Freight rate hikes increase export costs
While war risks and oil prices push freight rates upward, experts warn that costs could multiply over long distances.
Global war risk premiums and increases in oil prices have driven line operators toward a new wave of price hikes, significantly raising export costs. Experts emphasize that these developments exert pressure on global inflation and make long routes economically unfeasible.
New Price Hike Wave from Operators
Line operators have started implementing new tariffs due to rising war risk premiums and oil prices. MSC announced a price increase of 100 dollars per container for shipments from Turkey to Europe effective October 1st. Experts state that this process will expand as other shipowners also renew their lists.
Additional Fees by Region
Navlungo Deputy General Manager Eray Özşahin stated that shipowners have changed the bunker adjustment factor, and that additional fees of 100 euros for Europe, 100 pounds for the UK, and 100 dollars for other regions have started to be applied. It is noted that increases on Far East and America lines could reach much higher rates.
Risk Premiums and Transportation Costs
It was reported that freight rates for shipments from China to Qatar have increased significantly due to high risk premiums. It is stated that the war risk alone has risen to 3,000 dollars for a 20-foot container and 6,000 dollars for a 40-foot container. This situation places heavy burdens on transportation costs.
Increases in Insurance and Tanker Charter Rates
Transbosphor Maritime CEO Mustafa Can stated that daily charter rates for large VLCC tankers have reached high levels and that insurance costs constitute the largest portion of expenses. It was noted that war risk premium rates have reached 10 percent in some regions.
Impact on Inflation and Energy Markets
Energy expert Altuğ Karataş stated that the increase in oil prices is reflected in all derivatives, primarily diesel, and that transportation price hikes reach all the way to supermarket shelves. It is stated that this situation negatively affects global inflation targets.
Long Routes Becoming Economically Unfeasible
The rise in global oil transportation costs, fuel expenses reaching historical levels, and bottlenecks in tanker supply have made certain long-distance routes economically unfeasible. It is stated that cost pressures are spreading across the entire freight market.