Worldwide markets collectively shuddered as Russia launched a full-scale military attack on Ukraine. Stocks and energy markets reeled as images and video of Russian rocket attacks, aerial bombardments, and tank and troop movements were broadcast online and on news networks.
The attack comes as oil prices near $105 per barrel, inflation continues to rise and an increase to the Federal Reserve’s lending rate looms. The New York Times reported that long-term sanctions against Russia’s oil and gas industries could drive petroleum prices steadily higher, which in turn would likely result in an increase in the prices business pay for raw materials and what consumers pay at the pump for fuel.
Higher petroleum costs often have a multipronged effect on the marine industry. As the base component for resins, hikes in crude oil prices directly affect resin pricing and the boatbuilders and other manufacturers who use it.
Correct Craft CEO Bill Yeargin told Trade Only Today that the biggest impact to the marine industry will be how people and markets react to the economic uncertainty. He also pointed out that Ukraine has a robust boating market, especially in the watersports category.
“Over the years, there have been many international watersports events in Ukraine, and they were always well-done,” Yeargin said. “The Ukrainians take their sports and hospitality seriously and always were great hosts to those of us who traveled to their country.”
Yeargin added said that his company has an order on the books for a Ukrainian customer and that Correct Craft has shipped many boats to the East European country.
Worldwide markets recovered somewhat by the end of the day, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all closing slightly higher from the previous day’s close.
Trade Only Today also reached out to NMMA president Frank Hugelmeyer for comment, but he was unavailable.
