In what has become a major disruption to international exports and imports, several container shipping giants have stopped taking bookings to and from Russia. Among those who announced they were suspending the Russian route in March were Danish shipping giant Maersk Line, Swiss-based Mediterranean Shipping Company S.A. (MSC), and France’s CMA CGM.
The Possible Impact of the Boycotts
These boycotts are not part of Western sanctions against Russia for its actions in Ukraine, but they will certainly have an impact on how business is conducted throughout the Black Sea region. The companies cited security concerns as one of the reasons for the suspension, but they will continue to transport essentials such as medication, food, and humanitarian aid.
Maersk stated that it was "deeply concerned by how the crisis in Ukraine continues to deteriorate,” while explaining that the exception for essential deliveries was to demonstrate its focus on social responsibility and its attempts to help society. Meanwhile, CMA CGM announced in March that, for safety reasons, it had decided to suspend all bookings to and from Russia "as of today and until further notice."
The announcement follows the growing list of companies suspending operations or selling off their assets in Russia. As a major player in the export of commodities, this will affect Russia’s ability to sell as well as receive important goods, components, and raw materials.
Although Russian oil exports have not been banned in Europe, there is still reluctance by many shipping companies to export it. It remains to be seen how this will work out in the future, especially as many Western countries continue to explore alternative sources of oil and gas.
These bans also mean that other ports around the world will be affected as traffic reduces around the Black Sea, Baltic, and Asian shipping ports. There will most likely be a significant impact on international trade, economic activity, and port jobs.
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