Russia and Ukraine close ports as war escalates
Russia suspended commercial shipping in the Sea of Azov on February 24, while yesterday news agency Reuters said Ukraine would keep its own ports closed until the end of the Russian invasion.
Ukraine reported blasts in the port city of Mariupol, which had been recovered from Russian troops and was now back in Ukraine’s hands. Mariupol is most highly at risk, said the risk assessment firm A2 Global Risk, as it is the Donbass region in the east of the country bordering Russia.
The port of Odessa had already been hit, the firm said.
“In 2020, the port of Mariupol handled seven million tonnes of cargo, making it the fifth busiest in the country,” said A2 Global Risk. “Shipping companies using ports in the Sea of Azov will be unable to collect goods from the affected ports due to the recently imposed maritime restrictions, while vessels currently in the sea may be prevented from leaving the area,
“Shipping companies should also check their ‘war risk’ status.”
On February 26, International Maritime Organization secretary-general Kitack Lim said the IMO fully supported the UN’s call for hostilities to end immediately.
“I am gravely concerned about the spill-over effects of the military action in Ukraine on global shipping, and logistics and supply chains, in particular the delivery of commodities and food to developing nations and the impacts on energy supplies,” he said.
“Shipping, particularly seafarers, cannot be collateral victims in a larger political and military crises – they must be safe and secure.”
Reuters said one of the side effects of the war was the soaring cost of insurance for merchant ships sailing through the Black Sea, with additional ‘breach’ premiums payable for vessels entering high-risk areas, on top of their annual war risk cover.
Quoting an unnamed insurance source, the news agency said the additional premium rate for seven days could be up to 5% of insurance costs, which would mean hundreds of thousands of dollars for a ship voyage, depending on destination.
“Given the Russian offensive from land, sea and air, it would not be surprising if some insurers will be reluctant to provide cover,” it quote one source as saying.
