World’s largest shipping companies suspend bookings to and from Russia

Stacking containers on top of each other at the Commercial Port of Vladivostok, part of FESCO Group.

Three of the world's largest container shipping lines have stopped non-essential bookings to and from Russia, joining a growing list of companies that have stopped doing business with Moscow.

Shipping giants including Switzerland-based MSC,Denmark's Maersk and France's CMA CGM all announced on Tuesday that they would halt cargo bookings to and from Russia until further notice.

Humanitarian goods, food, medical equipment, and other essential supplies were not affected by the move.

Russia is intensifying its onslaught of key Ukrainian cities, with fighting raging in the north, east and south of the country. More than one million refugees from Ukraine have fled to other countries.

A mass corporate exodus from Moscow has been triggered by the confluence of Russia's invasion of Ukraine and the Western sanctions.

All cargo bookings to and from Russia have been stopped with immediate effect. The Baltics, Black Sea and Far East Russia are covered by the world's largest shipping container line.

The firm had said earlier in the week that it was considering suspending non-essential bookings to and from Russia.

The suspension of non-essential deliveries to and from Russia was prompted by the ever-evolving situation with governments posing new sanctions against Russia and the regular adjustments that are being made to the list of restrictions.

The exception of essential deliveries was to show that the shipping giant was focused on social responsibility.

As of Tuesday, all bookings to and from Russia have been suspended by the company until further notice.

The bulk of the world's manufactured goods are carried by container shipping companies. These steps taken by the world's largest container shipping lines effectively cut Russia off from a large chunk of the world's shipping capacity.

The shipping industry is expected to be impacted by the conflict and severity of the Russian sanctions.

Nick Austin, shipping partner at global law firm Reed Smith, said on Wednesday that the market is scrambling to get to grips with what the sanctions mean in practice.

The owners and charterers are looking closely at their fixtures to understand their legal rights.