b'38American Journal ofTransportation ajot.comRussianUkraine conflict impactsEVs and an emerging on the auto market supply chainBy George Lauriat, AJOT EVs are rolling off the lots but potential short-The Russian invasion of Ukraine triggeredonce destined for Russia will be backing upages could mar visions of a electric future. a variety of responses from supply chain pro- auto logistics in Europe. By George Lauriat, AJOTviders and automakers. On March 7th Wallenius Wilhelmsen, theA utomAkerse xitr ussiA Hidden amid the declin- ofVolkswagensnewID4 world largest RO/RO operator, announced it wasOf course, the problem is even bigger foring auto sales and productioncompact crossover. A number suspending operations in Russia and Belarus.automakers with production located in Russia.figuresisthesuddenascen- ofnewerentrantsalsocon-WalleniusWilhelmsenintheannouncementRussia, leading up to 2020, was a promisingdancy ofEVs (Electric Vehi- tributedasPolestar,with elaborating on the decision to cut services tomarket for foreign automakers. Russias home- cles).Accordingtofigures2,384; Rivian, with 701; and Russia wrote, Wallenius Wilhelmsen adheresgrownautoindustrylaggedbehindglobalreleased by the financial dataLucid, with 308. to international sanctions referring to the vari- automaking standards, and the demand insidefirm Experian, 158,689 newAccording to a recent McK-ous economic actions taken against Russia.Russiahas increased for foreign cars and hasEVswereregisteredintheinsey report the investment in In another announcement on April 22nd,boomed. But with the invasion of the Ukraine1stQuarterof2022,a60%EVs in well underway, Both the Norwegian carrier followed up and wroteand subsequent sanctions, foreign automakersincrease over the same periodtraditionalOEMsandnew that Wilhelmsen has no vessels going into thehave had to rapidly cut ties with Russia. lastyear.ThejumpinEVstart-upsarespendingmore area, but sanctions will cause disruption to ourThe biggest player in the Russian marketsales was made by a combina- to address these trends: since operations. We are preparing and consideringis Toyota. On March 4th Toyota halted pro- tion of traditional automakers2010, intrigued investors have actionssuchastheneedandavailabilityofduction at its St. Peterburg, Russia auto plant.and startups as investment infunneled$280billioninto terminal spaces at various ports in the EMEAAccording to a Reuters report, among the Japa- EVs is now beginning to hitinnovativeautomotivehard-[Europe/Middle East/Africa] region and sub- nese automakers, Toyota is Russias top brand,the streets. wareandsoftwaresolutions. sequentpotentialdisruptiontodeliveryofassemblingapproximately80,000vehiclesGiven chip shortages, sanc- Almosthalfofthisinvest-cargo already on the water. annuallyatitsplant,whichemploys2,000tions,lockdownsandsupplyment,about$115billionto The disruptions of auto carriers and otherstaff. According to the March 3rd announce- chain woes the performance of$120 billion, has gone to elec-freight being rerouted had impacts throughoutmentconcerningToyotasEuropeanopera- the EVs has been uplifting fortric vehicles (EVs).theEuropeanportrange.Forexample,thetions the company wrote: the auto industry and heads upTheinvestmentmakes Port of Zeebrugge, one of the largest RO/RO Toyota in Ukraine (sales and after sales opera- for changes ahead. senseastheglobaldriving ports in the world, is typically a staging porttions; 37 retail locations) has stopped all activitiesAccordingtoExperianpublicsenvironmentalcon-for EU auto shipments to Russia. Accordingas of 24 February.data, there were 113,882 newcernsandregulatoryregime to press reports with the EUs March 11th ban Toyota in Russia (sales and after sales operations;Teslasregistered,ajumpoftrends are rapidly opening up on luxury exports to Russia (which has subse- 168 retail locations; and one plant in St Peters- 59% compared with the firsttheroadforwidespreadEV quently been expanded), the Port of Zeebruggeburg manufacturing RAV4 and Camry modelsquarter of 2021. Kia was inadoption. Recently, the Cali-has received about 8,000 luxury cars for trans- for the Russian market mainly): Toyota Motorsecond place, with 8,450 reg- forniaAirResourcesBoard shipment to Russia, mainly from Asian autoRussia will stop production at its St-Petersburgistrations, followed by Ford,(CARB) released a proposal dealers. Exactly what will happen to the pileupplant from 4 March and has stopped importswith7,407,whileHyundaito support the states target to of luxury autos is still uncertain at the moment,of vehicles, until further notice, due to supplyaccounted for 6,964 registra- end sales of internal combus-but it is clear they wont be going to Russia.chain disruptions. tions, Nissan Leaf rose 23%tion engine vehicles by 2035. The likely solution is that theyll be sold offOthermanufacturingandsalesoperationsin the quarter, to 4,401, while(EMERGINGcontinued to other places but in the meantime, vehicles(IMPACTScontinued on page 39) there were 2,926 registrationson page 39)An ISO 9001 Certified Companywww.autoportinc.comPh: 302-658-5100Specializing in Vehicle Port Processing, Ro/Ro Terminal Operations, Mobility Decarbonization, and Vehicle Modifications & Conversions at:1'