Shippers stop booking cargo for Russia, Ukraine

Russia is the topmost destination for India’s engineering exports in the Commonwealth of Independent States CIS) region

Shipping liners have stopped booking export cargo destined for Russian and Ukrainian ports in the wake of the conflict between the two countries, officials said. Cruise liners have also announced the cancellation of port calls in Russia, they said.

Russia is the topmost destination for India’s engineering exports in the Commonwealth of Independent States (CIS) region.

Not only has action by shippers jeopardised exports which have been contracted but has also placed a question mark on future shipments.

“Many shipping liners stopped supplying containers and taking bookings for Russian ports due to geopolitical uncertainty. MSC, Maersk, Hapag-Llyod, which are leaders in global container shipping from eastern ports, have also stopped bookings,” West Bengal Custom House Agents' Society president Sujit Chakraborty told PTI.

Engineering products exporter Nipha Exports director Rakesh Shah said his company has a consignment for Russia but his liner Hapag-Llyod has stopped container booking due to the situation.

This ongoing Russia-Ukraine conflict may act as the most prominent deterrent in fulfilling the engineering exports target as the last quarter of a financial year, especially the month of March, usually sees a substantial jump in shipments, EEPC India chairman Mahesh Desai told PTI.

"If the strife continues for some more days, exports to Russia may not reach the expected level by the end of the fiscal," Mr. Desai said.