Putin’s war against Ukraine will exacerbate the logistics sector’s labour shortage, as sanctions impede recruitment for seafarers and drivers, reports the Loadstar.
Labour shortage
International Chamber of Shipping (ICS) data notes that Russians account for 10.5% (198,123) of the global shipping workforce, with Ukraine providing 76,442 (or 4%), and warned restrictions on Russian crew could hinder a sector already hit by labour shortages.
ICS said: “To maintain unfettered trade, seafarers must be able to join and disembark ships freely across the world. With flights cancelled in the region, this will become increasingly difficult. The ability to pay seafarers also needs to be maintained via international banking systems.”
On Tuesday, the UK government announced it would block ships with “links to Russia” from its ports, adding to other sanctions sources have said were “already beginning to bite”.
While not specifically targeting Russian merchant sailors, these are having a knock-on impact, with crew disembarking at some ports being unable to fly home due to airspace closures and bans on Russian flights – and there are concerns from both Russians and Ukrainians over pay.
Pay issue under discussion
A spokesperson for the UK Chamber of Shipping said the pay issue was being discussed daily with European and international partners.
One source said that while it was too soon to gauge the extent of the impact of the cancellation of flights from and into Russia and restricted flights between Europe and Asia, along with economic and banking sanctions, both Russian and Ukrainian crews wanted to keep working.
But the source did tell The Loadstar: “One thing we have picked up is that many Ukrainians do not want their salaries paid into Ukrainian banks.”
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Source: The Loadstar
