Ukraine Crisis Creates Logistics Headaches for Air Cargo, Airlines

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03-Mar-2022

  • By: Go Transport Canada
  • Date:03-Mar-2022
Ukraine Crisis Creates Logistics Headaches for Air Cargo, Airlines

Airspace restrictions from the economic war between the West and Russia over the invasion of Ukraine is adding logistical complexity and cost for the air cargo sector and passenger airlines still coping with COVID-related ups and downs in business activity. The conflict is also driving up the price of fuel, which represents a quarter or more of airlines’ cost base.

 

The European Union, Canada, the United Kingdom, and Baltic and Nordic states in recent days have barred all Russian-owned, -registered and -controlled aircraft from overflights of their territories. Russia has responded, banning three dozen airlines from its airspace.

 

The new rules will require carriers to take more circuitous routes to avoid airspace around Russia, as well as Ukraine, Belarus and Moldova, to avoid the possibility of accidental missile strikes.

 

Routes over Russia between Asia and Europe are optimal for many airlines in terms of the shortest flying time and fuel consumption. Swinging north, or more likely, south through the Middle East and up into Southern Europe will be less efficient but can be done by many carriers without too much difficulty, according to air logistics professionals.

 

Some airlines are cancelling flights because of the additional transit times while they figure out how to adjust to the new circumstances.

 

Read more in an article from American Shipper.




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