Current situation of foreign trade due to the conflict between Russia and Ukraine

It is known that the confrontation between Russia and Ukraine is affecting various points of the economy; and the export and import market is not being the exception. With port closures and the ban on flights near the Russian country. This causes an inflation in the price and delays of the merchandise in ports affecting the rest of the world.

Paraguay has problems importing potassium chloride

The confrontation between Russia and Ukraine is affecting the import of potassium chloride to Paraguay. These products are used to make detergents and household cleaners in general. As they are also used for the preparation of medicines for hospital use.

Paraguay could also import this product from other countries such as Brazil, Belarus and Canada. But of these, he can only import a small part compared to the large quantities that he made from Russia.

The President of Paraguay ordered the search for other markets for meat exports instead of Russia

Carrying out the conflict between Ukraine and Russia. President Mario Abdo Benítez; I request the search for new markets for the export of Paraguayan meat which goes to Russiawhich is 20% of all exports. And among other points, they were touched upon during the meeting with Finance Minister Óscar Llamosas in the company of his deputy ministers; to chat about shipping the meat to the Russian market.

In said meeting the impact that stopping meat shipments to Russia could have on the economy due to the conflict against Ukraine was studied.

Paraguay is in search of new potential markets. In order to pay off the percentage of meat that it stopped sending to Russia, which is 20%, and redirect it to other markets. Paraguay has around 76 authorized markets, of that group only with 25 markets it has a permanent link. This semester the advance for the opening in the United States market is awaited .

The Russia-Ukraine conflict could greatly harm Chile in terms of mussel exports

The Guild Association of Mussel Farmers of Chile (AmiChile) expressed its concern about the possible consequences that the conflict between Russia and Ukraine could bring; which are the important destinations for the export of said product.

So much so that around 24,000 tons of mussel farming production are for those countries alone; to be more exact, of the 95,000 tons they produced in 2021, 17,000 tons go to Russia and 5,000 to Ukraine.

This makes Russia the main buyer country; added to the quantity imported to the Ukrainian market, it creates an uncertain scenario for the Association of Mussel Farmers of Chile (AmiChile).

It is worth noting that the mussel industry generates 17,000 jobs; 12,000 direct and 5,000 indirect.

Major shipping lines suspend reservations in Russia and the European Union prohibits the landfall of Russian-owned ships

Since March 1, the lines MSC, Maersk and CGM, suspended the transport of containers to and from Russia, to further increase the isolation of the country. While the invasion of Ukraine by Russia generates a large emigration of international companies.

On the other hand, CGM indicated that its employees who reside in Ukraine are safe and work only from home; and that they are also taking all measures to protect their crew members, personal data and those of the company. company and its computer systems.

Freight costs could double or triple due to the war between Russia and Ukraine

US experts speak of a possible increase in maritime rates due to the invasion that Ukraine is suffering. As for airfreight rates, they could increase even more.

The maritime rates that could be given for a 40-foot container are from USD 10,000 to USD 30,000; at a time when the global supply chain is recovering from the pandemic.

Since the pandemic, ocean shipping rates have broken record highs. When it was recovering from the blow of the pandemic, another event returns that will hurt prices even more.

We advise you with your merchandise shipments during the conflict we are experiencing.

Do not hesitate to contact us to receive help from the best professionals; in a company with more than 28 years of experience in the field logistic. We also have freight agents in the main ports and airports in the world; ready to help you in the midst of the situation we are going through and it affects us all.