Impact of Russia-Ukraine Conflict on Shipping Sector

[ABS News Service/02.04.2022]

Due to conflict between Russia and Ukraine the Shipping companies are facing the following issues:-

i. Shipping activities in northern black sea is closed

ii. Insurance cover has been withdrawn by the P&I.

iii. Containers bound for Ukraine and Russia are lying at different transhipment ports.

iv. Payment affected due to blockage of SWIFT in Russia.

v. Congestion at neighbouring ports and transhipment ports.

vi. Trade to Russia and CIS countries have been affected and Shipping lines are not accepting goods for Russian ports.

The following steps have been taken to protect the Indian shipping companies from the adverse impact of this crisis:-

i. Meetings are taken at regular intervals with all stakeholders to review the situation.

ii. Shipping lines have been requested to explore alternative routes for Commonwealth of Independent States (CIS) / Russian cargo.

iii. EXIM Traders were informed that M/s ONE Shipping is carrying containers to Vladivostok.

This information was given by the Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal in a written reply to the Lok Sabha on 1 April 2022.