Ahlers Forges a Path for Logistics in War-Torn Ukraine
Source: Project Cargo Journal
The war in Ukraine has rewritten the rules of project cargo logistics, demanding a level of adaptability and on-the-ground expertise rarely seen. From navigating damaged infrastructure and securing dual-use certifications to circumventing insurance black holes and collaborating with military personnel, Ahlers Logistics is pushing the boundaries of what is possible.
Speaking to Project Cargo Journal, Marko Buneta, Key Account and Project Logistics Manager; Wim Copmans, Key Account Manager – Industry and Energy; and Julia Melnikova, Project Coordinator based in Ukraine, reveal the intricate strategies and on-the-ground realities of maintaining vital supply chains in a conflict zone.
On-the-ground realities: A constantly shifting landscape
“The situation here is constantly changing, sometimes even from hour to hour,” Melnikova explains from her base in Izmail, a crucial port city on the Danube. The relentless attacks on Ukrainian infrastructure, exemplified by the recent damage to Port Reni and the attack on an MSC container vessel in Odesa, necessitate constant vigilance and adaptability.
“Logistics in Ukraine have been completely transformed since 2022. We’ve had to find new ways to operate, and the entire logistics landscape of the country has shifted,” she emphasizes.
This constant flux demands a meticulous approach to every shipment. “The first step when handling a request now is to research the delivery location, as this significantly impacts the process,” Julia details. “We check the route and available options, as the railway connection to a location, especially those near the front lines, may no longer be operational. This also applies to road deliveries; proximity to the front line or conflict zones increases risk.”
Adapting to unprecedented challenges
Ahlers has pivoted to using neighbouring European ports like Constanta in Romania, Gdansk in Poland, and ports along the Danube as primary transhipment hubs. “These traditional gateways are now seeing a peak in importance,” Buneta notes. “For project cargo, we see the Danube and its ports being more developed now.”
However, this adaptation comes with its own set of challenges. “Long convoys of trucks are currently prohibited, as they are potential targets,” Julia explains. “Deliveries have to be smaller now. The same applies to rail transport. We don’t have many rail cars available at the moment, and the state company, Ukraliznytsia, can only provide a limited number.”
Additionally, the shortage of skilled labour, particularly welders, necessitates cargo to be shipped in a more assembled state. “For oversized cargo or machinery, providing other restrictions allow it, we recommend keeping the cargo as assembled as possible to maintain its dimensions,” Buneta explains. “This is crucial because Ukraine currently faces a significant shortage of welders.”
Navigating risk and securing vital deliveries
Insurance remains a significant hurdle. “We don’t have war risk insurance,” Melnikova states, highlighting the unique challenges of operating in a conflict zone. “Insurance companies still classify the war as a force majeure event in their policies.”
Despite this, Ahlers is committed to providing the highest possible level of insurance coverage while navigating the complexities of delivering to high-risk areas. “In some regions, insurance companies don’t provide any coverage at all,” Melnikova explains, emphasizing the need for clients to understand the risks involved.
Dual-use certificates and government collaboration
The stringent regulations surrounding dual-use goods add another layer of complexity. “Dual-use certificates have become a standard requirement,” Buneta highlights. “With our in-house experts in Ukraine, we can assist customers in obtaining these certificates and advise on documentation requirements.”
Melnikova elaborates on the importance of this: “Potential clients need to provide us with scanned copies of their documentation before shipping. This helps us determine whether the cargo is dual-use and will need special authorization.”
Collaboration with the Ukrainian military and local authorities is vital. “You have to cooperate with the military because they have essential information,” she notes. “The same applies to the road between Ismail and Odessa, which we call ‘the road of life’ as from the beginning of the invasion it was the only road for the people to escape and for the cargo to be delivered. There are several military checkpoints along this road, and you must show documentation when passing through.”
Looking ahead: rebuilding and resilience
Despite the challenges, Ahlers remains optimistic about Ukraine’s future. “With recent developments, there’s increased optimism in the market that the situation could resolve sooner than expected,” Buneta observes. “Consequently, there’s a lot of discussion about rebuilding Ukraine. As I mentioned, our customers are showing more interest than they did even a few months ago.”
Copmans emphasizes the importance of a ceasefire for large-scale investment. “Regarding investment and the reconstruction of Ukraine, significant investment and rapid progress necessitate a ceasefire or a similar enforcement,” he says. “Subsequently, sectors such as construction, construction equipment, and energy, particularly the rebuilding of Ukraine’s energy facilities, will be critical.”
Ahlers’ commitment to Ukraine is unwavering. “We want to emphasize our continued presence; we’ve been operating in Ukraine consistently for 25 years and currently have over 150 people there,” Buneta concludes. Their expertise, adaptability, and resilience are crucial in ensuring the continued flow of essential goods and materials into a nation facing unprecedented challenges.
