And if the conflict continues, it could threaten the harvest of summer wheat, which flows into bread, pasta and packaged food for a huge number of people, especially in Europe, North Africa and the Middle East. Food prices have already skyrocketed due to disruptions in the global supply chain, increasing the risk of social unrest in poorer countries.
On Tuesday, global shipping giant Maersk announced it would temporarily suspend all shipments to and from Russia by ocean, air and rail, except for food and medicine. Ocean Network Express, Hapag-Lloyd and MSC, the world’s other major ocean carriers, have announced similar shutdowns.
Russia accounts for about a fifth of the world’s natural gas trade, and Russia and Ukraine are major exporters of wheat, barley, corn and fertilizers.
“The war is just making the global commodity situation worse,” said Christopher F. Graham, a White and Williams partner.
Jennifer McCaune, head of global economics at Capital Economics, said the global economy seems relatively isolated from the conflict. But she said the shortage of materials such as palladium and xenon used in semiconductors and cars could increase the current difficulties for these industries. The shortage of semiconductors has stopped production in car factories and other facilities, causing prices to rise and weighing on sales.
“This could add to the shortage we are already seeing, exacerbate this shortage and ultimately cause further damage to global growth,” she said.
International companies are also trying to comply with the broad financial sanctions and export controls imposed by Europe, the United States and a number of other countries that have restricted the flow of goods and money into and out of Russia.