When what is not supposed to happen, happens
Market update: Concordia Maritime comment on the war in Ukraine

It is a dramatic and tragic development in Europe that we are witnessing. The barbaric warfare of the Russian leadership towards Ukraine is causing destruction, refugee flows, death and widespread suffering. It also results in an economic backlash that strikes at its own people. The co-ordinated response of the West redraws the economic and energy policy map right before our eyes. A new curtain of iron seems to be emerging. The consequences are difficult to analyse but will likely last for a long time, or as long as the leadership in Moscow remains unchanged.
How does this affect shipping?
As described in the media, both Ukraine and Russia are large exporters of commodities, affecting both dry bulk and tankers. Today’s sanctions do not restrict port calls in Russia or the transport of Russian goods, however, many companies have chosen to refrain from Russian business.
Historically, sanctions and unrest have often strengthened shipping markets. So far, it is difficult to see a clear outcome. The stock market shares in tankers and bulkers have firmed but not the container segment. Rates for larger tankers initially rose but have since declined and the high oil price is squeezing earnings further. Product tankers are doing better than before the crisis. However, there are large differences between geographical areas. The shipowners who choose to still load in Russia can charge additional premiums.
In the long run, it is sanctions that have the largest impact for the tanker market, and also OPEC’s willingness to compensate for a possible loss of Russian energy production. This in turn affects demand in tonnes-miles, which has a major impact on earnings.
An unknown variable is how the sanctions against the Russian state-controlled fleet in the Sovcomflot fleet will affect the tanker market. With over 100 vessels in the fleet, Sovcomflot is one of the world’s largest tanker companies.
In the longer term, the consequences can be even greater. If, for example, the price of oil and gas continues at current levels, it will probably further drive the transition to more fossil-free energy.
How does the current situation affect Concordia Maritime?
When the war broke out, Concordia Maritime fleet carried no Russian cargo, nor was any ship on charter to a Russian company. Of course, we comply with any sanctions that are in place and since the outbreak of war we have refrained from loading in a Russian ports until further notice. This in collaboration with our customers and many other shipping companies. About 70 of our officers on board Concordia Maritime’s ships are from Russia. Due to the existing sanctions, it is challenging to pay salaries to these hard-working sailors. Together with our technical manager, we are trying to find a solution to this.
In the current situation, the above may change at short notice but that is the status as of today.
This article is shared by courtesy of Erik Lewenhaupt, CEO Concordia Maritime – an international shipping company founded in 1887. Our focus is on safe, sustainable and reliable transportation of refined oil products, chemicals and vegetable oils. The company’s B shares were first listed on Nasdaq Stockholm in 1984. www.concordiamaritime.com
See more news about Concordia Maritime HERE.
Thank you very much.peerreviewjournal
Thank you very much.ebusinessjournals
Thank you very much.biochemistryjournals
Thank you very much.scientificres
Thank you very much.echemistry
Thank you very much.sciencesinsight
Thank you very much.scholarresearch
Thank you very much.contreras-stockman
experience and quality thank you.cantodelfiume
experience and quality thank you.carmagnino
experience and quality thank you.carraihome
experience and quality thank you.ciaautomazioni
Thank you very much.domobios
Thank you very much.ecoledecroly-renaix
Thank you very much.fiducia-partner
Thank you very much.fleurs-velghe
Thank you very much.groupe-saturne
experience and quality thank you.ciandrigiardini
experience and quality thank you.yanezviaggi
Thank you very much.peterivill
Thank you very much.dante
Thank you very much.footballscouting
Thank you very much.recipefy
Thank you very much.ceteau
Thank you very much.brightstartoursworld
Thank you very much.hatip-medikal
Thank you very much.arfada
Thank you very much.hayat-med
Thank you very much.thebestoffortworth
Thank you very much.thebestoflouisville
Thank you very much.thebestroofingcompanies
experience and quality thank you.evertile
experience and quality thank you.hattrennet
experience and quality thank you.fevaagbaatforening
Thank you very much.adrobotengineering
Thank you very much.chesterplastic
Thank you very much.cleansweepcremations
experience and quality thank you.husoghytteplan
experience and quality thank you.inbora
Thank you very much.coltgateway
Thank you very much.connply
Thank you very much.curdent
Thank you very much.futureshockcorp
Thank you very much.gabgadgets
experience and quality thank you.ivar-moe
experience and quality thank you.heimdalbygg
Thank you very much.goldenmoonusa
Thank you very much.gtiuniformcleaning
Thank you very much.hunterremodeling
Thank you very much.hydeparkdenim
experience and quality thank you.korenas
experience and quality thank you.kulsaasvelforening
Thank you very much.islandboatlettering
Thank you very much.islipll
Thank you very much.jcamasonry
Thank you very much.longislandelitelandscaping
Thank you very much.marshallcoffeeny
experience and quality thank you.gcbt
experience and quality thank you.rayscan.ilvoonline
experience and quality thank you.mpulshnk
Thank you very much.minervasbandb
Thank you very much.danapoly
Thank you very much.nycgeneralproroofing
Thank you very much.onyxchb
Thank you very much.ourtowncarwashandquicklube
Thank you very much.rachelsfireisland
Thank you very much.ralphjr
Thank you very much.rememberingbriank
Thank you very much.responsivesales
Thank you very much.rrfamilychiropractic
experience and quality thank you.visserijverduurzaamt
experience and quality thank you.detrecruitment
Thank you very much.qlstransportation
Thank you very much.traditionaltrainsandhobbies
Thank you very much.universalshielding
Thank you very much.unityrubberproductsllc
Thank you very much.unitysurfacingsystems