Since the conflict between Russia and Ukraine, international oil prices have been soaring due to restrictions on Russia's energy exports. The price of Brent crude oil futures in London once hit 139.13 per barrel, and the price of U.S. WTI crude oil futures once exceeded 130 per barrel, both hitting new highs since 2008. Analysts said oil prices could soon top 150 a barrel and even surge to 200. The most direct impact of the surge in oil prices on the shipping industry is the increase in transportation costs.
The rising fuel price directly affects the shipping cost of the shipping company. In order to reduce the cost, the shipping company has two countermeasures: slow down the sailing speed to reduce fuel consumption; collect emergency fuel surcharges to recover the fuel cost. Both of these mean time costs and additional costs for shipping for the shipper.
In fact, the rise in oil prices does not only affect the shipping industry, but its long-term impact will gradually radiate to various industries in the future. In the near future, it will increase the price of car refueling and air ticket prices that are directly related to fuel in daily life. In the long run, it will be due to comprehensive The increase in transportation costs has gradually pushed up commodity prices in all walks of life.
