Ukraine conflict is changing the face of commodities flows
The shipping routes of the Black Sea are likely to be redrawn with energy and agricultural buyers considering alternatives in South America or India.
THE Russian invasion of Ukraine has turned the world of commodities on its head. The conflict comes not just at a time of a shortage across a wide swathe of commodities but also at a point when the world's supply chains have never been more interconnected, where supply disruptions on one raw material can have wide reaching consequences across several products at the other end of the globe.
The disruption is not just confined to the physical areas of production or the financial systems of banking but also highlights the importance of the Black Sea in the conveyance of commodities from one region to another. Faced with severe disruptions, energy and agricultural buyers alike are now thinking of how and where alternative capacity can be sourced, reinforcing the recent pandemic lessons of diversification of supply chains and once again changing the flows of international trade.
How does the conflict affect commodities?
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