UK and US sanction more elements of Russian Shipping

TOKYO: Western leaders starting their three-day G7 Summit in Japan announced a broad new wave of sanctions targeting Russia designed they said to further crippler the Russian economy and limit its ability to finance and pursue the war in Ukraine. While much of the shippinginfrastructurehasbeenundersanctionsformore than a year, new elements are being included in the next wave of sanctions which also increases efforts touching on the energy, metals, defense, transport, finance, and other sectors. The United States is expanding its efforts into services ranging from architecture to engineering, construction,andmanufacturing.

“Our collective efforts have cut Russia off from key inputs it needs to equip its military and is drastically limiting the revenue the Kremlin receives to fund its war machine,” said Secretary of the Treasury Janet Yellen detailing the U.S. portion of the new initiative. “Today’s actions will further tighten the vise on Putin’s ability to wage his barbaric invasion and will advance our global effortstocutoffRussianattemptstoevadesanctions.”

Drewry: World Container Index down 78% compared to last year

LONDON: Drewry’s composite World Container Index decreasedby1%to$1,719.95per40ftcontainerlastweek. Drewry’sdetailedassessmentforThursday,18May2023

• The composite index has decreased by 1% last week, and has dropped by 78% when compared with the same week lastyear.

• ThelatestDrewryWCIcompositeindexof$1,719per 40-footcontainerisnow83%belowthepeakof$10,377reached in September 2021. It is 36% lower than the 10-year average of $2,688,indicatingareturntomorenormalprices,butremains 21%higherthanaverage2019(pre-pandemic)ratesof$1,420.

• The average composite index for the year-to-date is $1,868 per 40ft container, which is $820 lower than the 10-year average($2,688mentionedabove).

• The composite index decreased by 1% to $1,719.95 per 40ft container, and is 78% lower than the same week in 2022. Freight rates on New York – Rotterdam fell 6% or $50 to $839 per feu. Rates on Shanghai – Rotterdam slid by 4% to settle at $1,542 per 40ft box. Similarly, rates on Rotterdam –New York contracted by 2% to $4,434 per 40ft container. However,ratesonLosAngeles–Shanghaigained1%to$1,029 per feu. Rates on Shanghai – Los Angeles, Rotterdam –Shanghai, Shanghai – Genoa and Shanghai – New York hovered around the previous week’s level. Drewry expects East-West spot rates on routes other than the transatlantic to bestableinthenextfewweeks.