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Oil Prices and the Affect on Ocean Freight Rates

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Oil Prices and the Affect on Ocean Freight Rates

  1. 1. Oil Prices And The Effect On Freight Rates
  2. 2. Join The Conversation On Twitter @XENETA_AS
  3. 3. About Xeneta Container Freight Pricing Transparency With One Platform In Real Time & On Demand.
  4. 4. Are You Paying The Right Container Freight Rates? Discover Savings Potential In Real Time. Contact Us.
  5. 5. Around the world, dropping fuel prices are being celebrated, reaching their lowest point in over a decade.
  6. 6. While many Are Reaping The benefits Of lower oil Prices, It’s not true For all
  7. 7. $10 oil is possible, but it wouldn’t last forever. - BP’s Ceo Bob Dudley, During The World Economic Forum In Davos, Switzerland
  8. 8. Brazil and russia, two major commodity exporters, are dealing with a weaker currency, which reduces their purchasing power and negates the benefit of the lower fuel prices.
  9. 9. The drop in oil prices will all have a different effect on intermodal transportation and some will benefit more than others.
  10. 10. A quick breakdown on how oil prices are currently affecting carriers and freight rates.
  11. 11. Rail
  12. 12. Due to an abysmally weak energy market, railway operators in both Canada and the U.S. Are taking a major hit from the dropping demand for coal, crude oil, and fracking sand. While fuel isn’t as big a factor for railway costs, it does make up approximately 20 percent of total operating costs, and constitutes a major line item for rail companies
  13. 13. Trucking
  14. 14. With lower fuel costs, trucking companies can center their operations around demand, rather than fuel savings. This is allowing companies to rework routes and networks to meet customers needs, adding both speed and convenience to their service offerings.
  15. 15. Ocean Shipping
  16. 16. Lower fuel prices means lower operating costs and therefore, more money to be made in spite of the weak demand. However, even with oil prices plummeting, many carriers are selling ships at rock bottom prices Ocean carriers are being hit hardest by the failing demand, and many carriers are scrambling to find a solution.
  17. 17. STAY TUNED Stay posted with Xeneta as we continue our in-depth look at the plight of the oceanic freight companies, and what one analyst says serves as a solution to the ever-dropping freight rate.
  18. 18. Learn How Xeneta Can Help You Get Insight And Intelligence Into Your Global Ocean Freight Prices And Change Your Logistics Business: Request Demo Now

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