Maersk The Latest Carrier To Suspend New Bookings To And From Russia
Maersk told The Loadstar today it would join other shipping lines and suspend new bookings to and from Russia.
A spokesperson said the ban would begin “possibly today, possibly tomorrow”, but would depend on arranging plans for shipments already booked which were not in breach of EU sanctions against Russia.
“We are also keen to stress that there will be three exceptions – food, medical and humanitarian supplies,” added the spokesperson. “The exceptions underline Maersk’s commitment to its social responsibilities.
“Regarding the suspension, we do not have a precise time when it will take effect, but will keep customers updated.”
On the first day of the invasion, last Thursday, Hapag-Lloyd became the first line to issue a block on Russian bookings, with Singapore’s ONE announcing the same, yesterday.
However, the world’s biggest carrier by capacity, MSC, has yet to follow suit, telling reporters it was maintaining services subject to a “thorough screening process, with prepayment required for all imports to Russia”.
Maersk’s spokesperson told The Loadstar: “We have had crisis meetings over the last week to see what measures we must take, as we are deeply concerned, closely look at the evolving situation and assess the effect on global supply chains.
“We needed to take time to consider how to affect bookings, but with the civility and safety of our operations already feeling the effects, we decided to act.
“Our focus now is very much on ensuring the practical application of the suspension and keeping it in line with our humanitarian exceptions, and ensuring we keep our customers up to date on what we are doing.”
Other logistics companies have also stopped taking bookings for Russia, including Seko Logistics, while UPS and FedEx have also suspended deliveries to Russia. DHL is still “monitoring the situation”.
UK Enacts Legislation Banning Russian Ships At UK Ports
The UK has now enacted the legislation banning Russian ships from UK ports.
UK ports are being urged to refuse access to Russian-flagged, -registered, -owned or -controlled ships to aid efforts to get President Putin to pull his forces out of Ukraine.
A source also told The Loadstar that the Port of Rotterdam and Dutch Customs are blocking shipments to Russia on all exports, not just those under sanctions. (We will try to confirm this as soon as possible.)
Legislation to enforce the UK ban is expected and transport secretary Grant Shapps has written to all UK ports asking them not to provide access to Russian vessels, adding that “detailed sanctions” against Russian shipping were in the works.
Mr Shapps said: “Russia’s assault on Ukraine is an unprovoked, premeditated attack against a sovereign democratic state. The maritime sector is fundamental to international trade, and we must play our part in restricting Russia’s economic interests and holding its government to account.
“In these circumstances, we do not consider it appropriate for Russian vessels to to enter UK ports.”
CEO of UK Major Ports Group Tim Morris said ports were liaising closely with the government as part of a coordinated sanctions response to Russia’s invasion of Ukraine.
He told The Loadstar: “We must all play our part to stand against an unprovoked, premeditated attack. As ever, our ports remain open to all in safety and welfare critical situations.”
A spokesperson for Peel Ports’ operation at Liverpool told The Loadstar: “Peel Ports Group will continue to follow authoritative advice from the UK government and our approach will fully comply with any provisions across our marine and port operations.”
While supported by port operators and industry bodies, the decision has raised questions over how the measures can be practically implemented.
Both the UK Chamber of Shipping and British Ports Association (BPA) expressed concerns that open port duty and contracts could make implementation “difficult in some circumstances”, but the BPA added it expected it to only impact a “relatively small number of vessels”.
A spokesperson said: “Open port duty and contracts could make this difficult in some circumstances, but we understand government is working on legislation to underpin it.”
The UK Chamber of Shipping said: “It is right government considers a range of hard-hitting sanctions, banning ships with Russian interests from UK ports will put further pressure on the Russian president’s military objectives. It will however be complex and require new legislation. We will work closely with HMG to ensure its measures have the best effect.”
Sources told The Loadstar they expected emergency legislation to be pushed through parliament within a “few days”, but queried Mr Shapps’ “rush” to get this message out, given the “relatively small number” of Russian ships expected to call at UK ports in that time.
One source said there were reportedly 18 close to UK ports, but this did not tally with her own estimates. VesselsValue said today that there are currently “60 Russian-affiliated vessels heading for UK and European ports between 1st-4th March 2022, the majority of which are tankers and small dry vessels. Of these 60 , four are bound for UK ports; two tankers, one LNG vessel and one small dry carrier.”
The source added: “The letter has political fingerprints all over it, as some of the language is quite unclear. What does “connected to Russia” mean? How are we meant to find this out and then prevent them coming in?
“If a port refuses a vessel with legitimate cargo that hasn’t been sanctioned, it would be open to legal suits. It just doesn’t really make sense, with the emergency law due imminently.
“I support the move, but if this emergency legislation is being pushed through at the rate we think it is, there really isn’t any need to make this request, and the law is the best way of doing it.”
