too difficult! Russian logistics “to a standstill”?

With shipping options dwindling and payment systems unsupported, sanctions on Russia are starting to affect the entire logistics industry.

A source close to the European freight community said that while trade with Russia “certainly” continues, the shipping business and finances “have come to a standstill”.

The source said: “Companies not sanctioned continue to trade with their European partners, but even so, questions are starting to arise. How can air, rail, road and sea transport goods from Russia when capacity is drastically cut? Transport systems , especially the transport system to Russia is becoming very complex, at least from the EU.”

The source said that in terms of logistics, the most severe sanctions against Russia are the decision of EU authorities and other countries to close airspace to Russian flights, and to suspend business and logistics operators to Russia and cut off services to Russia.French logistics firm downplays impact of sanctions on Russian business.

French automotive and industrial logistics specialist Gefco downplayed the impact of its parent company’s inclusion on the EU sanctions list following the Russian-Ukrainian crisis on its business. Russian Railways holds a 75% stake in Gefco.

“There is no impact on the conduct of our business operations. Gefco remains an independent, apolitical company,” the company said. “With over 70 years of experience in complex business environments, we remain fully committed to safeguarding our customers’ supply chain.”

Gefco did not comment on whether its operations would continue to use Russian Railways services to deliver vehicles to Europe as normal.

At the same time, FM logistics, another French logistics company with close ties to Russia, said: “As far as the situation is concerned, all our sites in Russia (nearly 30) are operating. These customers in Russia are mostly food, professional Retailers and FMCG manufacturers, especially in the cosmetics industry. Some customers have suspended operations while others still have service needs.”

Post time: Aug-02-2022