Kingston Wharves Limited (KWL) has warned of some delays in the movement of cargos at ports as barely recovering supply chain disruptions have been further compounded by the Russia-Ukraine conflict.

Commercial and logistics manager at KWL Alfred McDonald said that while the most immediate impacts were being experienced in air cargo shipments between Asia and Europe, the closure of some ports in and around the Black Sea have led to changes in cargo delivery and increased shipping cost.

“While there has been no immediate visible impact on the operations of local ports, it is expected that there will be delays in the delivery of cargo from the affected region and the cost of sea freight will increase. This will result in higher prices to manufacturers and distributors of commodities, which would be eventually passed on to consumers,” he said in response to queries from the Jamaica Observer this week.

McDonald said that with major shipping companies such as Maersk, Ocean Network Express, Hoegh Autoliners, Hapag-Lloyd, and MSC having suspended operations in the warring areas, delays along with increases in the cost of shipment were imminent.

“The longer it takes for the conflict to be settled, the greater will be the impact on global and local port operations,” he told the Business Observer.

Having already incurred significant expenses from shipping costs ballooning to over US$20,000, the plight of local manufacturers is sure to be exacerbated as the conflict continues.

With Russia and the Ukraine accounting for a third of global wheat exports, McDonald said the commodity and others including fertilisers are also likely to be in short supply during the short to medium term.

“In addition, the automobile industry may experience supply shortages as Ukraine and Russia are substantial sources for palladium and platinum, used in catalytic converters, aluminium, steel and chrome. Shortages in palladium and xenon, which are used in semiconductor and auto production, could add to the already challenging situation in the new car industry brought about by the COVID-19 pandemic,” he said in further outlining other commodities faced with the threat of having short supplies.

“With international sanctions and embargoes being placed on Russia, the largest exporter of natural gas and second largest exporter of crude oil, the availability and cost of oil are matters of significant concern,” he added.

McDonald, in noting KWL’s response to the crisis, said that the local port has been maintaining constant dialogue with its stakeholders, including global shipping lines that call at its port, as it seeks to gauge suspension services along with the likely impacts the challenges could pose for local operations.

“We will continue to monitor the situation closely, including the impact of the rising cost of doing business, and determine an appropriate response as the need arises,” he further stated.

Offering an outlook for global supply chain operations over the long term and if the geopolitical tensions persist, the manager expressed optimism for systems to inherently resolve some issues.

“The global supply chain has proven to be resilient through history and will find a path to a ‘new normal’ if the challenges persists in the long term,” he stated.