Transformed by challenges

Singapore freight forwarders – Star Concord
01-Sep-2024

The logistics landscape in Ukraine has been radically transformed due to the ongoing conflict. The operational environment is marked by unpredictability and frequent disruptions.

Starting from 24th February 2022, many logistics companies had to adapt their methods and routes for delivering goods to Ukraine by leveraging the infrastructure of neighbouring countries such as Poland, Romania, Moldova, and Hungary.

“We encountered numerous challenges, including obtaining transit permits for transporting goods from European Union airports and seaports to the Ukrainian border, managing payment processes for handling at these hubs, and dealing with strikes by Polish farmers and truck drivers at the Poland-Ukraine border,” Yevhen Marinov, General Manager of Air Cargo Lines LLC, said.

“The airspace over Ukraine remains closed, preventing any civil aircraft from entering the country. This situation negatively impacts Ukraine’s economy and presents significant challenges when airfreight delivery is required.

“Consequently, we are left with only one viable solution—multimodal transportation.

“However, when considering the overall impact, I believe that these challenges have made Ukrainian freight forwarders more flexible, resilient, innovative, and resourceful.”

Safety comes first

When the conflict escalated, Air Cargo Lines LLC’s immediate priority was to safeguard its employees while maintaining operational capacity. The freight forwarder urgently needed to replace its primary transportation hub, Boryspil International Airport and the Port of Odesa, with alternative options, such as Warsaw Chopin Airport, Krakow John Paul II International Airport, Budapest International Airport, and the ports of Gdansk and Gdynia. This required an overhaul of operational methods and routes, necessitating a proactive approach.

“Due to our strong relationships with partners in Poland and Hungary, identifying transit solutions from EU airports and seaports to Ukraine was relatively straightforward,” Marinov stated.

“Simultaneously, we recognised the need to expand our partner network to enhance flexibility and ensure a reliable contingency plan was always in place.

“Admittedly, at the outset, it took us twice as much time to meticulously plan our actions to ensure timely deliveries and meet our clients’ needs.”

Resilience amid disruption

Maintaining a strong presence in the aviation industry amid global challenges requires agility, innovation, and strategic partnerships. Air Cargo Lines LLC has diversified its operations to include a mix of air, land, and sea logistics, which allows it to remain resilient in the face of industry-specific disruptions.

The freight forwarder’s strong relationships with EU partners enable it to navigate regulatory changes and airspace restrictions more effectively. By staying ahead of industry trends and maintaining a customer-centric approach, they hope to continue to deliver reliable aviation logistics solutions.

“Our focus moving forward is on embracing digital transformation and sustainability. We are investing in advanced technologies such as AI and machine learning to enhance predictive analytics, which will allow us to optimise routes, reduce costs, and improve delivery times,” Marinov outlined.

“Additionally, we are expanding our global network to increase our reach and provide more comprehensive services to our customers. By staying at the forefront of innovation and sustainability, we aim to continue offering unmatched logistics solutions that meet the evolving needs of our clients.”

Changing operations

Once the war started the main types of cargo were, naturally, humanitarian aid, fuel, food and cars for the army. Currently, companies, like Air Cargo Lines LLC, transport different types of cargo such as: electronics, raw materials, textiles, used cars, spare parts, industrial equipment, supplements, toys etc.

  Labour is a challenge, as the mobilisation law in Ukraine has become stricter, resulting in many men being conscripted into the army, while some attempt to evade service. There are numerous job vacancies that remain unfilled due to a shortage of qualified men.

Additionally, a significant number of men have emigrated to the EU, USA, and Canada through various means, both legal and illegal. This is also a big challenge for Ukraine as far as some positions can’t be filled by women.

“To ensure resilience during prolonged conflict, we are focusing on three main areas: diversification, innovation, and collaboration,” Marinov highlighted.

“Diversification of our supply chains and transportation routes allows us to minimise risk and maintain continuity even when certain paths are compromised. Innovation in technology helps us to adapt quickly to changing conditions and optimise our operations.

“Lastly, collaboration with international organisations and partners strengthens our ability to respond effectively to new challenges. By building a robust, flexible logistics framework, we are prepared to sustain our operations and support our customers through any prolonged conflict.”

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Author: Edward Hardy