Ukraine & Black Sea Region Situation

March 3, 2022

Client Advisory: Market Update - Russia, Belarus, Ukraine 

The current situation in Ukraine is evolving rapidly, Crane Worldwide is working to bring the most up to date information to our employees and our clients. 
There are current sanctions against commodities, people, companies and Russian related carriers. 

Trade restrictions covering the movement of certain commodities, which include: 

  • All Dual-Use goods 
  • Goods and technologies for use in oil refining and exploration
  • Technologies and goods relating to Aviation and space
  • Propulsion including related technologies
  • Technology within the defense and security sector

Additional Information on the current situation:
•    UK Sanctions can be found here
•    European Union Sanctions can be found here and here

The Air and Ocean markets have also been significantly impacted – as follows: 

Air Information:

•    European Union closed Airspace for Russian owned and operated aircraft
•    Russia has closed its Airspace to all European Aircraft
•    Other countries have followed suit – such as Canada
•    Ukranian Airspace is also closed to commercial flights
•    Due to these closures many schedules have been cancelled or re-routed via alternative airspace causing further disruption to schedules, capacity and pricing

Crane Worldwide Logistics will continue to monitor the impact of the security situation on the Air Market and communicate the latest update as they are made available.

Ocean Information:

Ocean carriers announced their office closure in Ukraine effective February 24th for an indefinite time. All vessels en route will omit Ukrainian ports. Individual updates will be made available by ocean carriers for those shipments. 

Maersk line advised on February 25th that they will not accept any bookings destined to Ukraine. All cargoes en route to Ukraine are being planned for discharge in Port Said and Korfez. 
Hapag Lloyd made the following announcement on February 24th. In cases where the shipments were already en route to Ukraine or Russia, please know that our teams are working to assist you based on your situation.

  • Ukraine: booking stop.
  • Russia: temporary booking suspension.

MSC ships will not call at Ukrainian ports, and they are implementing various other operational changes to other vessels in the region to make use of their wide Black Sea port network. For cargo destined to Ukraine, MSC will declare the voyage as ended in the last port prior to Ukraine. MSC is also reviewing how to best manage cargo for transit to Ukraine that is currently lying at ports in the Black Sea and the Mediterranean. They will communicate directly to customers any relevant details of additional contingencies and will endeavor to treat shipments of chilled and frozen cargo in reefer containers with care. Stacking areas at hubs in the region are already very full and we expect the impact of the Ukraine situation to present additional challenges on top of existing global supply chain disruptions.

CMA-CGM Group has decided to suspend all vessel calls to Ukraine as of February 24th and until further notice.
ZIM announced on February 25th, they stop accepting bookings to Odessa effective immediately. Services to and from Novorossiysk (Russia), Constanza (Romania), and Varna (Bulgaria) for the time being remain available. However, those are subject to changes in case the security situation in the region deteriorates. Additionally, ZIM will cease taking bookings to Poti (Georgia). ZIM will stop accepting any refrigerated or hazardous (DG) cargo bookings into the Black Sea. Any other shipments into the Black Sea must be on prepaid terms only, no collect terms will be allowed.

Evergreen announced on February 25th that their ships will not call at Odessa & Novorossiysk until the situation changes.
All LCL bookings to Russia, Ukraine, and Belarus are suspended until further notice. Shipments currently on hand will remain in our CFS until full sanctions are known.
Crane Worldwide Logistics will continue to monitor the impact of the security situation and communicate the latest update as they are made available.

Rail Freight

China to Europe Rail freight operations are currently in operation. We are advising full review of all Sanctions, Services and considerations prior to booking. 

Ground Services

Scheduled Ground services to Ukraine are suspended at this time.

Insurance

It is expected that underwriting for War associated risk will be removed by the global insurance industry – which will add further significant consideration during the vetting process.

Please don't hesitate to reach out to your local Crane Worldwide Logistics representative should additional support be needed at this time.


UPDATE February 25th.

Considering the current circumstances in Ukraine that have led to changes in operational outlook in Russia and Ukraine, please find below an update related to ocean service and operations.

