Fuel costs is soaring and Mediterranean Shipping announced to charge temporary fuel surcharges

The recent surge in fuel prices may lead to a loss of $1 billion 300 million in the transport industry this year. Meanwhile, Mediterranean Shipping announced that it would charge temporary fuel surcharges to alleviate cost pressures.

SeaIntel has recently said that the increasing fuel costs this year have led to the loss of cash flow of $580 million by carriers. This year, this loss is expected to reach US $1 billion 300 million.

The current tariff level is not enough to offset soaring fuel costs. SeaIntel said that in the next 6 months, freight rates must be raised by 12%~15% to make up for the negative impact of rising oil prices.

Since Trump announced a new round of sanctions against Iran, global oil prices have continued to soar and fuel costs in the shipping industry have increased. The profits of Maersk and modern merchant ships, which had released first quarter results, were all affected.

In May 21st, the Mediterranean Shipping announced in a statement on the official website that the decision to charge a temporary fuel surcharge, taking into account the cost pressure of rising fuel prices, took effect immediately.

Mediterranean Shipping said: "fuel prices have risen by more than 30% this year, up nearly 70% since last June. Recently, crude oil prices have been hovering at $80 a barrel, up to the highest point since 2014. If without urgent action, there will be no guarantee of normal operation. "

Mediterranean shipping also says that charging fuel surcharges is a last resort, and Mediterranean Shipping will deal with the challenges in a stable and sustainable way, while a long-term strategy will be developed to alleviate the current situation.