Sanctions and tension in vital corridors raise sea freight prices by 467% globally
Sea freight rates for commodities from energy to bulk ores are set to rise significantly at the end of the year, as geopolitical fluctuations and Economic sanctions, and a surge in production, have upended global supply lines.
Daily profits for transporting crude oil on major sea lanes saw the biggest jump this year, at 467%, while shipping prices for liquefied natural gas and commodities such as iron ore more than quadrupled, according to data "Bloomberg".
And for Crude oilprices rose following the increase in Middle East production, in addition to the rise in Asian demand for oil from the region after US sanctions on… "Rosneft" and"Lukoil" The two Russian oil giants.
At the same time, the cost of shipping Liquefied natural gas from the United States to Europe recently reached its highest level in two years, as new projects in North America were forced to commission more ships to deliver the fuel.
The price index for ships transporting bulk commodities, including grains and ores, rose to a 20-month high at the end of November, amid anticipation that a large iron ore project in Guinea will start operating, and delays caused by bad weather off China are reducing supplies.
And on a large scale. More broadly, hostilities around key sea lanes have contributed to overall increased costs.
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