The logistics’ eastward pivot and the sanctions have led to an acute need of the domestic fleet expansion. Containerships are needed to unload the Far East routes and to organize a container line in the Arctic.

Lloyd’s List has presented its Outlook 2023, a report on shipping and related segments. According to the analysts, the long-term consequences of the geopolitical, energy and economic shocks of 2022 are hard to foresee — but for shipping, there is at least the possibility of a more optimistic reading of the runes

Having partly recovered from the turbulence caused by the coronavirus pandemic, the shipping community expected the freight rates to be more predictable and the congestion in ports to be fixed in 2022. However, since February, life has made it adjustments in the world trade logistics again. IAA PortNews review is focused on how Russian business has passed through this year and what is expected in 2023.

RF Government continues discussing organization of railway transportation in the eastward direction. The Ministry of Economic Development expects the eastward railway traffic to grow by 60 million tonnes by 2030. The market players consider this forecast to be too low. Analysts say incorrect planning of the country’s key economy focused ministry is to reduce the scale of the future infrastructure projects.

The outgoing year was a turning point for the entire Russian transport and logistics industry with its eastward pivot setting new priorities for the port infrastructure development.

Previously, the Northern Sea Route was considered mainly as a shipping route for the export of hydrocarbons from the Arctic projects. With Russia making a logistics ‘pivot’ toward the East region, the NSR importance for transit and coastal shipping increased dramatically.

Saint-Petersburg Government has initiated the exclusion of the border check point at the passenger terminal on Vasilyevsky island from the limits of Great Port of Saint-Petersburg. According to PortNews, the Transport Ministry’s commission may consider this issue before the end of 2022. The passenger terminal is run by Marine Facade which could lease out the territory to finance its activities amid the absence of international sea cruises to Russia’s Baltic region.

Russian economy and, consequently, its transport segment is undergoing substantial changes. The trade with western companies is rapidly shrinking while the redirection of cargo flows to the markets of other regions is hindered by infrastructure problems and insufficient national fleet

FSUE Rosmorport has summed up the results of the competition for providing agency services on attraction and transportation of passengers and cargoes by ferries between the ports of Ust-Luga and Kaliningrad until 2024. The winner, Oboronlogistics LLC, which is under sanctions, is already running railway ferries of the ferry complex. Lawyers believe the risk of secondary sanctions is not likely to affect those involved in cargo transportation.

Tectonic changes are underway in the global shipping market: freight rates for containers are falling, those for tankers on the rise. Russia is working towards organizing deep sea routes to China and other Asian countries as well as towards redirecting oil exports.