Global oil tanker freight rates soar Daily income of shippers more than 500 times!
Longer distances are reducing ships' available capacity and pushing up freight rates. Shipowners who deliver products from South Korea to Singapore now earn more than $49,000 a day, up from $98 before the conflict.
The turmoil in global fuel markets, affected by the conflict between Russia and Ukraine, has pushed up the cost of shipping refined products such as diesel and gasoline.
Freight rates for fuels such as petrol and diesel -- known in the industry as clean tanker rates -- have more than doubled this year to their highest level since April 2020, according to data from the Baltic Exchange. On a key Asian route, shipowners delivering products from South Korea to Singapore now earn more than $49,000 a day, up from $98 before the conflict.
The same is true elsewhere. Shippers' shipping fuel from the Middle East to Japan on a route called TC-5 earned more than $56,000 a day, up from $61 a day in February, according to data from the Baltic Exchange on Tuesday. Fuel from the US to Brazil on the TC-18 route costs $37,000 a day, up from $3,800 four months ago.
Standard & Poor's Global Commodity Watch analysts Fotios Katsoulas and Krispen Atkinson said an increasing number of long-range class ships have been used to transport refined fuel since the conflict began in late February, according to media reports. Longer distances, they say, are reducing ships' available capacity and pushing up freight rates.
The last time rates for clean tankers were this high was in early 2020, when the global pandemic slashed oil consumption and forced fuel producers to export as much as possible to ease storage tank backlogs.
Anoop Singh, head of tanker research at shipbroker Braemar ACM, told the media that ship demand transporting fuel is expected to grow by 6 percent this year.
In the context of the reconstruction of the global trade path of refined oil products, the average distance contributed by continental Europe and Mediterranean countries will increase significantly, and the distance contributed by the export of refined oil products from the Middle East, the United States, and the Far East will also increase significantly: "Since 2018, the average distance of refined oil products has increased from 2,800 nautical miles to 3,097 nautical miles in 2021, and is expected to rise to more than 3,340 nautical miles in 2022 and 2023 due to the impact of the Russia-Ukraine conflict."
Factors affecting freight forwarder air freight Freight transportation
In international freight transport, one of the most concerning issues is the price of freight transport. The cost is directly related to the cost of transportation. Because many exporters do not understand the price of transportation very much, and often have a lot of extra spending, then today to understand the factors of the price of international freight transportation?
Do You Need Freight Forwarders? DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. Send an Email to firstname.lastname@example.org and get the latest freight price.
The transportation prices are different for different air freight
In the general international trade process, the price of transport according to different modes of transport, price is also different. International freight rates are divided into sea freight, air freight and rail freight.
The specific air freight freight rate can also be subdivided. For example, rail freight can be divided into passenger freight and freight. Shipping rates are also divided into tramp rates and liner rates. Tramp rates are also affected by market supply and demand relations at that time, while liner transport costs are relatively fixed. Airfreight can be divided into general goods, designated goods and special goods, and the specific transportation price is also determined according to the weight of transportation, at the same time, even if the volume is small, the weight is also counted by weight, but if the opposite is large, small weight, also according to the specific volume to calculate.
The choice of international logistics, the quality of logistics will affect the seller's store score, but also affect customer satisfaction rate.
Factors affecting the shipping price of air freight
In the process of international transportation, there are many factors affecting the price of transportation, in addition to some fuel and labor costs, there are many important factors. For example, the nature of the air freight, its own value and packaging form, as well as stowage factor and transporter's requirements for transportation, etc. There will be some fixed costs during the use of the ship, such as the ship's maintenance insurance and fuel consumption. There is also the change of supply and demand in the air freight market. In the transport off-season, transport prices are relatively low, in the transport of the peak season, transport prices will be relatively high.
Logistics advantages of the air freight in the destination country and region
In Eastern Europe, DHL has advantages in Romania, Bulgaria, Moldova, Hungary and other places while EMS has advantages in Greece, Russia, Turkey and other places. Western Europe, Northern Europe, southern Europe can use DHL international express, TNT international express, these two kinds of customs clearance capacity. TNT has a clear advantage in the Netherlands and Belgium.
For Canada, the United States and other American countries, FedEx, UPS and DHL are all suitable for their strong customs clearance capacity and fast time.
Applicable to Asia, South Korea, Japan, Thailand and other Southeast Asian countries DHL, FedEx. DHL and FedEx are time-saving, but THE price of DHL is higher. Indonesia also suggests USING DHL because it has a stronger customs clearance capacity.
In Oceania, DHL and UPS aging fast, with high prices; TNT and FedEx have lower prices but relatively few outlets. Particular attention should be paid to the "Made in China" label on the packaging of Australian products.
Middle East express ARAMEX, EMS for Middle East region. Commercial express in Africa is very expensive. In remote areas, IT is suggested to send EMS international express. EMS countries have the strongest customs clearance capacity. The air express air freight can reach many countries and regions that commercial express and postal express cannot reach, so the wide range of air freight transportation is its advantage.
Contact a professional freight forwarder- D DPFORWORLD - Professional freight forwarder in China
Do You Need Freight Forwarders from China ? DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA shipping forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you have any questions or needs about freight forwarder, please feel free to contact us, we will serve you wholeheartedly.
The China Securities New Energy Vehicle index rose as much as 4.1 percent after a strong rally in lithium-ion shares on the Chinese stock market. Brokerages said lithium enterprises would usher in marginal expectations, and currently, it may be the b…
As many researchers believe, graphene floating on the water does not repel water, but attracts it. Graphene is made of the same material as graphite-for example, found in pencils-which is why graphene has long been thought to be as waterproof as gra…
The European Union is seeking to boost energy cooperation with African countries to help wean them off dependence on Russian gas imports.Bloomberg said, recently, according to a draft EU file, African countries, especially in western Africa Nigeria,…