Fuel costs continue to put upward pressure on freight rates, and the impact is being felt across ocean, air, and trucking. Here’s what to expect:
Ocean freight carriers are increasingly applying Emergency Fuel Surcharges (EFS) on top of standard bunker charges, rather than adjusting base rates. This approach is driving less predictability in total landed costs and contributing to greater volatility in freight quotes due to more frequent adjustments.
Airfreight is the most sensitive to fuel fluctuations. Airlines are frequently adjusting surcharges, sometimes bi-weekly, while also cutting capacity, leading to higher per-kilogram costs and tighter space availability.
For truck freight, fuel surcharges are being added as a percentage of the line-haul charge, contributing to week-to-week rate volatility and reduced capacity on some lanes.
To manage the impact, consider booking shipments earlier, consolidating where possible, using quotes within their validity window, and building flexibility into your freight budget.
For more information, contact Irina Moskvitina, Team Leader – Freight Pricing or Melanie Basu, Truck Services.
