HomeNewsGlobal Supply Chain in Jeopardy With Hundreds of Ships Trapped Due To Russia-Ukraine War

Global Supply Chain in Jeopardy With Hundreds of Ships Trapped Due To Russia-Ukraine War

by Jonathan Howard
(Photo by Markus Scholz/picture alliance via Getty Images)

Things don’t look so great for the global supply chain. Since Russia invaded Ukraine, ships have been stuck at sea. And, it doesn’t look like things are going to get better any time soon. Some ships have been hit by missiles and others are floating with nowhere to go.

Details to Know

  • A ship from Bangladesh was struck with a missile, killing one and injuring others
  • Transportation through the Black Sea has been hindered due to the war
  • 200 ships are stuck at Ukrainian ports
  • The global grain supply chain will be hurt the most

As if there wasn’t already enough working against supply chains, the war in Ukraine has been a further detriment to the issue. A Bangladeshi crew was on the MV Banglar Samriddhi last Wednesday when their boat was struck by a missile. This is the fifth merchant ship to be struck amid the conflict.

One crew member died and there were several others that were injured due to burns. The Black Sea has not been nearly as productive as far as sea routes go. There are dozens of ships at the port of Mykolaiv in Ukraine. Among those boats stranded at various Ukrainian ports, there are 3500 sailors on board 200 ships.

According to maritime historians, there are likely more stranded boats around the globe now than at any point since World War II. What it comes down to is corn prices as well as wheat. Ukraine makes up 16% of the global corn export supply. Ukraine and Russia combined are responsible for 30% of global wheat exports. To give an idea of how big of a deal that is, wheat prices have already gone up 55%.

Salvatore Mercogliano, a professor at Campbell University broke down the severity of things.

“This shock to global grain supply is the biggest supply shock since the OPEC oil cuts in the 1970s,” the professor said. “It will mean food shortages in the Middle East and Africa, and inflation across the world.”

Global Supply Chain in Danger as NATO Warns Ships

Right now, NATO is warning that there is a danger for any ship in the Black Sea. There has not been a NATO ship in the Black Sea since the month before the invasion. And, the International Maritime Organization said that they will have an emergency session on March 10 and 11. The meeting will address the impact the war has made on shipping and the global supply chain.

With the war continuing, there is no telling when supply chains will return to normal. With two years of pandemic-related issues, this is another hit that will be felt all over the world. At the grocery and markets at large.