Novorossiysk is finished; Russia’s largest companies refused to ship cargo across Black Sea
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Following the sinking of its container ship, the Yenisei, Fesco, one of Russia's largest transportation groups, has officially ceased accepting new orders for shipments across the Black Sea. The vessel, which had a capacity to carry approximately 1,000 containers, went down on August 1st after facing attacks from naval drones that have increasingly targeted merchant vessels in recent months. This incident marks a significant escalation in risks along this critical trade route, prompting major logistics operators like Fesco and the Delo Group to halt operations as they explore limited alternative delivery options while implementing additional safety measures.
The closure of the Novorossiysk route forces Russian imported cargo to redirect primarily toward ports in the Far East and St. Petersburg, a shift that threatens to overwhelm existing infrastructure once again. Industry experts warn that this rerouting could replicate the severe bottlenecks experienced earlier in 2022 when all imports funneled through similar channels due to geopolitical tensions in the Middle East. Although rail and road routes exist as alternatives, their current volume capacity is significantly insufficient to handle the surge, leading to fears of months-long delivery delays that would further congest Far Eastern ports and disrupt supply chains for essential goods like fruits, vegetables, household chemicals, and home items from China.
The instability on this maritime corridor has been growing steadily since June and July, when attacks predominantly targeted bulk carriers transporting grain and tankers carrying oil products rather than just container ships. Data indicates that the number of large vessel voyages departing Novorossiysk in July dropped by 38% compared to May, with a steeper decline observed for specific cargo types such as oil tankers down 50% and grain bulk carriers down 46%. Consequently, finding space for containers has become increasingly difficult, making delivery times unpredictable and driving freight forwarders to actively discourage clients from utilizing the route. As these attacks continue to make shipping via Novorossiysk unsafe and unreliable, Russian businesses face a precarious situation where they must choose between accepting significant delays or abandoning this vital trade artery entirely.
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Fesco, one of Russia's largest
transportation groups, announced it has
stopped accepting orders for shipments
across the Black Sea following the
sinking of its container ship, the
Yenisei. Fesco is working on additional
safety measures and exploring
alternative delivery options. These are
limited and logistics professionals fear
this will likely result in further
traffic jams at Far Eastern ports. The
Yenisei, which had a capacity of
approximately 1,000 containers, sank on
the night of August 1st. On the night of
August 4th, naval drones attacked the
merchant vessel Nadezhda, which was en
route from Samsun, Turkey to
Novorossiysk with a cargo of fruits and
vegetables, as well as another vessel
sailing from Turkey. "As we feared, the
Novorossiysk route is finished," says an
importer of household chemicals and home
goods from China. He notes that Fesco
was one of the largest Russian operators
on this route, along with the Delo
Group. Back in March, when the war in
the Middle East began and the Strait of
Hormuz was closed, representatives of
Delo Group warned that Far Eastern ports
could face a surge in shipments this
year comparable to 2022, [music]
when all imports flooded through that
route. Now, Russian imported cargo has
even more reasons to move to the Far
East, argues an employee of a major
logistics company. That boom overwhelmed
ports and the Trans-Siberian Railway,
leading to months-long delivery delays,
he notes. And this scenario could also
repeat itself. But there's no choice.
The halt to container shipping through
Novorossiysk means that the bulk of
imports will go primarily to ports in
the Far East and [music] St. Petersburg.
There are also rail and road routes, but
they're still significantly behind in
terms of volume, and St. Petersburg is
also [music] unsafe. Shipments via
Novorossiysk were already challenging.
In July and August, it was difficult to
find space for containers, and there was
simply nothing to replace the Yamal 902,
according to a freight forwarder working
with international shipping. Due to the
attacks on ships in June and July, the
route became unpredictable in terms of
delivery times. "We've been discouraging
clients from using it for over a month
now," adds his colleague. Previously,
attacks had primarily targeted bulk
carriers carrying grain and tankers
carrying oil products. Ship schedule
monitoring shows that the number of
large vessel voyages from Novorossiysk
in July decreased by 38% compared to
May, including oil tankers by 50% and
grain bulk carriers by [music] 46%.
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