Ukraine Uncertainty Generates Freight Rate Risk

Local shipping law firm highlights possible political fallout CRIMEA includes five of Ukraine's 18 seaports, but handled well below 10% of the country's seaborne cargo throughput in 2013, according to data released by a local shipping law firm following the Russian occupation of the peninsula.

Even so, Arthur Nitsevych, managing partner of Odessa-based Interlegal, warned of the risk of higher freight rates on account of the stand-off, and the risk that the international shipping community could divert cargoes to mitigate uncertainty. Data from Ukrainian sea ports administration indicates that so far this year, Ukrainian seaports have handled just under 23m tons of cargo, broadly in line with the same point in 2013.