Trans-shipment dwell times have increased 43% across Europe since February 17th due to the Russian attack on Ukraine bringing massive disruption to the trade industry. Since troops began to mass on the Ukrainian border last month, disruption has been a mounting tidal wave that has pushed export dwell times up by 25% in European ports, and 43% for trans-shipment cargo specifically.
Some places were particularly pronounced in delays for consumer packaged goods and food and beverages where dwell times in Europe increased by 55%. Meanwhile, box shipments into Russia have reduced by 17% and are very likely to drop steeply as the effect of widespread sanctions and commercial decisions by carriers come into play.
CMA CGM, MSC, and Maersk have all opted to halt all activity with Russia because of friendly fire incidents as well as other dangerous conditions being faced at the ports. These companies make up a good 28% of the container vessel operations in Russia as well. For example: out of the 403 container vessels that operated in Russia over the past year, 149 of those have been owned by these three company giants, and are responsible for 1,244 Russian port calls.
The heaviest effect is expected to be in air cargo, as these ports have entered into a no-fly zone, causing ocean freight rates to rise to insane proportions. With air cargo capacity dwindling, rates are spiking alongside huge fuel surcharges and further complicated delays due to diplomatic strain in eastern Europe.
Meanwhile, bunker prices have also gone off the rails. Ship Bunker reports that between February 17th and on March 2nd the global average price of VLSFO has gone from an already-elevated $769.50 per tonne, to $885.50 per tonne, with the cost being $525.50 this time last year.
Though the dwell time disruption continues to increase we will keep constant vigilance to make sure you are kept in the know. With Coppersmith on your side, you can rest assured that we’ll help you navigate into more efficient pathways to get your cargo moving. We’re not just here to help with the movement of cargo, we help manage your supply chain to be the most cost-effective and as efficient it can be. If you have any questions please contact your Coppersmith representative today and we’ll help get you back on track.
