Container Shipping Halted in Russia Due to Black Sea Incident

The transport group FESCO has stopped accepting applications for maritime transport through the Black Sea due to the sinking of the container ship "Yarina," which had a capacity of about 1,000 containers, that occurred on August 1. The Black Sea route for Russian trade is practically closed. In July, the number of large vessel trips from Novorossiysk fell by 38% compared to May, with the largest reduction in the tanker segment, where departures were cut in half, and the number of grain bulk carriers decreased by 46%. Logistics companies report the impossibility of replacing the "Yarina," and the route has become unpredictable due to attacks. The halt of the Black Sea corridor forces imports to shift to longer routes, which could lead to a repeat of the 2022 collapse with delays at ports in the Far East and on the Trans-Siberian Railway. Redirecting cargo to St. Petersburg is complicated by the blockade of the Strait of Hormuz and the threat of drone attacks, while land routes cannot compensate for the lost volumes.

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