IMPACT OF ANTI-RUSSIAN SANCTIONS ON THE MARITIME BUSINESS AND TRAINING OF MARINE SPECIALISTS

Sergei V. Pesterev Admiral Nevelskoy Maritime State University, Vladivostok Nikolai I. Pereslavtsev Admiral Nevelskoy Maritime State University, Vladivostok Natalia V. Shishkareva Admiral Nevelskoy Maritime State University, Vladivostok         

Abstract:The article examined the organization of the practice of students of Admiral Nevelskoy Maritime State University as one of the main problems of the educational process and proposed ways to solve it. The expediency of creating a commercial enterprise on the basis of partnership with maritime shipping companies and universities of the Russian Federation for joint training and production practices of students is justified.

Keywords: anti-Russian sanctions, educational process, student production practice, mutually beneficial cooperation, training and production vessel, port, inter-modal transportation, cooperation of universities, rating of graduate diplomas in employment

Due to the complicated political situation and the tightening of Western anti-Russian economic sanctions, Russia’s foreign trade and transport logistics for a long time experience increasing difficulties.In particular, the deterioration affected the sphere of foreign trade shipping and training of marine specialists. This article discusses the issue how to overcome the negative impact of anti-Russian sanctions on the maritime business and training of marine specialists in compliance with the instructions of President and Prime-Minister of Russia about “Pivot to the East”. A proposal is put forward about the need to develop an “Import substitution program in maritime transportation in the Far East”.

2022 marked the beginning of significant changes in the logistics sector of Russia. Western economic sanctions imposed on Russia (in total more than 10000 restrictions) [1] could not save to touch the sphere of maritime transportation. Maritime business is an important component of the Russian economy, as most of the goods are delivered through seaports. However, the sanctions make the negative impact on marine industry. As a result, many foreign companies  had to stop their activities with Russian partners. It was, in fact, the most sensitive blow, because more than 90% of the the Russian foreign trade depended on foreign vessels (in container transportation – nearly 100%).  This leads to a break in existing supply chains, a reduction in export and import volumes of goods through the seaports[2].

The world’s largest logistical corporations suddenly stopped working with Russian cargo.  First of all, it affected transport companies associated with sea container transportation, so this area suffers the greatest losses and difficulties.Among the logistics companies refused to work with Russia are the next ones:    

– A.P. Moller-Maersk (Denmark) – the largest operator of sea cargo transportation;  

– Mediterranean Shipping Company (MSC) (Switzerland-Italy);  

– CMA CGM Group  (France);  

– Hapag-Lloyd (Germany);  – Ocean Network Express (ONE) (Japan);  

– Yang Ming (Taiwan)

Above mentioned six companies occupy 80% of sea transportation market [2]. As a result, for 10 months of 2022 the volume of Russian container market decreased 15,8% comparing with the same period of 2021 [1].

Market sources say that ‘container boycott” has blocked up to 50% of goods imported to Russia and up to 60% of Russian export.  The booking system stopped working, and Russian companies had to pay for storage in ports. According to different estimates, the number of containers blocked on the way to Russia in the spring of 2022 is more than 300 000 TEU [3].

It is necessary to note that the volume of container transportation is reducing all over the world. This trend is affected by high inflation, decrease of population’s purchasing power as well as the slowdown of China economy’s growth.  Economic forecasts for 2023 are also not the most optimistic. Today we can see on the world market the over surplus of container equipment’s volume and number of container vessels.  In the first half of 2023 the new constructed ships , ordered earlier, will be launched. Therefore, global shipping companies have to plan a work on the reduction of volume and to prevent a fall of profitability [1].

Western sanctions also affected domestic marine  carriers. Russian vessels are banned to enter European ports. Russian transport infrastructure also got under sanctions (for example, Novorossiysk seaport) and Western companies can not work with Russian legal entities directly or indirectly.  Scandinavian direction suffered the heaviest losses. Volumes of cargo transportation through the Russian northwest ports (including Saint-Petersburg) decreased by 41%. Container shipping from Western Europe and Atlantic countries to Saint-Petersburg reduced by 70% [4].

Turkiye stopped the transit transportation of sanction cargoes through its territory to Russia. Turkiye customs officers block the goods for Russia in special warehouses if they were imported from the country, which has declared anti-Russian sanctions [4].

The declaration of anti-Russian sanctions reduced the competition for trade routes to and from Russia. As a result, the main suppliers now (in 2023) are Turkiye and China and due to this it becomes possible to raise the prices for transportation. By 2020 the cost of marine container transportation from China to Russia was 3000-4000 dollars for one container but since July 2022 the tariff has been increased op to 11500 for one container. Experts explain that actual carriers – air companies, shipping companies, railway companies – increased their tariffs, and because of this the prices both for foreign and Russian logistics providers were also raised. The supplies to Russian Baltic ports decreased almost by 90% [5].

The main consequence of Western companies’ departure from Russia was the reorientation cargo flows, which traditionally passes through Saint-Petersburg, to the Far East. The situation in this region mainly remains the same. The market of container transportation is divided between FESCO and SINOCOR, both companies work here for a long time.  As well, there exist logistics companies (in China), which specialize in transportation of humanitarian cargoes. According to experts opinion, notwithstanding the total number of vessels decreased the ports, in principle, operate normally [6]. In 2021 the number of sea lines in the Far East was 15, and in September of 2022 reached 27. The export through Far Eastern ports after 10 months of 2022 raised by 36%, import – by 10% [1].    

(End of introductory fragment)