Businessday has reported that Maersk Line, the world’s largest container shipping group has joined rival Mediterranean Shipping Co (MSC) in raising freight costs in response to rising oil prices, which surged to their highest levels in four years.
Maersk Line in a note to customers claimed that bunker prices for marine fuel have risen more than 20 percent since the start of the year, and that in Europe prices have hit $440 per metric ton, the highest since 2014, which it said has forced it to introduce an “emergency bunker surcharge”.
Almost 90 percent of the world’s good trade travels by sea, and the higher fuel costs are ultimately likely to be passed on to consumers, with other shipping lines the following suit.
Aside, passing on the extra costs to consumers, what else can the shippers do?
Use of LNG as a Shipping Fuel. Explore cheaper and cleaner fuels like natural gas.
To read more please follow this link:. Rise in Shipping Cost; Need for Truck to Ship LNG Bunkering by Olufola Wusu
Olufola Wusu is a Commercial/Oil and Gas and I.P. Lawyer with Megathos Law Practice based in Lagos.
Olufola Wusu Esq. © 2018
Olufola Wusu is noted for his “dynamic practice” and “commercial acumen”. He is praised for his “first-rate skills” in assisting clients
Image Credit: World Maritime News Mobile