15-07-2022 Russia’s commercial departures creep up as war drags on, By Bridget Diakun, Lloyd’s List
Outbound sailings of commercial vessels from Russia to foreign ports are approaching levels recorded prior to the incursion into Ukraine. This comes despite a raft of sanctions designed to pressure the Kremlin in response to the conflict, and the numerous shipping entities and stakeholders that have since moved to reduce trading ties with the Russian Federation. Departures of bulk carriers, general cargo ships, tankers and containerships dropped 22% in the immediate aftermath of the incursion, according to vessel tracking data from Lloyd’s List Intelligence. Total sailings from Russia to foreign ports was 2,020 in March, compared with 2,230 in February.
Western nations have piled sanctions on Russia since the start of the military operation in February while businesses have distanced themselves from the country in line with government sentiment. All of this has had a limited impact on seaborne trade so far. The number of vessels departing Russian ports is slowly creeping up, although the figure is still about 15% lower than the year before. Bulk carrier trades have been the least affected because this has largely not been subject to restrictions. In March, there were 402 departures of bulker carriers, down from 417 in February. There were 462 outbound sailings in May, which is 7% less than a year earlier. Given Russia is an important source of wheat and fertilizer, sanction measures have been carefully worded to enable the flow of agricultural trade. The situation for bulk commodities will be changing soon, though. The European Union’s ban on Russian coal takes effect on August 10. Japan, one of the top buyers of Russian coal behind the EU and China, is also looking to gradually reduce its imports of this commodity. Meanwhile, China and India have been increasing their imports of coal to take advantage of cheaper prices. Departures of bulk carriers and general cargo ships are increasing month-on-month and are above January levels.
Containerized trade has been the most affected by consequences of the situation in Ukraine. Major container line operators and third-party feeder operators started to reduce or phase out services relating to Russia’s container ports in the first weeks after the invasion.