{"id":5727,"date":"2022-02-28T23:23:00","date_gmt":"2022-02-28T17:53:00","guid":{"rendered":"https:\/\/www.gocomet.com\/blog\/?p=5727"},"modified":"2025-08-25T15:41:36","modified_gmt":"2025-08-25T10:11:36","slug":"russia-ukraine-conflict-supply-chain-impact","status":"publish","type":"post","link":"https:\/\/www.gocomet.com\/blog\/russia-ukraine-conflict-supply-chain-impact\/","title":{"rendered":"Russia \u2013 Ukraine conflict: Supply chain bottlenecks to worsen?"},"content":{"rendered":"<style>.kb-row-layout-id5727_5a56bd-92 > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id5727_5a56bd-92 > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id5727_5a56bd-92 > .kt-row-column-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:var(--global-kb-gap-md, 2rem);padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);grid-template-columns:minmax(0, 1fr);}.kb-row-layout-id5727_5a56bd-92 > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id5727_5a56bd-92 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id5727_5a56bd-92 > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}<\/style><div class=\"kb-row-layout-wrap kb-row-layout-id5727_5a56bd-92 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-1-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n<style>.kadence-column5727_765704-8d > .kt-inside-inner-col,.kadence-column5727_765704-8d > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column5727_765704-8d > .kt-inside-inner-col{column-gap:var(--global-kb-gap-sm, 1rem);}.kadence-column5727_765704-8d > .kt-inside-inner-col{flex-direction:column;}.kadence-column5727_765704-8d > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column5727_765704-8d > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column5727_765704-8d{position:relative;}@media all and (max-width: 1024px){.kadence-column5727_765704-8d > .kt-inside-inner-col{flex-direction:column;}}@media all and (max-width: 767px){.kadence-column5727_765704-8d > .kt-inside-inner-col{flex-direction:column;}}<\/style>\n<div class=\"wp-block-kadence-column kadence-column5727_765704-8d inner-column-1\"><div class=\"kt-inside-inner-col\">\n<p>The Russian invasion of Ukraine has set a worldwide ripple effect in motion. Fluctuating currencies, swinging stocks, soaring energy prices \u2013 the ordeal seems long. The global supply chain crisis against which industries have been fighting hard for the last couple of years is now plagued with a fresh set of challenges.\u00a0<\/p>\n\n\n\n<p>The Russia Ukraine conflict has begun to disrupt global supply chains across industries, including energy, agriculture, automobiles and high tech, and it is only the beginning.<\/p>\n\n\n\n<p>Here are the primary factors of concern for the global supply chains due to the Russia \u2013 Ukraine conflict:<\/p>\n\n\n\n<p><strong>Soaring oil and gas prices: the impact on freight<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"300\" src=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-1.webp\" alt=\"\" class=\"wp-image-14505\" title=\"\" srcset=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-1.webp 600w, https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-1-300x150.webp 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p>Russia accounts for about <a href=\"https:\/\/www.cbsnews.com\/news\/russia-ukraine-invasion-stocks-plunge-2022-02-24\/\" target=\"_blank\" rel=\"noreferrer noopener\">12% of the world\u2019s oil supply.<\/a> It is the world\u2019s second-largest oil exporter next to Saudi Arabia, which means supply chain disruptions in the oil market could be a catastrophe. Russia produces five million barrels of crude per day, almost half of which is supplied to European countries. In addition, Europe gets about 35% of its natural gas supply from Russia.\u00a0<\/p>\n\n\n\n<p>While the oil prices have been rising over the last couple of months due to the tensions between Russia and Ukraine, Brent crude prices crossed the $100 per barrel for the first time in seven years, as soon as Russia authorised the military operation against Ukraine. If the tensions continue, analysts predict the<a href=\"https:\/\/time.com\/6151493\/russia-oil-gas-embargo-sanctions-ukraine\/\" target=\"_blank\" rel=\"noreferrer noopener\"> prices will reach $130 within weeks.<\/a><\/p>\n\n\n\n<p>While it may seem like an ideal solution for countries such as Saudi Arabia to intervene and fill in for the gaps from Russian supplies, the delivery infrastructure is not complete. What is even more worrisome is that if the conflicts continue followed by severe sanctions from the west, the price impact will be through the roof, with oil prices rising to as high as $175 and gas to $250, according to a few experts.\u00a0<\/p>\n\n\n\n<p>Any disruption to Russia\u2019s oil export and the ensuing escalation will ultimately be passed on to the shippers and eventually to the consumers. With freight rates at an all-time high and no respite in the foreseeable future, shippers are scrambling for solutions that will help them mitigate this crisis without causing too much damage.<\/p>\n\n\n\n<p><strong>Cyber-attack: collateral damage in supply chains<\/strong><\/p>\n\n\n\n<p>A report has suggested that the Russia-Ukraine conflict could result in further <a href=\"https:\/\/www.cips.org\/supply-management\/news\/2022\/february\/how-a-russia-ukraine-conflict-would-impact-procurement-and-supply\/\" target=\"_blank\" rel=\"noreferrer noopener\">cyberattacks on global supply chains.<\/a> The report indicates that destructive attacks on Ukraine\u2019s infrastructure could also spark significant collateral damage in global supply chains.\u00a0<\/p>\n\n\n\n<p>The 2017 cyber-attack on Ukraine <a href=\"https:\/\/www.cips.org\/supply-management\/news\/2017\/june\/ransomware-attack-halts-maersk-shipping-\/\" target=\"_blank\" rel=\"noreferrer noopener\">crippled the systems of Maersk and FedEx\u2019s<\/a> European subsidiary TNT. Maersk subsequently revealed that the attack cost it around $300m. The Danish carrier was one of the<\/p>\n\n\n\n<p> many thousands of companies that suffered collateral damage in the cyber-attack. In fact, the attack took out Maersk\u2019s systems for about two weeks, making the then world\u2019s largest carrier taken out of trading.