Asian countries have stalled import-export trade and container shipping with Russia

Import and export trade between Russia and many countries in Asia has been stalled, which has raised serious concerns among exporting countries with the potential for large revenue losses.

Odessa Container Port (Photo: HHLA)

Import and export trade between Russia and many countries in Asia has come to a halt following Moscow's Kyiv attack last week, which has raised serious concerns mainly among exporting nations about the viability potential will lose a significant source of revenue.

Especially the fact that Western countries have imposed various economic and political sanctions on Russia has added to their anxiety because of the uncertainty created about the receipt of payments from Russia. Russian banks are about to be blocked from the worldwide banking system due to sanctions.

Shipping industry officials fear a potential increase in container freight rates in the coming weeks due to rising fuel oil prices worldwide after the war.

Bangladesh

Bangladesh's trade with Russia and Ukraine has begun to feel the effects of the ongoing war. Bangladesh and Russia have two-way trade worth nearly 1 billion USD while with Ukraine, trade turnover is about 350 million USD.

Shipping companies have stopped accepting new bookings for Russian and Ukrainian ports from Bangladesh.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) advises its members against shipping garments to Russia at this time, taking into account financial and political sanctions imposed by Western countries.

In addition, some shipping agency companies have stopped sending goods to Russia and Ukraine, even though the containers are ready for shipping.

Mohammad Ajmir Hossain Chowdhury, deputy general manager of MSC Bangladesh, said some containers were packed with garments but he did not send them out when the war started.

He noted that exporters are concerned about payment problems when various sanctions are being imposed on Russia, so they are also monitoring policies for deciding new orders.

Mohammed Abdullah Jahir, CEO of Saif Maritime Limited, believes that with oil prices rising due to war, container freight rates may increase this month. "Bangladesh’s export and import trade will be affected significantly if the war prolongs," he said.

Thailand

Thailand has more than $3 billion in trade with Russia and Ukraine, which is currently halted due to the ongoing conflict. Thailand has tasked its fiscal policy office with assessing the situation and predicting the possible effects of the war on the country's economy and trade.

Sri Lanka

Russia and Ukraine are important import and export sources for Sri Lanka. The ongoing war has caused the suspension of exports and imports to and from the two countries, further affecting the island nation's foreign currency reserves.

Singapore

Banks in Singapore have stopped financing trade with Russian raw materials amid the war, virtually suspending deliveries between the two countries. In 2019, Russia exported $2.55 billion worth of goods to Singapore while importing up to $624 million, which is now becoming uncertain.

Japan and Korea

Japan and South Korea joined the protest and banned exports and imports to Russia, stopping shipments to the country that invaded Ukraine last week. Japan's Honda company has also announced to stop exporting cars and motorcycles to Russia.

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Source: Phaata.com (According to ContainerNews)

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