Topic
shipping costs
Saudi Aramco Considers New Asia Crude Pricing as Red Sea Disruption Raises Shipping Costs
Saudi Aramco is evaluating a new pricing mechanism for crude loaded from Egypt's Sidi Kerir port for Asian buyers to account for higher shipping costs after Houthi-imposed disruptions in the Red Sea. The diversion via the Suez-Mediterranean Pipeline and around the Cape of Good Hope could add about $5 per barrel to costs. Three sources with knowledge of the matter confirmed the consideration.
Logistics Iran Conflict Drives Asia-US Container Spot Rates Up 276% Since Late February
Spot container rates from Asia to the US West Coast have surged 276% since late February, driven by the Iran conflict and Strait of Hormuz disruptions. Xeneta reports that while rates flattened in the week ending July 10, capacity injections are easing pressure. Carriers have increased capacity on key trades, but further rate increases are expected in mid-July.
Logistics Are You Overpaying? Why Shippers Should Revisit Emergency Fuel Surcharges Now
Drewry warns that shippers may be paying duplicate fuel cost recovery through emergency bunker surcharges (eBAFs) introduced after the Iran conflict, while standard BAF mechanisms have already adjusted to higher prices. With bunker prices retreating from their peak, shippers are in a stronger position to negotiate the removal of eBAFs.