The main focus is on:
Auction prices drop immediately
Tea prices fluctuate wildly
Transportation issues that cannot be ignored (European and American countries and Russia closed airspace to each other, and the world's major shipping companies, which accounted for 47% of the cargo traffic, suspended orders to and from Russia.)
Russian fertilizer exports soar
Global Commodities (Tea) Trading Co., Ltd. said that in the short term, the transportation of goods will be greatly hindered, but transportation is not the problem with the greatest impact, and other issues that pose risks to shippers cannot be estimated. More likely, the Sri Lankan and Kenyan tea auction markets will see a sharp drop in demand for the popular tea category in the coming weeks.
In order to curb Russia's further actions in the Ukraine crisis, the United States, the United Kingdom, the European Union, Japan, Singapore and other countries have imposed large-scale economic sanctions and export control measures against Russia, resulting in the Russian ruble suffering the worst depreciation in history.
Maersk and Mediterranean Shipping, the world's two largest container shipping groups, and their rival Hapag-Lloyd have suspended freight orders to and from Russia.
The sharp depreciation of the currency makes it more expensive for Russians to trade with all trading partners, so Russian consumption of black and whole tea leaves will be significantly lower.
