War in Ukraine Squeezes Shipping
More than one year after Russia’s initial invasion of Ukraine, global supply chains are feeling the impact.
In the months after the invasion, total vessels moving in and out of Ukraine dropped from 109 in January 2022 to just two in June 2022, according to data tracked by project44. Combine the lack of vessel movement with trade sanctions on Russian exports, and you have a recipe for global inflation and commodity price spiking.
To mitigate these challenges, many companies are diversifying their supply chains by changing from single to multi-supplier sourcing. In some cases, they are shifting from offshoring to nearshoring.