DSV and DB Schenker suspend business in Ukraine
Due to the further escalation of the conflict between Russia and Ukraine, Ukrainian ports have been closed and railway transportation has been interrupted.
Previously, a number of liner companies, including Maersk, Mediterranean Shipping, CMA CGM, Hapag-Lloyd, and ONE, have suspended operations in Ukraine.
The latest news is that since February 28, the EU has closed its airspace to Russia, and Russia has announced that it has closed its airspace to 36 countries and regions. This will result in the cancellation of some international flights and massive delays in cargo transportation.
Affected by this, many freight forwarding giants announced to adjust their business, and the transportation of goods in Ukraine and surrounding countries will be affected to varying degrees.
The freight forwarding giant DSV has issued an announcement saying that due to the declaration of martial law in Ukraine, the company has suspended all operations in Ukraine until further notice.
Flemming Ole Nielsen, Executive Vice President of Investor Relations, Corporate Marketing and Communications at DSV, said: “We have around 230 employees in Ukraine, where we have closed our office and asked employees to comply with the requirements of the authorities. In addition, all Employees have been paid for February and March to make sure they can buy necessities.”
DSV also analyzed that with Ukraine shutting down ports and stopping air routes, it is expected that other freight methods will also be affected. The situation in Ukraine has been declared a force majeure, and the company expects that the surrounding area, including Russia, and all shipping methods, will be significantly challenged.
As of February 27, local time, DSV is still communicating with air carriers to seek alternative transportation options to safeguard customers’ freight needs.
In addition to DSV, another freight forwarding giant, DB Schenker, has also suspended operations in Ukraine and asked its employees in Ukraine to stay at home.
According to the announcement, in terms of cross-border land transport business, DB Schenker has suspended all business involving Ukraine; LCL business involving Russia has delayed delivery; LCL business involving Belarus is operating as usual; Direct freight services are only based on relevant upon request and subject to availability.
In terms of cross-border air freight business, DB Schenker suspended direct flights between Russia and continental Europe.
DB Schenker reminds customers that the Russian-Ukrainian conflict may have an impact on cross-border shipments in other Eastern European countries. The company added: “As of now, our freight operations in Eastern European countries are operating as usual. At the same time, we are also developing contingency plans for a number of different scenarios.”
In addition to large forwarding companies such as DSV and DB Schenker, other forwarding companies operating in the region and surrounding areas have also been affected.
Bolloré Logistics said it had suspended all freight services in and out of Russia and Belarus. In addition, in the Asia-Europe land transportation business, rail freight services and road freight services involving Russia and Belarus have been suspended.
The company said demand for freight to Ukraine, whether by air, sea, road or rail, would be suspended due to the escalating conflict. Shipments to Ukraine can only arrive at the last port or airport outside the country, and the shipper will be notified directly of this adjustment.
GEODIS said in its latest supply chain impact assessment that the company’s current services to and from Ukraine, Russia and Belarus are only on a case-by-case basis.
Due to ongoing changes in the local situation, GEODIS cannot promise specific delivery times and booking prices, saying the current situation could lead to delays in shipments or even a complete suspension of services.
Currently, GEODIS has suspended all services involving the Crimea/Sevastopol, Donetsk and Luhansk regions.
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