What lies in store for international shipping according to the UN

Armed conflict in Ukraine could mean that 1.5 million containers sent every year by rail from Asia to Europe via rail could be sent by sea, according to the United Nations Conference on Trade and Development (UNCTAD). The authors of the report point out that both Russia and Ukraine are key countries along the Eurasian Land Bridge. Trade routes between Asia and Europe via land and air have been impacted by questions of security as well as the fact that many countries have closed their airspace off to Russia with Russia, in turn, closing its skies in retaliation. Over the last two years, exporters have increasingly chosen to send their goods by air, rail and road avoiding the record-heavy traffic of goods sent by sea. "In 2021, 1.5 million ocean containers of cargo were shipped by rail west from China to Europe. If the volumes currently going by container rail were added to the Asia – Europe ocean freight demand, this would mean a 5 to 8 per cent increase in an already congested trade route,” states the report. The impact of the disruption could lead to an increase in the cost of freight transport and rising consumer prices for certain goods in Europe.