The situation in the Middle East continues to affect global shipping, with energy costs still feeding through into fuel-related surcharges across the supply chain. While services remain stable overall, cost pressures linked to the crisis are continuing to evolve.
Uncertainty remains around talks linked to the ceasefire between the US and Iran, and normal vessel transit through the Strait of Hormuz has not yet resumed. This is continuing to keep pressure on oil prices, meaning the main impact on sea freight remains cost-related rather than operational, with higher fuel costs and surcharges still feeding through across the sector.
Emergency fuel surcharges introduced by shipping lines remain in place and continue to be reviewed weekly. In some cases, vessels are having to refuel at alternative ports, which comes at a higher cost. Where vessels then need to increase speed to maintain schedules, this can create further upward pressure.
As customers have also been advised this week, ports have now introduced additional charges in response to the same market conditions. These are exceptional measures rather than part of the usual annual review process, and have been introduced by the ports to help manage rising energy costs and ensure that services can continue to operate reliably.
There was some positive movement earlier this week, with UK haulier fuel surcharge levels easing slightly as fuel prices temporarily tracked downwards. However, oil prices have since moved upwards again, so the wider cost position remains uncertain and subject to further change.
From a service perspective, the position remains steady, with arrivals continuing to hold up well. We are not seeing any notable port congestion at present, and our core Asia and Indian Subcontinent services into the UK and Europe continue to operate normally.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team on 01376 533039 or email [email protected].
