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The Markets
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The Markets
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Transport

Russian invasion to force European bottlenecks – broker

Impact on logistics to transpire through supply chain shortages and higher inflationary pressures, weighing on GDP

The ongoing Russian invasion of Ukraine and ensuing economic fallout will increase the likelihood of growth dampening supply bottlenecks in Europe, according to UBS.

The broker said that while European logistics and shipping companies had limited revenue exposure to Russia and Ukraine, increase supply chain shortages and higher inflationary pressures would weigh on its economy.

UBS economists estimate that each 10% increase in fuel, gas and energy prices negatively affects GDP by around 0.2%.

It said companies like Maersk were already reporting pressure on transhipment hubs, while it said DSV could outperform.

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