said. 

 

Danish shipping giant, Maersk, said separately that it would also temporarily suspend all container shipping to and from Russia.

 

The world's second biggest carrier added that the halt covering all Russian ports, would not include foodstuffs, medical and humanitarian supplies.

 

Impact on global supply chain

 

"At Maersk, we are deeply concerned by how the crisis keeps escalating in Ukraine. We are closely following the ever-evolving situation with governments posing new sanctions against Russia and the regular adjustments that are being made to the list of restrictions. With that in mind, we now see the clear need to establish new and revise existing processes of accepting and handling bookings," Maersk said on the same day.

 

"As the stability and safety of our operations is already being directly and indirectly impacted by sanctions, new Maersk bookings within ocean, air and intercontinental rail to and from Russia will be temporarily suspended, with the exception of foodstuffs, medical and humanitarian supplies (bar dual-use items)," it added.

 

Maersk said this exception is to underline the company's focusing on social responsibility and making the efforts to support society despite all the complications and uncertainties within the current supply chain to/from Russia. 

 

"The suspension will begin today and cover all Russian gateway ports. We will announce further details during today and the coming days as we progress with the planning," Maersk said in its own advisory, adding that the line will "still call Russia although we will not accept new bookings unless they belong in the exception categories mentioned above."

 

Maersk warned that the Russia-Ukraine conflict is already impacting the global supply chain.

 

"We are starting to see the effect on global supply chain flows such as delays and detention of cargo by customs authorities across various transshipment hubs – overall resulting in unpredictable operational impacts," the carrier said, warning its customers to expect "significant delays as countries such as the Netherlands, Belgium and Germany are holding back vessels en route to Russia in search of restricted commodities, primarily dual-use items."

 

"The delays are expected to have ripple effects across the regional ocean network, resulting in further delays and congestion."

 

Maersk said in full compliance with legal regulations and its policies, it also "cannot receive from or make payments to any sanctioned Russian banks, or any other sanctioned party."

 

CMA CGM halts Russia bookings

 

French container transportation and shipping company, CMA CGM also made the same announcement of temporary suspension of operations to and from Russia until further notice citing safety concerns.

 

"In the interest of safety, the Group has decided to suspend all bookings to and from Russia as of today and until further notice," the world's third biggest container line said on Tuesday.

 

"We have raised our alert levels and took preventive measures to protect our IT systems as well as your personal and company data," it added.

 

The announcement by the top liners came as some carriers like Singapore's Ocean Network Express (ONE) and Germany's Hapag-Lloyd ⁠— both among the world's top five biggest ocean carriers ⁠— already earlier implemented measures effectively cutting Russia off from its services.

 

Russia earlier tagged the assault as a "special operation" which has since saw many countries in the West impose various kinds of sanctions to the country. 

 

This new announcement is expected to be another blow to Russia's trade.