Soaring Bunker Costs To Impact Ocean Freight?
Low-sulphur bunker prices have risen significantly again this week, which has led to an overall increase of one-third since the beginning of this month. The costs are undoubtedly going to impact ocean freight rates further, especially on longer voyages, such as Asia-Europe round-trips.
With a Russian oil ban being implemented soon, from at least the US and UK, traders are predicting oil could hit a record high of $200 a barrel by the end of March – this would be double the price than at the beginning of 2022.
Ocean freight carriers, who have been reporting record profits since the start of the pandemic, are likely to be looking to claw back these increases through ocean freight prices and bunker adjustment surcharges.
Forecasters had been suggesting that demand on the Asia-Europe trade was likely to drop off, which would potentially have seen the escalated ocean rates begin to fall. However, the crisis in Ukraine, and subsequent rise in oil prices, may have halted progress on that front.
As ever, your Jenkar team are monitoring the situation closely. Should you require any further information, or require ocean freight pricing, then please do not hesitate to contact us.