Bloomberg: Global Trade Is Already Suffering From War, Kiel Institute Says

Views: 2

(Bloomberg) — Nearly all economies are already seeing a drop in international trade tied to disruptions triggered by Russia’s war in Ukraine, according to the Kiel Institute for the World Economy.

© Bloomberg A gantry crane transports a shipping container at Behala inland port in Berlin, Germany, on Tuesday, Jan. 26, 2021. A global shortage of shipping containers that’s sent ocean freight rates skyrocketing shows signs of easing, according to an index that tracks the steel boxes used to transport 90% of the global trade in goods.

Most Read from Bloomberg

• Ukraine Update: U.S. May Go Alone on Russia Oil Ban; Crude Soars
• Putin’s Ruble Workaround Still Leaves Bond Payments in Doubt
• Stakes Rise as Putin Says His War in Ukraine Will Continue
• Ukraine Update: U.K. Premier Says More Pressure Needed on Putin
• Oil Shoots Near $130 as Chance of Russian Ban Spurs Crisis Fears

The new report Monday from the German think tank shows Russia is being hurt the most by the sanctions — with a projected 11.8% drop in exports in February compared a month earlier.

The U.S. saw a 3.9% decline in shipments abroad, the European Union a 2.8% fall and Germany a 3.8% slide, according to the report. China posted slight growth in exports of 0.3% but that could be impacted going forward by the rapid spread of the omicron variant, it showed report.

“The February figures give a taste of the economic consequences of the Ukraine war,” said Vincent Stamer, head of the Kiel Trade Indicator. “Increased customs controls to check compliance with sanctions against Russia may additionally lead to delays in maritime trade.”

In the index, Ukraine is included with other members of the Commonwealth of Independent States excluding Russia. This group had a 4% drop in exports and a 2.3% increase in imports.

“However, position data from container ships show that the Ukraine is largely cut off from international maritime trade,” the report stated. “No large container ship has called at the country’s most important port” — Odesa on the Black Sea, since the invasion began on Feb. 24, it said.

Most Read from Bloomberg Businessweek

• The End of the Oligarch Era Nears With Putin’s Miscalculation in Ukraine
• Elite International Schools Have a Racism Problem
• The Bond King’s Genius Was No Match for His Ego
• Flight Routes Are Being Thrown Into Chaos With Closure of Russian Airspace
• A Billionaire’s Heir Hangs Up His Healing Crystal to Fix Capitalism

©2022 Bloomberg L.P.

Global Trade Is Already Suffering From War, Kiel Institute Says (msn.com)