The Ukraine crisis has presented a fresh blow to global supply chains already reeling from the coronavirus pandemic, with the war between Russia and Ukraine further inflating transportation costs and disrupting logistics networks.
Shipping rates were high even before Russia began its invasion late last month, but freight forwarders are now demanding higher payment to deliver goods, which will result in rising costs for manufacturers.
Japanese manufacturing firms tend not to directly procure goods from Russia or Ukraine. According to government data, on a value basis trade with Russia only accounted for 1.4% of the country’s total last year. But Japanese firms have been affected by the conflict, and will continue to be hit by its far-reaching knock-on effects.