Jason Wu, General Manager of Shenzhen Xinsheng Freight Forwarding, said the impact of the Ukraine war was practically immediate. As a result, many Russian clients canceled or postponed their orders from Shenzhen suppliers.

Since the war started in late February, his company’s order volume had decreased by 30%.

Chen, a freight forwarder at another Shenzhen-based logistics company, said that his firm had seen shipments to Russia fall 20% to 30%.

China’s official figure also reflects the lower freight volume.

Reuters cited a Chinese custom reporting that China’s overall trade with Russia rose 12.76 % in March to $11.67 billion. It’s slower than the 25.7% growth in February.

According to South China Morning Post (SCMP), Shenzhen is home to Huawei and drone maker DJI and a gateway for small businesses along the Delta region. Therefore, the volume of cargo flow between Shenzhen and Russia is a key indicator of the trade between China and its northern neighbor.

Due to the war, some European competitors’ have suspended their operations in the Russian market. But, on the other hand, it might be the silver lining for China’s freight forward service providers.

As the Air Cargo News reported, four of the world’s leading airfreight forwarders, DVS, DB, DHL, Kuehne+Nagel, announced their suspension of services in Russia.

DHL discontinued its inbound services to Russia and Belarus. The company said it will not accept packages to those countries until further notice.

In addition, Maersk, the Danish shipping behemoth, has also exited the Russian market.

Jason Wu from Xinsheng said he expected a rapid increase in order volumes because many European forwarders suspended business with Russia.

He hoped that their clients might turn to Chinese agents for substitution.

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