28th February, 2022
Dear Valued Gava Customers,
Given the current crisis in Ukraine and its impact on transport and logistics, we would like to share the following information. Freight disruptions are emerging in Europe and Asia as the impact of Russia’s invasion is causing delays to the movement of goods and sparking warnings of increased shipping costs.
Air Freight:
Due to the situation in Ukraine, several carriers have stopped all operations with this country until further notice. Air Cargo to Ukraine destinations are currently suspended, and no more commercial carriers are flying to the Ukraine Airports, as airspace has been closed (Dnipro, Lviv, Kyiv and Odessa). Therefore, it is expected that discontinuity in freight traffic will continue to increase.
There can also be an expected impact on Asia-Europe’s trade lane and vice versa, as most of the flights between the countries will need to be rerouted. For instance, Ukraine International Airlines has suspended charter and scheduled flights to and from the country. Additionally, British Airlines has been banned from landing at Russia’s Airport and crossing its airspace.
Sea Freight:
Unfortunately, all sea freight bookings to and from Ukraine are not accepted anymore. The affected areas include the ports of Odessa (Ukraine), Novorossiysk (Russia), Constanta (Romania) and the entire Black Sea area. The current floating shipments for Ukraine are being diverted to Tripoli, Constanta, or Piraeus. Due to the unpredictable scenario, any new import or export bookings to Russia and other adjacent countries may be rejected at any given time. Vessels are still calling Russian ports; however, most carriers are demanding prepaid terms only and may require a deposit before entering Russia.
Landbridge:
The freight trains are operating normally, and there is no impact for the time being. However, in the event of any unforeseen changes, the subsequent trains will adjust the route according to the real-time situation and assist in minimising the impact.
The service from Ganzhou and Xian to Budapest will continue to be routed via Ukrainian territory (EU Border: Záhony). However, if the operation is affected by a significant situation on-site, corresponding changes will be made. All other corridors are not moving via the Ukrainian territory. Nevertheless, we ask that our customers prepare themselves accordingly in case of any changes and switch to alternative transport modes and routes
Road Freight:
Most road traffic into Ukraine has been suspended, with freight insurance for goods transiting the region being rendered void. Additionally, this conflict has the potential to affect consignments to and from other Eastern European countries. So far, all other consignments are running normally; however, we will keep you informed of any significant changes.
Should you have any questions, please don’t hesitate to contact us at Gava Australia. For additional updates and information on the Latest News in the industry, please visit our new Gava Website https://www.gava.com.au/blog/.
Regards,
Gava Australia
