After months of largely positive news in the UK logistics sector, global events look likely to complicate matters significantly. The Russian invasion of Ukraine is set to impact international hauliers through increased fuel costs, freight rate hikes, surcharges and general supply chain disruption – with the entire EU to be affected.

The disruption will clearly impact war-affected areas directly, however, nothing ever happens in isolation, with the fuel prices already rocketing across Europe as a result. In addition to the physical disturbances created by the conflict, there is also likely to be reduced ability for international transactions to occur.

Global Supply Chain Inflation

Speaking about the situation in the region, Chris Rogers, Flexport supply chain economist, had this to say “The conflict in Ukraine could, of course, cause supply chain and international transaction issues and there’s also likely to be increased commodity prices, which could further exacerbate the ongoing global supply chain inflation”.

There is also a major worry over the likelihood of Russian cyber attacks affecting those working in logistics, with many forwarders expressing concern. Wars also affect haulage prices in general, with fuel and BAF surcharges impacting air and deepsea ocean freight – as has happened during conflicts occurring in the Middle East.

Further Delays & Disruption Expected

According to Marc Boileau of FourKites, ongoing and worsening issues in the region are certain, with significant road and rail delays expected through Ukraine and the countries it shares a border with. Increased border controls and the enforcement of sanctions are said to be complicating factors.

Boileau also warned that these issues could spread, saying “A ripple effect is likely to increase delays & costs around the whole supply chain. For example, shippers from China to Europe may switch to sea to avoid the unpredictability of land routes. This mode is already under strain because of Covid-19, and Ukraine is likely to make that situation worse”.

Global Companies Cease Ukrainian Operations

Unsurprisingly, global logistics firms have ceased operations in Ukraine due to concerns over staff safety. DB Schenker spokesman echoed this fact, stating “We are observing the situation with the greatest concern. What is important is the safety of our approximately 90 employees in the country. We have paused our logistics operations in Ukraine and asked our employees to stay home.”

What’s more, due to the increasingly uncertain fuel prices being experienced, truckers themselves have spoken about the fact that they’re becoming ‘ever-more selective’ in the jobs that they choose. Crude oil prices have risen to their highest levels for several years, passing $100 a barrel recently.

An Uncertain & Critical Time Ahead For Europe

Of course, the wellbeing and safety of the Ukrainian people is of great importance in the face of this aggression and we currently live in a time of uncertainty, the kind we’ve not seen for several decades. However, we must remain focused on doing what we can to ensure the global supply chain keeps moving.

At HGVC, we’ll be continuing to support the UK logistics industry by providing industry-leading, scalable HGV licence acquisition programs. Across our nationwide network of training centres, we have both the expertise and experience to assist, regardless of the size of your organisation.

If you’d like to know more about us and what separates us from our competition, take a look around our website, where you’ll find everything you need to know. Alternatively, to get in touch, click on ‘contact us’ or call us on 0330 818 8888 and we’ll be happy to discuss your training needs.