On March 1, 2022, the Mediterranean Shipping Company (MSC) introduced a temporary stoppage on all cargo bookings to and from Russia effective immediately. It covers all access areas including the Baltics, Black Sea, and Far East Russia. Humanitarian goods, medical equipment, and food, however, are considered essential goods by MSC and will still be accepted and they will screen bookings for delivery.
Following the February 2022 conflict in Ukraine, the MSC has been closely monitoring the advice from governments about new sanctions. Services going to and from Russia have been operating this far in compliance with international sanctions measures that are applicable to it.
Companies such as Maersk, and France’s CMA CGM, also announced they would no longer take bookings for good from Russia, suspending most deliveries to the country. CMA CGM stated that their utmost priorities remained to protect their employees and ensure as much as possible the continuity of the supply chain. These vital companies carry the bulk of the world’s manufactured goods. Russia, being the world’s 11th largest economy and supplier of one-sixth of all commodities by these companies, means that Moscow is effectively cut off from a major chunk of the globe’s shipping capacity.
With the west imposing heavy restrictions on Russia to close off its economy from the global financial system, companies have been pushed to halt sales, cut ties and dump tens of billions of dollars worth of investments.
Due to these new changes and ongoing issues, Edward J. Zarach & Associates will be watching the other carriers and situations as they arise in eastern Europe. If you need to look into your shipments to see if they will be impacted, please don’t hesitate to reach out to your Zarach representative today!