FreightWaves: Russia-Ukraine Conflict Could Cause Major E-Commerce Disruptions

Mar 04, 2022

(Image Source: Pexels)


The Russian invasion of Ukraine has rattled global supply chains that have yet to recover from the pandemic chaos. Western sanctions have hampered trade with Russia, putting pressure on carriers and logistics providers regarding cargo capacity and delayed deliveries. As of last week, a few CPG companies have already stopped shipments to the country, including Nestle and Coca-Cola. The same was also true for carriers and logistics providers such as FedEx and UPS.

It doesn’t stop there — international shippers like A.P. Moller – Maersk and e-commerce marketplaces are part of the exodus too. While eBay has announced suspension of sales to consumers based in Russia and Ukraine, Sendle has released a statement saying that it would halt all international deliveries to Russia and Belarus. Even credit companies like Visa and Mastercard are taking a stand by removing Russian financial institutions from their networks.

Did you know that 59% of shoppers would buy more for free shipping?
Sign up now to unlock all our data-driven reports!

“Military conflict changes the calculus of any business who would normally deliver packages to consumers,” said Dan Varroney, CEO of Potomac Core Consulting“Life safety is at the top of every list for employers…Until hostilities cease, it’s safe to assume that companies will not complete e-commerce deliveries into these areas.”

Taking all these factors together, we can expect the e-commerce slowdown to extend beyond the region of conflict. For one, higher inflation rates have the potential to reduce the flow of e-commerce shipments throughout the entire supply chain. According to Gregg Healy, Executive Vice President of Savills“Freight costs had already risen exponentially (prior to the invasion)…(and) given that Russia is a major exporter of crude oil, recent events stand to exacerbate the already challenging situation.”

Source: Russia-Ukraine conflict could lead to global e-commerce disruptions

For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.

Share this with your network

Also worth your time

Follow us on LinkedIn
Stay connected with us

Track your parcel here

More discoveries

Unpacking Supply Chain Digitization for Micro-Retailers

Jul 04, 2022

Business Wire: Convoy Strategically Expands Alliance with MercuryGate

Jul 01, 2022

Funding Roundup: Fresh Funds Raised by Solv, ShopUp, Nautical Commerce and Others

Jul 01, 2022

TechCrunch: Pinterest Elects Google Exec, Bill Ready, as New CEO

Jun 30, 2022

Tech in Asia: Zomato Signs Acquisition Deal with Blinkit for $578M

Jun 29, 2022

Supply Chain Quarterly: Walmart Inducts High-Tech Tablets in Freight Trucks

Jun 28, 2022

State of E-Commerce in Germany 2021

Jun 28, 2022

Guest Post: 5 Effective Ways Technology Enhances Customer Retention

Jun 27, 2022

Alcott Global Podcast: Supply Chain Tech is Here to Stay

Jun 27, 2022

Business Wire: Shipbob Appoints Kamal Sundar As New Supply Chain Leader

Jun 24, 2022

Guest Post: Ultimate E-Commerce Strategies for the Summer Season

Jun 24, 2022

Guest Post: 9 Important Practices for Proper Inventory Management for Startups

Jun 23, 2022

Logistics Management: Fedex and Fourkites Join Forces for New Supply Chain Capabilities

Jun 23, 2022

Retail Dive: Simon Pilots Innovative Search Tool for Shoppers

Jun 22, 2022

Top E-Commerce Trends to Watch this Summer

Jun 21, 2022

Your Story: Delhivery Introduces Same-Day Deliveries for D2C Companies

Jun 21, 2022

Guest Post: Artificial Intelligence in E-Commerce: What’s Next

Jun 21, 2022

Guest Post: How Digital Marketing & Advertising Can Help Grow Your eCommerce Business

Jun 20, 2022

Funding Roundup: New Funds Secured by Zoovu, Cartlow, Khazenly and Others

Jun 17, 2022

Guest Post: 11 Ways to Optimize Your Online Store for Better Conversions

Jun 17, 2022

Apex Insight: Doddle Rolls Out Automated Returns Kiosks

Jun 17, 2022

Unpacking Returns Management in E-Commerce

Jun 17, 2022

Interview with Wilfred Lam: Omnichannel Logistics at LUXASIA

Jun 16, 2022

Fashion Network: Pimberly Strengthens Board with New Member, Dr. Beatrice Lafon

Jun 16, 2022

Yahoo News: Amazon Sets to Launch Prime Air Drone Deliveries

Jun 15, 2022