FIATA on Recent Events in Eastern Europe

The International Federation of Freight Forwarders Associations (FIATA) has issued a short newsletter on the outlook for the logistics market in connection with recent events in Eastern Europe. According to the text, the entire global supply chain will be affected by disrupted sea, road, rail, and air deliveries.

The shipping crisis will intensify as ports are blocked. Export and import stoppages are possible, as well as sanctions. These may lead to a mass withdrawal of tankers from the global freight market and a resulting increase in spot rates and transport costs.

Stranded drivers in Eastern Europe face challenging conditions, often with poor sanitation and without food or compliance with safety requirements. The European Commission, some EU member states, and representatives of other European states are calling for support for visa- and permit-free travel for drivers.

Difficulties are also expected regarding organizing transport by rail, which will also affect the flow of goods from China to Europe. Possible consequences include a slowdown or cessation of bilateral trade flows between China and Europe or even a complete halt in transit freight traffic. 50% of all rail freight traffic from China to the EU goes through Russia and Belarus. In 2021, the volume of deliveries increased by 30%.

Recent events in Eastern Europe may also affect air transport. Flights may need to be rerouted, which would have a noticeable impact on air traffic between Europe and Asia. The changes could provoke difficulties similar to those faced by the airline industry during the coronavirus pandemic.