News

Customer Advisory - Russia/Ukraine Update

UPDATE

(Florham Park, NJ)… As the crisis in Ukraine continues and governments impose new sanctions on Russia and its allies, Hamburg Süd is keeping a close eye on developments and making necessary adjustments in line with the latest restrictions.

After careful consideration, we now see the clear need to establish new and revise existing processes of accepting and handling bookings for Belarus. We already have strict controls in and out of Belarus in connection with existing sanctions, but we must now ensure our processes comply with the latest sanctions and import controls with regard to the crisis in Ukraine.

For Belarus, going forward, only bookings for foodstuff, medicines and humanitarian supplies except dual use) will be accepted after extensive screening. This exemption is to underline that Hamburg Süd is focusing on social responsibility and making the efforts to support society despite the complications and uncertainties within the current supply chain.

In addition, as Hamburg Süd acts in full compliance with legal regulations and its policies, we cannot engage with, receive from or make payments to any sanctioned banks, or any other sanctioned party – including Belarusian and Russian parties.

Intercontinental Rail (ICR)

Off the back of newly imposed sanctions, Hamburg Süd has now temporarily suspended new intercontinental rail bookings without exception both east and westbound between Asia and Europe until further notice.

If you have cargo currently in transit or have completed a booking before this suspension was announced, we will do our utmost to get it delivered to its intended destination across the normal routes.

To give you as much visibility on the situation, please see the following FAQ that summarizes what we havecommunicated so far and includes the most frequent questions our customers are asking us.

We will keep monitoring the situation and reviewing impacts from sanctions, with an ambition to stabilize operations as quickly as we can. Please do not hesitate to contact our Hamburg Süd Customer Experience teams to discuss options and solutions for your cargo.

Please contact your Hamburg Süd representative with any questions that you may have.

FAQ in connection with the ongoing crisis between Russia and Ukraine

Q: Can I ship cargo to/from Ukraine at the moment?

A: No. The current crisis taking place in Ukraine means that Hamburg Süd has decided not to call any ports in Ukraine until further notice and stop the acceptance of all new orders to and from Ukraine until further notice. Every decision we have made during this crisis has been with Hamburg Süd employee safety and customer supply chains in mind, and these will continue to be our top priorities in light of all future developments.

Q: Can I ship cargo to/from Russia at the moment?

A: Earlier this week we communicated that until further notice, all new Hamburg Süd bookings within ocean and intercontinental rail to/from Russia would be suspended due to direct and indirect sanctions and that exempted from this booking suspension was foodstuffs, medical and humanitarian supplies. We have also warned about the stability of our operations due to the uncertainties with applications of sanctions.

An increasing number of our terminal service providers in Europe are advising us that they will no longer be able to handle any additional cargo originating or destined for Russia, including transshipments. As the stability of our operations and our customers’ cargo is critical, we are now also temporarily stopping acceptance of all new Hamburg Süd bookingsto/from St. Petersburg, Kaliningrad and Novorossiysk, regardless if the cargo is food, medical or humanitarian.

Far East Russia is currently not impacted, but only allows for foodstuff, medicine and humanitarian supplies.

Q: Are there any exceptions when it comes to shipping cargo to/from Russia?

A: Initially, due to direct and indirect sanctions against Russia, Hamburg Süd temporarily suspended bookings to/from both Russia and Ukraine with the exception of foodstuffs, medical and humanitarian supplies in order to support society in the current circumstances.

However, due to current operational constraints, we cannot accept any new Hamburg Süd bookings to/from St. Petersburg, Kaliningrad and Novorossiysk, regardless if the cargo is food, medical or humanitarian.

Far East Russia is currently not impacted, but only allows for foodstuff, medicine and humanitarian supplies.

Q: Can I still ship reefer cargo to Russia?

A: An increasing number of our terminal service providers in Europe are advising us that they will no longer be able to handle any additional cargo originating or destined for Russia, including transhipments. As the stability of our operations and our customers’ cargo is critical, we are now also temporarily stopping acceptance of all new Hamburg Süd bookings to/from St. Petersburg, Kaliningrad and Novorossiysk, regardless if the cargo is food, medical or humanitarian.

Far East Russia is currently not impacted, but only allows for foodstuff, medicine and humanitarian supplies.

Q: How will the new sanctions and export controls that are being applied to Russia affect my cargo?

A: We are keeping a very close eye on developments with regards to sanctions and making the necessary adjustments to our services in line with the restrictions. Customs authorities in the EU and UK are inspecting all units to/from Russia transiting their terminals/ports to identify sanctioned and restricted shipments (mainly focused on sanctioned parties and goods). This is a direct consequence of the sanctions, but there are also indirect impacts as all cargo is getting delayedand our transhipment hubs are getting congested impacting our customers’ supply chains. This is a global impact, not limited to trade with Russia.

