Over the past couple of months, the Xport Blog has written on rising bunker fuel prices. To accommodate these increased costs, increased bunker rates started to occur on June 1st, 2018. On July 1st, many of the largest Carriers implemented an additional “Emergency Bunker Surcharge” (EBS) that increases Carrier rates for all US exports.
This EBS is driven in part by the following:
- First, a decreased supply of oil production from Venezuela due to political instability.
- Second, the Wall Street Journal’s Ian Talley reports that Iran is experiencing a significant decline in oil sales due to tough new sanctions being applied by the US.
- Third, Saudi Arabia and Russia, as the two largest members of OPEC, have not stated definitely they will increase oil exports, thus setting the stage for increased crude prices worldwide.
At XportForwarding.com, we will continue to monitor, track and provide insights to these current events that will affect market rates for shipping cargo. Through our “value rate” pricing index, we work to minimize the impact of any price increase that shippers might experience.
To see the impact of the EBS on the Xport Value Rate pricing index, go to www.xportforwarding.com and perform unlimited free searches to identify new pricing between your favorite POLs and PODs. Remember to check pricing often as rates will be incrementally updated across the index over the month of July as Xport negotiates new rates with Carriers.