Unified by crisis

War is damaging for everyone, not least of all for the civilians caught up in the crisis, but also for the freedom we have in the west which allows for free flowing trade and supply.

It’s clear that the fallout from the war in the Ukraine will be felt by everyone, especially as the world starts to recover from the Covid-19 pandemic.

Sanctions

The Ukraine’s Maritime Administration has told Reuters that Ukrainian ports will remain closed until Russia’s invasion ends and there are reports that the Port of Mariupol has sustained damage from Russian shelling and that Russian forces have captured Kherson.

Many shipping companies have suspended sailings to affected Black Sea ports with insurance premiums for voyages soaring in recent days and reports of at least three commercial ships hit by bombs.

Both Russia and Belarus are now bound by sanctions imposed by much of Europe.

In retaliation, foreign flagged ships are being blocked in Ukrainian seaports by the Russian navy.

Subsequently, the knock on effect on demand and supply is skyrocketing.

The cost of oil surged above US$110 a barrel as traders started boycotting Russian crude and food prices look set to soar as wheat and corn supply are heavily affected by the disruptions.

Ports and terminal operators have also expressed concerns for their workers.

HHLA for example, said that it removed its 480 employees at its terminal at the Port of Odessa at the start of the troubles.

While it said “it is in our view still too early to say anything about the possible effects of sanctions or the consequences of war,” it was clear on its stance.

HHLA committed itself to Ukraine in the early 2000s, relying on the Helsinki Final Act and other post-Cold War security agreements in Europe. It has since invested about US$170 million in the terminal in Odessa.

”This was also a contribution to securing peace and prosperity in Europe,” it said.

Collectively, the ports and maritime sector has been expressing its solidarity with the Ukraine.

The Ukrainian Sea Port Authority joined The European Sea Ports Organisation (ESPO) as an observer member in 2018.

ESPO said it is deeply concerned about the well-being of USPA’s employees and the whole Ukrainian port community.

”The thoughts of Europe’s ports are with them and their families, hoping for their safety,” it said.