Thousands of Russia-linked shipping containers are causing a 'nightmare' situation in the Port of Rotterdam

• Port of Rotterdam CEO Allard Castelein said sanctions against Russia created a "nightmare" situation.
• The key European thoroughfare has a backlog of about 4,500 Russian-linked shipping containers.

Sanctions against Russia created a backlog of 4,500 shipping containers at the Port of Rotterdam.

The CEO of the Netherlands port, Allard Castelein, told Bloomberg that the inspection process for thousands of shipping containers linked to Russia has become a "nightmare." Amid sanctions against Russia for invading Ukraine, the Russian-linked containers are set aside for a careful inspection in order to certify that moving the containers won't breach any of the sanctions, he told the publication.

"You need to isolate them, set them apart, and then do physical inspections of the containers before they can be released," he told Bloomberg. "That exercise delivers constraints on the value chain in terms of physical space, manpower and time," he added.

Earlier this month, the European Union expanded its list of sanctions against Russia to restrict the export of luxury-made goods to the nation. In March, the US announced a ban on Russian oil imports, but European countries have been hesitant to limit Russian energy imports.

Poland announced a ban on Russian oil and gas imports on Wednesday and called for other countries in the EU to follow suit. The European Union gets about 40% of its natural gas from Russia and the Port of Rotterdam serves as a key hub for the energy imports.

About 10% of the vessels that come through the port are linked to Russia in some way, with many of them linked to energy, per Castelein. The Port of Rotterdam imports about 30% of Russian crude oil, according to the port's website.

The congestion comes at a time when ports across the world are only beginning to recover from the supply-chain snarls caused by the coronavirus pandemic.

Amid concerns over how the port will continue to handle Russian-linked shipping containers, Castelein said that in the likely event that the number of containers continues to increase or fully block the terminals, he is considering creating a separate space to stow the glut of Russian-linked shipping containers.

The congestion at the Port of Rotterdam is just one indication of the larger impact of Russia's invasion into Ukraine on the global supply-chain. Last month, experts warned shipping rates could triple as the conflict in the Black Sea sends insurance rates higher and pushes more freighters to reroute.

Three of the world's largest shipping companies temporarily halted all shipments to and from Russia amid the nation's aggression on Ukraine. In February, the UK asked ports to bar Russian ships from entry, including any vessels "owned, controlled, chartered, or operated by any person connected with Russia." At the time, Russian Prime Minister Mikhail Mishustin threatened retaliation against any countries that banned Russian ships from their ports.