Also, as Hamburg Süd acts in full compliance with legal regulations and its policies, we cannot engage with, receive or make payments involving any sanctioned Russian banks, or any other sanctioned party.

Q: Can I ship cargo to/from Belarus at the moment?

A: All new Hamburg Süd bookings within ocean and intercontinental rail to/from Belarus would be suspended due to direct and indirect sanctions and that exempted from this booking suspension was foodstuffs, medical and humanitarian supplies. We have also warned about the stability of our operations due to the uncertainties with applications of sanctions.

Q: What is dual-use cargo?

A: Dual use items are items that are mainly used for commercial/civilian purposes but can be used also for military or enforcement purposes. Dual use restrictions applicable to Russia cover the following categories: Electronics, Computers, Telecommunications and Information Security, Sensors and Lasers, Navigation and Avionics, Marine and Aerospace and Propulsion, Chemicals.

Q: What is Foodstuff, Medical or Humanitarian goods?

A: Foodstuffs and medicines are for human and animal consumption and essential for survival. Humanitarian goods includes hygiene and personal care items. We wish to accept foodstuff, medical and humanitarian aid because generally broad authorizations and exceptions will allow for such shipments recognizing the essential needs of countries’ citizens.

It should be noted that such shipments/transactions cannot involve any sanctioned party, commodity or bank.

Q: What will happen to my cargo if it is already loaded on vessels or discharged at a port in Ukraine or Russia?

A: It is key for Hamburg Süd that we minimize supply chain disruptions and do not add to the global congestion in ports and depots. For cargo already underway and bookings placed before these suspensions were announced, we will do our utmost to deliver it to its intended destination. However, the inspections of export and transhipment cargo bound for Russia to comply with the recently imposed sanctions and export controls is causing significant delay and disruption across the entire supply chain.

We are working with ports in Europe to clear backlogs and exploring options in other ports outside of Europe so that we can keep our customer promise of delivering our customers’ cargo to its intended destination.

To further cope with the congested network in European ports, we are temporarily holding the release of equipment for confirmed booking as well as stopping all stuffed containers destined to Russia at first load port or transhipment port.

Q: Where can I get help if my cargo is being affected?

A: If your cargo is affected, one of our Customer Experience agents will reach out to you. If you have further questions, please get in touch with your Customer Experience representative.

Q: Is the current shipping situation affecting other ports?

A: We are starting to see the effect on global supply chain flows resulting in unpredictable operational impacts. Customs authorities in the EU are now inspecting all units to/from Russia transiting their terminals/ports to identify sanctioned andrestricted shipments (main focus is sanctioned parties and goods). This is a direct consequence of the sanctions, but there are also indirect impacts as all cargo is getting delayed and our transhipment hubs are getting congested impacting our customers supply chains. This is a global impact, not limited to trade with Russia.

Q: What are my options if I want to divert my cargo?

A: For cargo already on its way to Russia and Ukraine, that we are currently unable to deliver due to the various restrictions, we will not charge hub storage fees. For customers impacted by the temporary booking suspension to/from Ukraine and Russia, we would like to offer:

• Free Change of Destination services, subject to re-stowage and shifting costs*.

• No cancellation fee on active bookings to and from Ukraine and Russia*.

• Interim stop of the Detention and Demurrage clock for Ukraine imports and exports and Russia exports until March

11th, 2022, where the D&D responsibility lies with Hamburg Süd**.

• Flex Hub Lite – access to up to 28 days free time in selected hub ports. This is a chargeable service that comes at a price of US $800*. This is an option for customers to buy more time in the middle of the cargo journey to assess the most optimal final destination. Please note that this is by customer choice and only if the customer wants the cargo stored in a different port than the one decided by Hamburg Süd. With the evolving situation with ports in Europe, the Flex Hub Lite products is temporarily suspended for new requests for European hubs.

*subject to operational feasibility

Q: Is Flex Hub Lite compulsory for existing bookings currently in first load port or discharged in a transshipment hub?

A: No. For cargo that is on its way to Russia or Ukraine that we are currently unable to deliver due to the various restrictions, we will not charge hub storage fees. We cannot guaranty that the container will be stored in the port first discharged at, as due to current port constraints, we might need to move the container to nearby ports to ease yard density.

Q: How long will these processes be in place?

A: Giving customers the best ability to manage their supply chain is of the utmost importance to us and we are working to give you everything you need to run your global logistics in these circumstances. We will keep monitoring the situation and reviewing impacts from sanctions, with an ambition to stabilize operations as quickly as we possibly and legally can.

Q: How are intercontinental rail services affected?

A: Effective 03/03/22, off the back of newly imposed sanctions, Hamburg Süd will temporarily suspend new intercontinental rail bookings without exception both east and westbound between Asia and Europe until further notice. If you have cargo currently in transit or have completed a booking before this suspension was announced, we will do our utmost to get it delivered to its intended destination across the normal routes.