On February 24, all commercial operations at Ukrainian Seaports were suspended by order of the Ukrainian military. All vessels within Ukrainian ports have been asked to leave immediately.

On February 25th, the International Transport Workers’ Federation (ITF) and the European Transport Workers’ Federation (ETF) called for an immediate ceasefire in hostilities, for the conflict to return to the diplomatic level, and respect for international human rights and humanitarian law, following the military escalation in Ukraine.

Ocean update

Ocean carriers announced their office closure in Ukraine effective February 24th for an indefinite time. All vessels en route will omit Ukrainian ports. Individual updates will be made available by ocean carriers for those shipments. 

Maersk line advised on February 25 that they will not accept any bookings destined to Ukraine. All cargoes en route to Ukraine are being planned for discharge in Port Said and Korfez. The below services are being offered by Maersk additionally:

  • Free Change of Destination services, subject to re-stowage and shifting costs.
  • No cancellation fee on active bookings to and from Ukraine.
  • Interim stop of the Detention and Demurrage clock for containers in Ukraine until March 3rd, 2022, where the demurrage and detention responsibility lie with Maersk.
  • Flex Hub Lite – access to up to 28 days of free time in selected hub ports. This is a chargeable service with a fixed cost of US $800. *subject to operational feasibility.

Hapag Lloyd made the below announcement on February 24th. In cases where the shipments were already en route to Ukraine or Russia, please know that our teams are working to assist you based on your situation.

  • Ukraine: booking stop.
  • Russia: temporary booking suspension.

MSC ships will not call at Ukrainian ports, and they are implementing various other operational changes to other vessels in the region to make use of their wide Black Sea port network. For cargo destined to Ukraine, MSC will declare the voyage as ended in the last port prior to Ukraine. MSC is also reviewing how to best manage cargo for transit to Ukraine that is currently lying at ports in the Black Sea and the Mediterranean. They will communicate directly to customers any relevant details of additional contingencies and will endeavor to treat shipments of chilled and frozen cargo in reefer containers with care. Stacking areas at hubs in the region are already very full and we expect the impact of the Ukraine situation to present additional challenges on top of existing global supply chain disruptions.

CMA-CGM Group has decided to suspend all vessel calls to Ukraine as of February 24th and until further notice.

ZIM announced on February 25th, they stop accepting bookings to Odessa effective immediately. Services to and from Novorossiysk (Russia), Constanza (Romania), and Varna (Bulgaria) for the time being remain available. However, those are subject to changes in case the security situation in the region deteriorates. Additionally, ZIM will cease taking bookings to Poti (Georgia). ZIM will stop accepting any refrigerated or hazardous (DG) cargo bookings into the Black Sea. Any other shipments into the Black Sea must be on prepaid terms only, no collect terms will be allowed.

Evergreen announced on February 25th, their ships will not call at Odessa & Novorossiysk until the situation changes.

All LCL bookings to Russia, Ukraine, and Belarus are suspended until further notice. Shipments currently on hand will remain in our CFS until full sanctions are known.

Crane Worldwide Logistics will continue to monitor the impact of the security situation and communicate the latest update as they are made available.

If you have any concerns or need additional information, please contact your Crane Worldwide Logistics representative.

Air update

As of February 25, 2022, Ukrainian airspace is closed and continues to be. 

However, flight operations in and out of Russia, for now, are still operating. 

There are strong rumblings that stronger sanctions might be coming down.

If that does happen not only U.S. carriers but other international carriers both NATO and some non- NATO could pull flights.

We will continue to monitor the situation. 

Source: Ocean carrier's advisory, Container News


Ukraine Appeal

Two ladies with a selection of Humanitarian Aid for UkraineCrane Cares and is responding with a sense of urgency to the humanitarian aid requirements on the borders of Ukraine. In partnership with the Polish Medical Association, Crane Cares has set up a fundraiser to support the medical aid requirements of the charity. All funds donated are received directly by the institution in order to purchase urgent medical supplies and support that is needed at this time.

In addition, supplies have been collected by a number of our stations and transported directly to charities in Poland and into Ukraine with partnering organizations.

Further information and a link to our donation page is available here

Donate Now

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