Ukraine war: Trade flows between Shenzhen and Russia thin by nearly a third as freight forwarders bemoan Ukraine uncertainties
- Cargo flow volume between Shenzhen and Russia is an important sign of the overall health of trade between China and its northern neighbour
- As China’s Silicon Valley, Shenzhen’s exports to Russia are heavily focused on technology
Freight shipments from Shenzhen to Russia have shrunk by nearly a third since Moscow began its invasion of Ukraine, according to freight forwarders in the southern tech hub who provide logistics services to the region’s exporters.
Jason Wu, general manager of Shenzhen Xinsheng Freight Forwarding Co, one of the many agencies in the city helping exporters to find planes, railway containers and road trucks to transport goods, said the impact was almost immediate as many Russian clients cancelled or postponed their orders from Shenzhen suppliers.
Wu, who has been in the Russia-bound transport business for 15 years, said that his company’s order volume had dropped 30 per cent since the start of the war in late February.
Another freight forwarder at a Shenzhen-based logistics company, who would only provide his surname, Chen, said that his business had dropped by 20 to 30 per cent for Russia-bound shipments. “There was an obvious drop in interest to buy from China after the war,” he said.
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Hospital train ferries the wounded away from advancing Russian forces in eastern Ukraine
Chen’s company mainly helps cross-border merchants in Shenzhen that sell on e-commerce platforms, including Ozon and AliExpress, to move products to Russia, ranging from daily consumer goods to personal gadgets, via air cargo. AliExpress is affiliated with Alibaba Group Holding, which owns the South China Morning Post.