Why are Fuel Costs High and How it Affects the Shipping Industry?
Local and international oil prices spiking from left to right has become one of biggest problems in the industry today. Not only does it affect drivers and transportation servers with expensive gas, it also hurts commuters and those who sincerely rely on public and private transportation in their everyday lives because of increased transportation rates.
As a result, shipping industries have no choice but to act with the surge and demand higher shipping costs for their local and worldwide services. International freight forwarding companies like Excelsior experience this, but it still does not hold them back from giving you exceptional, time-conscious, and individualized customer service.
So, what exactly caused these fuel cost hikes? In light of recent events, the reasons only boil down to the following:
Since major economies have reopened after the lockdowns due to the COVID-19 pandemic, demands for oil and gas have soared. With the Philippines’ dependence on international oil companies, any sudden move from their international oil suppliers will affect them. As of 2021, the top 5 oil producers in the world are the United States (US), Saudi Arabia, Russia, Canada, and China, respectively.
Russia vs. Ukraine War
The world sanctioned Russia economically when Russia invaded Ukraine on February 24, 2022.In return, Russia started reducing their international oil sales, leading to lower supply and higher costs. Even with alternative oil sources, they are severely limited, and Russian oil remains more preferred.
In Excelsior, their international freight forwarding services might be directly affected by the aftermath of strict lockdowns and the wars. However, their shipping expertise to a wide range of industries would never be second best, as they still aim to deliver you high-quality services with the current resources.
If you wish to learn and read more, their infographic about reasons for fuel cost hikes may help you all the way.