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Shippers are bracing for emergency bunker adjustment factor surcharges as crude oil rose above $105 a barrel after Russia's invasion of Ukraine, with some analysts forecasting $130. Rotterdam low-sulphur fuel oil jumped more than $30 a ton to $731.50, up about 40% since December.
Higher bunker fuel costs feed directly into ocean freight surcharges, raising the cost of seaborne feed ingredient imports and supporting energy-linked price pressure.
theloadstar.comMike WackettFeb 25, 2022After 26 past bullish logistics events, Crude Oil (WTI) moved a median +1.2% over 5 sessions (58% higher; middle half -5.1% to +9.5%), and +2.0% over 20.
After 22 past bullish logistics events, Crude Oil (Brent) moved a median -0.7% over 5 sessions (45% higher; middle half -5.7% to +4.5%), and -1.2% over 20.
After 113 past bullish logistics events, ULSD / Diesel moved a median +0.6% over 5 sessions (54% higher; middle half -2.8% to +4.2%), and +0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Crude and bunker fuel prices surged after the Russian invasion (Feb 25), raising vessel operating costs and pushing freight rates up ahead of March 1.
