Russia’s EU Food Ban a Blessing in Disguise for Shipping Companies (MT)
For the European transport and logistics sector, which generates 900 billion euros ($1,200 billion) in annual revenue and employs over 7 million people, the Russia food import ban hits the business of those companies already grappling with tight margins and overcapacity due to volatile freight costs and ailing European economies.
However and at the same time, the Moscow Times has noted that shipping companies like A.P. Moller-Maersk stand to benefit as Russia looks further afield to places like Brazil to help restock its larder. Maersk’s chief executive Nils Andersen was quoted as saying:
“We have a big shipping route from Latin America directly into Saint Petersburg in Russia. There will be an upswing in [volumes on] long haul routes. When there is less trade between Europe and Russia, more traffic turns up on the Asian side [of Russia], where we also have port activities at Vostochny.”
Other companies that operate “reefers” or specialized refrigerated cargo ships that carry perishable goods, include Switzerland’s Kuehne & Nagel, Germany’s Hapag-Lloyd and Singapore’s Neptune Orient Lines. In addition, companies like Deutsche Post’s DHL, Britain’s Stobart Group and France’s Norbert Dentressangle operate a range of businesses from trucking to freight forwarding to logistics, that may be able to make up for any lost trucking business with a boost to shipping or logistics.
To read the whole article, Russia’s Food Ban Blessing in Disguise for Shipping Companies, go to the website of the Moscow Times
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