Maersk Raises Emergency Fuel Surcharges in UK and Ireland by 20%
Maersk is raising its emergency fuel surcharge on road transport in the UK and Ireland by 20% starting October 12, and by 15% on trucking in Greece, amid surging oil prices.
Danish shipping company Maersk has decided to increase emergency fuel surcharges on road transport services in the UK and Ireland by 20% starting Monday, October 12, and fuel surcharges for trucking services in Greece by 15%, as reported by trade finance platform Trade Finance Global. Road transport in both markets is among the most diesel-intensive sectors.
The company attributed its decision to a sharp spike in oil prices resulting from escalating tensions in the Middle East, after tankers in the Gulf off the northern coast of Oman heading toward the Strait of Hormuz were hit by missiles on Wednesday evening. The attacks pushed Brent crude above $105 per barrel, an increase of over 5%, before gains trimmed to 4.1%. The waterway carries roughly a third of global oil supplies and formed the basis for the company's decision.
Maersk stated that it will shift its fuel surcharge pricing from a monthly review to a country-by-country weekly review amid volatile fuel prices. This comes at a time when diesel prices in the UK reached a record high of £2 per liter, a fuel that constitutes the largest share of operating costs for road transport trucks.
UK Transport Secretary Keir Mather said the country faces no diesel shortage, pointing to abundant national supplies and talks with other European countries regarding access to emergency reserves. In a separate context, Maersk is working on purchasing 26 vessels, each with a capacity of 18,600 containers, shifting away from a decade-long focus on factory-to-customer delivery services.
What do these terms mean?
Emergency Fuel Surcharge: An extra fee added by a carrier to freight rates to offset rising fuel costs, updated periodically as oil prices move.
Brent Crude: A major global benchmark for pricing crude oil, upon which prices for many other crude oils in the market are based.
Strait of Hormuz: A narrow waterway connecting the Gulf to the Sea of Oman, through which a significant portion of global oil supplies passes, making it a highly sensitive maritime passage.
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