Page 39 - Журнал Sozvezdye Review - «СОЗВЕЗДИЕ» #39
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Company were the only ones in Russia that owned
                                                       container ships. It happened so that those contain-
                                                       er ships – after the merchant fleet had been divid-
                                                       ed among the sixteen Soviet shipping companies
                                                       under the USSR Ministry of Marine Fleet – became
                                                       the property of the former Soviet republics, the lat-
                                                       ter having become independent countries overnight.
                                                       The Baltic Shipping Company soon went bankrupt,
                                                       and the Far Eastern Shipping Company first lost its
                                                       liner traffic and then a significant portion of its fleet.
                                                          Discouraging as it was, the situation had its pre-
                                                       cursors arising back in the ’80s. At that time, the
                                                       USSR faced challenges with its maritime logistics:
                                                       The lacking port capacity was causing congestion,
                                                       with many foreign vessels queueing to unload or load.
                                                          It was at that time that the port capacity started to
                                                       receive expansion and the merchant shipping was left
                                                       at the mercy of other states. The thinking was that in
                                                       pursuit of the financial gain, foreign countries would
                                                       continue to carry Russian shipments anyway. Who
                                                       would have guessed that thirty years later, they, in
                                                       fear of sanctions, would choose to forgo the economic
                                                       gain and virtually impose on Russia a logistics block-
                                                       ade? But they did, and they did it with great passion.
                                                       With little done to ensure maxi-
                                                       mum transport security, the Rus-
                                                       sian history illustrates one univer-  Сегодня крупнейшим в России
                                                       sal truth: There can be no security   контейнерным перевозчиком
                                                       without the marine fleet.
                                                          Despite the fact that there are a   является компания FESCO
                                                       few hundred shipyards and repair fa-  (Дальневосточное морское
                                                       cilities of different caliber in Russia,   пароходство). Она обладает
                                                       none of them is currently building
                                                       container ships. As to the container   флотом из 13 контейнеровозов
                                                       ships that fly the Russian flag, these   Russia’s largest container
                                                       were built by foreign shipyards. This   shipping company is FESCO (Far
                                                       means that the domestic container-
                                                       ship construction competence has   Eastern Shipping Company).
                                                       been and still is outstanding.   With 13 container ships
                                                          More or less modern container
                                                       ships in FESCO’s ownership were
                                                       built in 2005-2009 in China, Ger-
             As we hear from the market actors, the global   many and Poland. FESCO Ascold, with a capacity of
          boycott halts as much as 50% of Russia-bound im-  1,080 TEU, was built by China’s Jiling Shipyard; three
          ports and approximately 60% of the Russian exports.  FESCO Vitim container ships (1,730 TEU) and FES-
             That said, there is very little hope that the situa-  CO Diomid (3,100 TEU) in Poland; and three FESCO
          tion may improve and that the Russian shippers and   Baykal container ships by Germany’s Aker Ostsee.
          consignees will find alternatives to the container lines   A Morskie Vesti Rossii correspondent filed a re-
          that serviced them. The fact is, the six container lines   quest with FESCO to find out if the company has
          listed above have more than 65% share of the world’s   plans to expand its container vessel fleet. We asked
          container shipping. Finding a replacement won’t be   if new container ships could ever be built by Russian
          easy. Moreover, there’s no reason to believe that there   shipyards, but our question remained unanswered.
          are companies overseas willing to carry Russia-bound   Interestingly, the need to have more container
          shipments under sanctions pressure.          ships built by the domestic shipyards is reiterated pe-
             One way out is prompted by the hotly disputed   riodically in the official discourse. Alexey Rakhman-
          import substitution, i. e. using the Russian carriers   ov, United Shipping Corporation CEO, repeatedly re-
          with specialized container fleets. No such luck. The   ported to President Vladimir Putin on the plans to
          handful of container ships available in Russia is few-  build a container ship to service Caspian Sea–Hel-
          er than a dozen, with tonnage and carrying capac-  sinki line. But, specifics have been vague.
          ity largely inferior to those of the ships serving the   Echoing the importance of domestic container-
          world’s largest container lines.             ship construction is Sergey Milushkin, Director Gen-
                                                       eral at LOTOS Special Economic Zone, who was quot-
             What we have today                        ed last year as saying:
                                                          “We are channeling a lot of effort into promot-
             Russia’s largest container shipping company is   ing  North–South  transport  corridor,  which  offers
          FESCO (Far Eastern Shipping Company). With 13   some potential for shipbuilding. Specifically, given
          container ships and 50,000 containers, FESCO’s fleet   the acute shortage of new container ships, we have   SOZVEZDYE #39
          has a total tonnage of 25,000 TEU. To put this into   discussed repeatedly the possibility for their con-
          perspective, Maersk owns 750 vessels and 4.2 million   struction to be assumed by Russian shipyards. Cur-
          containers, and its fleet has a total tonnage of about   rently in place are the draft engineering designs, with   флот
          4.1 million TEU.                             specifications currently under consideration, and in
             FESCO alone will obviously not be able to cover   case these are approved we may soon see orders for          fleet
          the needs of the Russian shippers and consignees. But   two container ships or even a series further down the
          ultimately, there’s no other marine carrier in Russia   line. We certainly hope to see LOTOS receive more
          offering containerized cargo transportation. Nor are   orders.” As far as our journalist managed to find out,
          there carriers with commercial containership fleets.   things didn’t move beyond words.
             In fact, thirty-plus years ago, in the early ’90s,   In March 2022, news came out that Vympel De-              37
          Far Eastern Shipping Company and Baltic Shipping   sign Bureau (member of the United Shipping Corpo-
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