Importers from London to Warsaw will soon face higher shipping costs, longer delays and an obstacle course of sanctions to navigate as Russia’s widening assault on Ukraine complicates the movement of cargo between Europe and Asia, reports the Daily Progress.
New disruptions on supply chains
President Vladimir Putin’s invasion, and retaliatory steps designed to paralyze the Russian economy, are heaping new disruptions on supply chains that never recovered from unprecedented shocks caused by the pandemic. Beyond the devastating human toll, the war threatens higher costs for fuel, grain, industrial metals, and other raw materials used in Asian-made consumer goods headed for Europe and beyond.
Mediterranean Shipping Co. and A.P. Moller-Maersk, the world’s biggest container carriers, halted bookings for Russian freight, with Maersk on Wednesday warning customers, “this is a global impact, and not only limited to trade with Russia.”
Not a good signal for European economies already facing energy spikes, product shortages, clogged ports and the highest inflation since the inception of the common currency more than two decades ago.
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Source: The Daily Progress
