'It caused carnage to the supply chain and that was pre-Covid. 'Maersk, one of the world's biggest shipping lines were attacked themselves back in 2017 - rumoured from Russia actually, and it shut their whole shipping system down around the world. There was also the looming prospect of cyber crime. It has withheld oil and gas supplies to Europe in the months prior to the invasion contributing to rising oil and gas prices.Ĭountries around the world are now working together to release 60 million barrels of oil from emergency reserve stocks in an effort to stymie the volatility.īut Edwards said it would not just be fuel prices putting pressure on the cost of doing business - there was also congestion and the inability to access some ports in the region. Russia is the second largest crude oil producer in the world and the second largest oil exporter. The price of Brent Crude has risen 20 percent since the beginning of February. I'd expect fairly soon if it hasn't happened already in some markets, a thing called an emergency BAF being introduced by shipping lines to cover the rapidly rising price of oil.' 'It's almost immediate, so the bunker adjustment factor which is basically a fuel surcharge that the shipping lines charge. The president of the Customs Brokers and Freight Forwarders Federation Chris Edwards said the flow on effects from rising fuel costs for companies and in turn - their customers - was certain.

Flow on effects environment