Impact of Russo-Ukrainian War on Cold Chain Logistics

Background：

The Russo-Ukrainian conflict has had a series of effects on Ukrainian agricultural and livestock exports, especially frozen meat products. The war has resulted in blocked export routes in certain regions of Ukraine, leading to transportation difficulties and uncertainties. This has posed various challenges for the export of frozen meat products, including restricted transport routes, traffic disruptions, and increased complexity in cross-border procedures.

Timeline:

In October 2023, over 4000 tons of frozen beef purchased by the Wuhan-based client "WuNiu Group" were stuck in a Ukrainian factory's freezer due to the blockade of the Odessa port. This prevented timely shipment back to China, causing significant financial strain on the group. Additionally, due to a long-term contract spanning three years, although the factory reduced production, it had not ceased operations, leading to mounting inventory and financial pressures.

Project Implementation:

a. Upon receiving the client's commission, the Cold Chain Committee of NCL Logistics actively formulated a plan. They communicated with major shipping companies with whom they had long-term partnerships to determine the available number of refrigerated containers and the international ports closest to the client's factory.

b. As the client's factory is located in the Ternopil Region, western Ukraine, approximately 450 kilometers from the Constanța port in Romania, it was decided to use Constanța as the originating port for the logistics plan.

c. Eventually, NCL coordinated with Ukrainian and Romanian agents as well as three shipping companies to establish the following transportation method:

> Container pickup at Constanța, loading at the Ternopil factory, and land transportation back to the Constanța port for shipping.

> Sea freight from Romania to major Chinese ports such as Shanghai, Tianjin, and Shenzhen, with the entire journey taking approximately 35-45 days.

Outcome:

In early January 2024, all inventory of frozen beef belonging to "WuNiu Group" in Ukraine was successfully transported to major Chinese ports. Due to NCL's comprehensive logistics solution, the client signed a two-year contract with NCL Logistics for fulfillment services.

NCL Logistics' team, with over 20 years of practical experience in international logistics, assists Chinese enterprises in expanding internationally. They are capable of quickly responding and providing reasonable planning services when handling unforeseen events caused by international disputes.