According to the BPA, the UK handled some 12.6m tonnes of cargo to and from Russia in 2020, the bulk of which was hydrocarbons.
American Pilot Refuses To Board Russian Ships
The senior ship pilot of a major American port told authorities today that he refuses to board any Russian flagged ships that enter the harbor. This comes on the same day the UK transportation minister called on all UK ports to deny access to any Russian “flagged, registered, owned, controlled, chartered, or operated vessels”.
In an email provided exclusively to gCaptain, the senior pilot asked west coast port authority officials to notify him if any Russian Flaged ships request entry into the port. The email, addressed to the manager of marine operations of the local port authority, states that the pilot refuses to board Russian ships. The port official responded quickly stating that he will take the message to the port’s executive team.
“The attack on Ukraine and escalating threats of nuclear war against the United States as part of NATO has altered the Russian Master/American Pilot relationship,” said the senior pilot in an exclusive interview with gCaptain. “Much of what we do as pilots require trust and teamwork. I have heard Russians support of Putin and don’t believe it’s in America’s best interest to assist them in generating profits.“
If this pilot’s request is approved, it could put pressure on increasingly congested American Ports, as well as Russian shipping interests.
gCaptain contacted a number of pilot associations around the United States. The majority said the issue had not come up yet, but would be reviewed at upcoming port meetings. Don Marcus, president of the Master Mates and Pilots union, said the issue has not yet been discussed.
“In Florida our pilots can not make that call directly as it would be a violation of state law,” said Laura DiBella Executive Director at Florida Harbor Pilots Association. “We will, however, discuss the issue with our pilots and federal officials.”
In the United States most pilots are licensed by Individual States and most pilots say it’s not clear if they can refuse to board ships owned or operated by specific countries.
“The decision not to board a Russian ship would have to be approved by the State or Federal Government,” said an executive on the board of another large west coast port. “We would refuse to pilot a sanctioned ship but we don’t have the resources to track down vessel ownership so that order would have to come from a government official.”
According to the AIS ship tracking service Fleetmon, there are currently no Russian flagged ships near an American port. It is not clear how many Russian owned, controlled, chartered, or operated vessels are currently in American waters.
“We don’t see many Russian ships anyway but some Russian crews and a large number of Ukrainian seafarers,” said one senior California Pilot. “The few Russians and Ukrainians I have talked with are all furious at Putin.”
Container Lines Suspend Russia Bookings
Ocean Network Express (ONE) on Monday suspended container bookings to and from Russia hours after Maersk said it was considering doing the same in response to Western sanctions on Moscow following its invasion of Ukraine.
Russia’s assault on its neighbor, which Moscow says is a “special operation,” is the biggest state-to-state invasion in Europe since World War Two.
“Booking acceptance to and from St Petersburg, Russia is suspended with immediate effect until further notice whilst we evaluate the operational feasibility,” Singapore-headquartered ONE said in a customer advisory on Monday.
ONE added that it had also suspended bookings for the Russian port of Novorossiisk as well as the Ukrainian container port of Odessa.
Germany’s Hapag Lloyd said on Feb 24 it had issued a temporary suspension on bookings for Russia and halted sailings for Ukraine. A Hapag spokesperson said on Monday it was “due to the developments we have seen last week and to ensure we comply with any sanctions imposed”.
Meanwhile, Maersk said on Monday it was closely monitoring the fast-evolving sanctions and restrictions imposed against Russia, and making preparations to comply with them.
“Our preparations include a possible suspension of Maersk bookings to and from Russia on ocean and inland,” it said in a statement.
Read Also: UK May Close Ports To Russian Ships
In a coordinated response, the United States, European countries and others have made the unusual move of targeting Russia’s central bank with financial sanctions and put limits on cross-border transactions by the country’s largest lenders.
Maersk, which handles roughly one in six containers shipped worldwide, said it was focusing on safeguarding types of containers and cold chain operations that “include important goods such as groceries and pharmaceuticals”.
Maersk said limitations to operations over Russian air space would impact its air services.
A spokesperson declined to elaborate on the possible measures and said the company expects to provide further information later on Monday.
The company last year generated roughly 2.5% of its total revenue from Russia. It operates container shipping routes to St. Petersburg and Kaliningrad in the Baltic Sea, Novorossiysk in the Black Sea, and to Vladivostok and Vostochny on Russia’s east coast.
Maersk has been active in Russia since 1992.
Last week, the company halted all port calls in Ukraine until the end of February and has shut its main office in Odessa on the Black Sea coast.
Russia calls its actions in Ukraine a “special operation,” designed not to occupy territory but to destroy its southern neighbor’s military capabilities and capture what it regards as dangerous nationalists.
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