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Rising oil prices drive up freight rates, and shipping companies urgently charge fuel surcharges

Time:2022-03-07 Publisher:Kevin Num:2923

The price of crude oil, one of the most common commodities in the world, has been severely affected by the conflict between Russia and Ukraine, and the price has been rising. The same is true of the international oil price associated with it.

At present, the price of crude oil has risen to a high level, reaching more than $105 a barrel. According to industry insiders, the price of crude oil is estimated to reach $130 in the next few weeks.

This may have something to do with Russia being the target of sanctions. At the same time, tankers involved in transporting crude oil will likely be affected together.

Obviously, if tankers are sanctioned, there will be fewer ships available in the market, which will lead to higher freight rates for tankers. Freight rates for small and medium-sized oil tankers, represented by the Suez Canal and Aframaxes, rose more than fivefold in one day.

In this regard, the carrier is also preparing to charge a large amount of emergency fuel surcharges to the shipper, and the sea freight is expected to usher in a new round of increases.

It is understood that low-sulfur fuel oil from Rotterdam has surged by more than $30 to $731.5 a ton in recent days, up 40% since December last year.

A number of shipping companies announced the cancellation of the call

A number of shipping companies have successively announced the suspension of ships to stop Ukrainian ports. A few days ago, after HPL and ONE announced the suspension of bookings to and from Russia, including Maersk, CMA CGM also announced the suspension of requesting Russian business bookings.

Since the continuous escalation of the situation in Russia and Ukraine, a large number of maritime logistics businesses have been forced to suspend.

(Related reading: After shipping companies, freight forwarders and logistics companies also suspend operations in Russia)

Multiple flight cancellations, global aviation industry affected

As this tension continues to worsen, not only is the shipping industry affected, but the airline industry has also been hit hard. Several countries have announced to close their airspace to Russia.

According to the BBC, the president of the European Commission has announced that the European Union has imposed a blanket flight ban on Russian aircraft. Now 10 European countries including Germany and the United Kingdom have successively banned Russian aircraft from entering their airspace.

Because of this, the air freight prices of the countries involved began to skyrocket.

However, for such moves by European countries, Russia has also taken some measures. For example, aircraft from these European countries are also prohibited from entering Russian airspace.

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