About 15% of the world's seafarers come from the two countries, so the shipping industry could face an even worse labor crunch.
According to Tradewinds, if shipping companies have problems moving crew in and out of Ukraine, it could result in a manpower shortage, while Western sanctions could make it difficult to pay seafarers from both countries.
According to the International Chamber of Shipping, supply chains could be disrupted due to the fact that 90% of global trade is transported on ships.
Seafarers must be able to join and disembark ships across the world in order to maintain unfettered trade. Russian and Ukrainian seafarers make up 4% and 10.5% of the world's 1.89 million seafarers, respectively, according to the chamber.
There are issues with vaccine recognition, border controls, and movement restrictions that are causing a labor crunch in the shipping industry. One ship manager told Tradewinds that operational challenges could intensify with the Russia-Ukrainian conflict.
The ship manager told the outlet that they don't know what to do if they have Russian and Ukrainian crew on the same ship. The whole thing is going to be a nightmare.
Many Ukrainian seafarers are expected to be drafted into the military by ship managers, who supply crew to major shipping companies.
CNN reported that the State Border Guard Service said that all male citizens from the ages of 18 to 60 have been banned from leaving the country. Ukrainian President Volodymyr Zelensky ordered a general military mobilize across the country.
As container freight rates remain high, there are concerns about a worsening labor crunch in shipping.
The spot rate for a 40-foot container from Shanghai to Los Angeles rose 3% from a week ago.
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