• Home
  • News
  • UNCTAD issues report about effects of the military operation in Ukraine on maritime trade logistics
  • 2022 June 30 09:35

    UNCTAD issues report about effects of the military operation in Ukraine on maritime trade logistics

    The military operation in Ukraine is stifling trade and logistics of Ukraine and the Black Sea region, the UN Conference on Trade and Development (UNCTAD) says in a report, published on 28 June. The search for alternate trade routes for Ukrainian goods has rapidly increased the demands on land and maritime transport infrastructure and services.

    For Ukraine's trading partners, many commodities now have to be sourced from further away. This has increased global vessel demand and the cost of shipping around the world.

    Grains are of particular concern given the leading role of the Russian Federation and Ukraine in agrifood markets, and its nexus to food security and poverty reduction.

    Grain prices and shipping costs have been on the rise since 2020, but the military operation in Ukraine has exacerbated this trend and reversed a temporary decline in shipping prices. Between February and May 2022, the price paid for the transport of dry bulk goods- such as grains- increased by nearly 60 per cent. The concomitant increase of grain prices and freight rates would lead to a nearly 4 per cent increase in consumer food prices globally. Almost half of this impact is due to higher shipping costs.

    The Russian Federation is a giant in the global market for fuel and fertilizer, which are key inputs for farmers worldwide. Disruptions in their supply can lead to lower grain yields and higher prices, with serious consequences for global food security, particularly in vulnerable and food-import dependent economies.

    The Russian Federation is also a leading oil and gas exporter. Confronted with trade restrictions and logistical challenges, the cost of oil and gas has increased as alternative sources of supply, often at more distant locations, are called upon.

    Higher energy costs have led to higher marine bunker prices, increasing shipping costs for all sectors. By the end of May 2022, the global average price for very low sulphur fuel oil (VLSFO) had increased by 64 per cent with respect to the start of the year.

    Taken altogether, these increased costs imply higher prices for consumers and threaten to widen the poverty gap.




2022 August 8

18:37 Seaway 7 signs Letter of Award to commence early works on Moray West inter-array cables
18:01 Acceptance testing for all three Baltic Pipe compressor stations in Poland is now complete
17:53 First ship with agricultural products from Ukraine arrives at the port of destination
17:36 International Marine Contractors Association issues burial at depth measurement guidance
17:06 Rhine water level falls again in Germany - Reuters
16:57 The number of wagons transported through the Port of Baku increased by 25.8%
16:24 EXMAR sells floating liquefaction unit to Eni
16:12 Ten men arrested for illegal transaction of marine gas oil at the port of Singapore
15:59 Tank container for LNG developed by Uralcryomash
15:46 Strikes announced at port of Felixstowe as company fails to make acceptable pay offer
14:41 LNG bunker prices near record high - Splash
14:23 Completion of ferry for Vanino-Kholmsk line can be postponed to 2023
13:54 Japan's INPEX demands US$970mn in damages from DSME - BusinessKorea
12:56 Port of HaminaKotka cargo turnover in January-July 2022 fell by 2% YoY
12:21 Bahri partners with Aventra Group
12:17 VSC commences handling new regular container service operated by SITC to S. Korea, China and Vietnam
11:44 NYK to build its fourth LPG dual-fuel very large LPG / NH3 carrier
10:58 Russian President bans unfriendly countries from transactions involving shares in hydrocarbon projects
10:41 Japan companies to establish Maritime and Ocean Digital Engineering Cooperation Program at the University of Tokyo
10:04 Geoizol wins tender for construction of infrastructure at Pionersky passenger terminal
09:16 Crude oil futures rise after a fall on August 5
08:57 MABUX: No firm trend in Global bunker market on Aug 08

2022 August 7

15:13 BPA calls for companies to join the Busan Port Overseas Market Expansion Project 2022
14:27 Wan Hai Lines holds online ship naming ceremony for new vessels
11:53 Keppel announces termination of contracts
09:49 INEOS at Grangemouth backs bid for Forth Green Freeport

2022 August 6

14:36 Announcement on execution of agreement regarding establishment of JVC with TOYO
12:31 Borr receives LOI for jack-up drilling rig
10:23 RightShip to acquire  Thynk Software’s maritime tech business

2022 August 5

18:27 Carnival Corporation upgrades global fleet with fuel- and energy-saving technology
18:07 Yilport breaks all-time container handling record in H1 2022
17:50 IAA PortNews’ summary of past week news
17:23 UK authorities give green light to the sharing agreement between P&O Ferries and DFDS
17:06 Montagu acquires Lloyd’s List from Informa
16:57 A. P. Moller - Maersk to acquire Danish company Martin Bencher Group
16:37 Three more ships receive the green light to leave Ukraine’s Black Sea ports on Friday
16:29 Throughput of port Kavkaz in 7M’2022 fell by 22% Y-o-Y to 12.5 million tonnes
16:13 Russia to spend $30 billion on Northern Sea Route by 2035 - Reuters
15:24 Yang Ming names new 11,000 TEU vessel, ‘YM Throne’
15:06 Shipping faces investment obstacles in low-carbon marine fuels - S&P Global
14:44 NSR development plan foresees completion of sea terminal for Pavlovskoye deposit development in 2025-2026
14:02 Kawasaki receives an order for an 86,700 m³ LPG-fueled LPG/ NH3 carrier
13:31 Two new ferries started delivering cargo from the port of Temryuk to the Turkish port of Samsun
13:12 Wilhelmsen joins industry partners to launch innovation competition to drive Diversity, Equity, and Inclusion
12:53 Kawasaki receives order for steam turbine generator from Taiwan
12:20 Tokyo MoU and Paris MoU launch joint concentrated inspection campaign ON STCW
12:06 Russia orders to set up new operator of Sakhalin-2 LNG project in three days - S&P Global
11:42 Railway link with Lugaport terminal opens in the port of Ust-Luga
11:20 Kalmar received order from Yilport for a total of 27 new mobile equipment
11:08 Austal Australia delivers 2nd Evolved Cape-class Patrol Boat to the Royal Australian Navy
10:27 WTI futures show fluctuations below $89 per barrel
10:06 Sinopec Fuel Oil remains China's top bunker supplier - S&P Global
09:45 Draft law on NSR passage regulations for foreign warships submitted to RF State Duma
09:28 ICTSI net income up 50% to US$294.5mln in H1 2022
09:07 CargoWise and ZIM connect to improve customer experience
08:57 MABUX: Global bunker prices may continue to decline on Aug 05
08:18 ABS publishes industry leading metadata best practices to support marine and offshore operations
06:34 Russia's Gazprom says other Nord Stream gas turbines also face sanctions block - S&P Global

2022 August 4

18:30 Naval Architect selected for UC San Diego’s new California coastal hybrid-hydrogen research vessel
18:04 International Chamber of Commerce calls for cautious optimism as markets begin to stabilise