What's going on with supply chains right now?

More and more foreign companies are announcing their withdrawal from the Russian market or suspension of operations in Russia. Yes, this changes well-established supply chains and logistical links. But “no place is empty”, especially when it comes to vacated market niches.

Chinese, Turkish and other foreign suppliers will come, logistics routes will change, and consumer habits will change. We will see new logos, but the goods themselves will not go anywhere. In the conditions of competition, quality, service and assortment will increase. It is only a matter of time. As a result of the sanctions, the supply chain has lengthened and transportation has become more expensive. This is due to the fact that the link, which used to be filled with goods from Europe and America, falls out of the chain, and transportation at this stage goes empty. More thorough customs checks for the presence of sanctioned goods also adversely affect both the terms and the cost of transportation. In addition to the above, we are expecting a surge in unfulfilled contracts due to legal intricacies (our colleagues have already started to deal with this). For some people, the current conditions are force majeure and the reason for non-fulfillment of obligations, although officially, legally, the situation is not force majeure. Otherwise, work continues, cargoes are going: in full - to China, less - transit. I think that in a couple of months there will be a market slump, but then logistics will readjust, adapt to the new conditions, and by the end of the year the situation in transportation will gradually stabilize.