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"400\" src=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image.webp\" alt=\"\" class=\"wp-image-14507\" title=\"\" srcset=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image.webp 600w, https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-300x200.webp 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p>Though the 2017 cyber-attack on <a href=\"https:\/\/www.gocomet.com\/carriers\/maersk\">Maersk<\/a> disrupted ports, it still did not significantly impact supply chains at that time due to plenty of buffer capacity. On the contrary, if a similar cyber-attack were to occur today, it could have devastating effects on the global supply chain since there is zero buffer capacity in container shipping.\u00a0<\/p>\n\n\n\n<p>Therefore, if key shipping lines and infrastructures are targeted during the conflict, it could have far-reaching consequences debilitating the already stressed global supply chains.\u00a0<\/p>\n\n\n\n<p><strong>The port of Odesa is closed: The implications<\/strong><\/p>\n\n\n\n<p>As Russia began a full-scale invasion of Ukraine, it prompted the closure of Ukraine\u2019s main port of Odesa. The situation has forced carriers to divert inbound vessels, affecting ocean shipping. Even before the conflict started, ship owners were reluctant to use Black Sea shipping routes and started avoiding it. Insurance providers also demanded notifications of any shipping through the route.\u00a0<\/p>\n\n\n\n<p>Closing the port of Odesa will have tremendous effects on Ukraine\u2019s import and export and the global supply chains subsequently. Any interruptions to the ports around the Black and Baltic seas could lead to continuing disruptions to the global supply chain and not just in Europe.\u00a0<\/p>\n\n\n\n<p><strong>Decisive actions supply chain leaders are taking immediately:<\/strong><\/p>\n\n\n\n<p>As global supply chains just began to recover from unprecedented challenges, the Russia-Ukraine conflict is undoubtedly another test of the resilience of global supply chains. In the last few weeks, supply chain leaders have been figuring out ways to mitigate this conflict\u2019s potential impact on their supply chain operations.\u00a0<\/p>\n\n\n\n<p>Supply chain leaders are heavily relying on <a href=\"https:\/\/www.gocomet.com\/container-tracking-software\" target=\"_blank\" rel=\"noreferrer noopener\">end-to-end supply chain visibility<\/a> to foresee major disruptions and develop contingency plans proactively, including:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensuring loads run full and finding backhauls to help save costs.<\/li>\n\n\n\n<li>Increasing the vendor network and securing the best freight rates.<\/li>\n\n\n\n<li>Diversifying suppliers \u2013 focusing on areas of no risk for raw materials.<\/li>\n\n\n\n<li>Deploying scenario planning using data from <a href=\"https:\/\/www.gocomet.com\/real-time-port-congestion\" target=\"_blank\" rel=\"noreferrer noopener\">port congestion reports<\/a> \u2013 and preparing in advance for adverse conditions.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>While the world is waiting to see how the Russia-Ukraine crisis will unfold, supply chains, which are the lifeline of businesses, have turned towards <a href=\"https:\/\/www.gocomet.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">multi-modal logistics automation <\/a>to stay afloat and successfully navigate this storm.\u00a0<\/p>\n\n\n\n<p>Please feel free to<a href=\"https:\/\/www.gocomet.com\/contact-us\" target=\"_blank\" rel=\"noreferrer noopener\"> reach out to us<\/a> to build your supply chain resilience during these testing times.<\/p>\n\n\n\n<p>You may also be interested in reading our recent blog: <a href=\"https:\/\/www.gocomet.com\/blog\/increasing-ocean-freight-rates-in-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\">Rising ocean freight: What should you prepare for in 2022<\/a><\/p>\n<\/div><\/div>\n\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>The Russian invasion of Ukraine has set a worldwide ripple effect in motion. Fluctuating currencies, swinging stocks, soaring energy prices \u2013 the ordeal seems long. The global supply chain crisis against which industries have been fighting hard for the last couple of years is now plagued with a fresh set of challenges.&nbsp; The Russia Ukraine&#8230;<\/p>\n","protected":false},"author":14,"featured_media":6086,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[273],"tags":[398,396,106,247,399,397,393,395,394,224,269],"class_list":["post-5727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-black-sea","tag-cyber-attack","tag-freight-rate","tag-port-congestion","tag-port-delay","tag-port-of-odesa","tag-russia-ukraine-conflict","tag-russia-ukraine-war","tag-supply-chain-disruption","tag-supply-chain-resilience","tag-supply-chain-visibility"],"tag_names":["Black sea","cyber attack","freight rate","Port Congestion","port delay","Port of odesa","Russia Ukraine Conflict","Russia ukraine war","Supply chain disruption","supply chain resilience","supply chain visibility"],"category_names":[],"_links":{"self":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/5727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/comments?post=5727"}],"version-history":[{"count":1,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/5727\/revisions"}],"predecessor-version":[{"id":30084,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/5727\/revisions\/30084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/media\/6086"}],"wp:attachment":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/media?parent=5727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/categories?post=5727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/tags?post=5727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}