Ukraine: Operational update from DSV, March 3th, 2022

At DSV, we follow the Russian invasion of Ukraine with great concern, while the security and well-being of our employees remain the top priority across the organization. 

The temporary stop to our operations in Ukraine is still in force, but DSV is involved in several relief aid projects in the neighboring countries and across Europe to support the people of Ukraine.

As the situation continues to evolve, we monitor the implications for our operations closely. To best serve our customers, we are in steady dialogue with our carrier partners to mitigate the effects of the situation as much as possible while complying with the ever-evolving sanctions and restrictions imposed against Russia. At present, DSV remains operational in Russia. 

On 2 March, the EU announced new sanctions against Belarus, targeting individuals and some economic sectors. More details of these penalties and their implications will be published once official.

Following our previous advisories, please find below an operational update across transport modes as of 2 March. 

Rail

Due to the uncertainty of the situation in Russia, we have decided to stop our rail services between Asia and Europe. Cargo that is currently in transit will still be moved, but it will not be possible to make new bookings. Our local teams are ready to find alternative solutions for customers that will be affected by the stop to our rail services.

Air

Due to the closure of Russian air space, rates are going up, but so far only on some corridors. Free sale capacity has immediately changed to express rates with several carriers going into destinations in Asia. Mainly to China, Japan and Korea.

We have received notification from some carriers that a war surcharge will be implemented across the board on all lanes. The surcharge is an average to make up for added flying time to avoid Russian air space on specific routes. We expect all airlines will follow this example. 

Sea

Several carriers have decided not to call any ports in Russia and stopped the acceptance of orders to and from Russia until further notice. This booking stop, however, does not impact a few selected types of goods such as food, medicine and emergency aid.

By the omission of Russian and Ukrainian ports, many schedules are subject to changes or disruptions, but outside of Ukraine and Russia, we do not observe any operational challenges right now. 

Road

All road operations to, from and inside Ukraine has stopped, but there are currently no sanctions on Ukraine, except for the Russia-controlled regions of Donbas (Donetsk and the Luhansk) and Crimea. Cargo in transit bound for Ukraine has been stopped and will return to origin. 

Operations to/from Russia is limited. Norway still operate groupage to Moscow via Finland. All other operations only upon request. 

The situation is expected to affect road operations in other countries in the region. Significant operational and capacity challenges will occur. Driver shortage might intensify on the remaining European continent, as Ukrainian truck drivers return home. As a result, we also expect a financial impact on road freight rates. We are at this stage not able to provide an exact estimate of the impact.

XPress

All express operations to and from Ukraine and Russia has been stopped. We are currently experiencing an increase in fuel surcharge. 

Contract logistics

All DSV warehouse operations in Ukraine have been stopped until further notice. In Russia, we continue to operate our warehouses as close to normal as possible.

Stay informed about sanctions 

As the current sanctions against Russia apply to a wide array of goods, it is not possible to make an exhaustive list of the products that are comprised by the current sanctions. Customers that have cargo in transit to or from the occupied territories or Russia have a responsibility to keep themselves informed about applicable sanctions or restrictions that will impact their products. 

For general updates on the situation and our latest advisories, please visit
https://www.dsv.com/nb-no/om-dsv/press/news