The war in Ukraine has changed countless lives. It is one of the great tragedies of our time. Also, in general, it will continue to make a lot of things difficult for the rest of the world. There are a lot of consequences in trade and economics. Because of this, the Russia – Ukraine war impacts the shipping industry as well. However, we at Four Winds KSA will do everything we can to make your decisions easier. Our goal is to explain the situation in the best way possible. We’ve learned so far that there are some things to be expected in these trying times. Because of that, we are here to share our knowledge with you. The more you know, the more stress you’ll avoid in the future. So, without further ado, let’s start.
The War and the Middle East
The Russia – Ukraine war impacts the shipping industry in the Middle East and not only that – its consequences can be felt in trade, economics, and politics. As one of the most reliable freight forwarding companies in Bahrain, we know this area from our personal experience. People are confused, and many different countries are dealing with the ever-greater prices of oil and wheat. Since the effects are felt in many aspects of life, they also appear in the shipping industry. Around 70% of Ukraine’s exports are distributed via ship and the situation is harder than ever in this regard. Russian forces have closed out the Sea of Azov, which is one of the few access points to ocean trade in Ukraine. These are just starting examples of the war’s effect on shipping.
Why the Russia – Ukraine War Impacts the Shipping Industry
The impact of the war has been felt all around the world. Its effect on the shipping industry is related to many other things. Both of these countries have important roles in trade and economy in the region. For example, Russia provides gas and oil in large amounts, while some countries in the Middle East get up to 80% of their wheat supplies from Ukraine. Truthfully, every little thing can impact the shipping industry. However, if you take some precautions, you can protect your dealings abroad. Just make sure to inform yourself of all the insurance options available to you.
So far, the impact of the war-related dealings on the shipping industry is mostly related to the maritime trade. At the moment, this impact is limited to the Black Sea. However, in these situations, we are usually close to a domino effect. Every change in trade and every uncertainty in global politics can cause prices to go up and people to change their opinions. So, imagine how much of an impact a full-scale war can have on the shipping industry. If you’re looking for freight forwarding services, it’s important to monitor the situation day by day. Depending on the way other countries continue to react to the prolonged conflict, things are prone to change all the time.
Ways the Russia – Ukraine War Impacts the Shipping Industry
The war in Ukraine affects the shipping industry in more than one way. If you want to know about the changes and developments in this situation, feel free to contact some of the best freight forwarders in Riyadh. Fortunately, we are here to do our best to explain all of the factors that impacted these changes, so you won’t lack information. Here are some of the ways the Russia – Ukraine war impacts the shipping industry:
- The prices are rising – every change in trade has consequences. With oil and gas costing more each day, a lot of other services will follow.
- Ukraine’s access to the seafaring trade is limited – because of the military blockades, the usual shipping routes from Ukraine are no longer in use. This doesn’t only affect trade directly connected to the country, it also has an impact on the shipping industry from other countries who are using the same trade routes for convenience.
- Possible sanctions and political relations can be an issue – countries need to preserve their political alliances. Because of this, they can limit their dealings with either country involved in the conflict. Do your research and inform yourself of the relations between the countries in the Middle East and Ukraine or Russia. This way, you will understand the situation much better and make correct decisions.
The State of the Shipping Industry
In these uncertain times, the importance of reliable freight forwarders grows with each day. The situation is worrying enough and you shouldn’t be stressed about your investments when they’re in our hands. However, it would be dishonest to suggest that the shipping industry across the world isn’t dealing with its own set of problems. Reports suggest that with the Ruble devaluation, several Russian companies can’t afford to pay for merchandise. It is predicted that this will be the cause of a lot of abandoned shipments and unpaid debts to freight forwarders. It’s very important to keep in mind that hiring good and recommended companies that offer insurance is growing more important each day.
To sum up, everyone wants the war to end. Across the world, people are wishing for a swift resolution to the conflict. When it comes to the way the Russia – Ukraine war impacts the shipping industry, the prices are rising and the trade industry is in a strange place. Sadly, this certainly means that some services will cost a bit more. However, in these trying times, it’s more important than ever to have one of the best logistics companies in Middle East on your side. Firstly, if you work with the right people, you’ll ensure good communication about any issues that might be of importance. Secondly, with good communication, you will be able to make good and informed decisions about your shipments. So, take your time, investigate a bit and then give us a call, so we can get through these times together.