How The War Impacts Costs, Supply Chains, and International Trade

The delivery specialist ParcelHero says freight transportation to Ukraine is at a virtual standstill. On top of that, many services to Russia have also stalled. Read on to learn what the war means for logistics business in Eastern Europe.


The Cost of War

The Head of Consumer Research at ParcelHero, David Jinks, believes that this war will harm both Russia and Ukraine economically. However, the impact doesn’t end there. Businesses across the UK are feeling the high cost of this war. “The invasion has had an immediate economic impact on Russia, which doubled its interest rate to 20% on Monday after the Rouble sank by as much as 30%, before settling back down to 20%. However, UK international businesses, both large and small, are also counting the cost,” Jinks said.

Parcels Halted

Most international parcel operators have suspended services to Ukraine since the end of February. Major carriers like UPS, FedEx, and TNT have all temporarily stopped international services to Russia as well. These couriers are in the process of returning items that were already in transit. Of course, this is not always possible. “Logistics companies such as DHL and DSV have all asked their Ukrainian employees to stay at home with their families and follow instructions from local authorities,” Jinks explained.

The Impact of Sea Freight

Sea shipping has also been impacted. Zero services are operating through Ukraine’s key port, Odesa. According to Ukraine, two foreign-owned commercial ships have been attacked by Russian forces. Because of this, surface shipments are being re-routed through Romania, Lebanon, and Greece. Ocean Network Express (ONE) recently suspended all container traffic to and from Russia, and Maersk is on the same course to do the same.


Our thoughts will be with the people of Ukraine and everyone that’s affected by this war. We’ll keep you updated on how this event continues to impact the logistics industry.