Container customers benefit the most from low oil price

Customers, more than carriers, reap the biggest benefits from the low oil price, though carriers can achieve significant savings on the major container ships operating between Asia and North Europe, says Drewry.

Even though the low oil price brings reduced fuel costs for carriers, customers stand to reap the biggest rewards. Meanwhile, carriers are having increasing difficulties negotiating their general and frequent rate increases through shippers, who expect carriers to pass a majority of the fuel cost savings on to customers.

The latter was recently seen when a long line of carriers introduced surcharges following the congestion and long waiting periods in ports on the US West Coast, says Drewry on Monday in its newsletter Container Insight.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

IKEA stops chartering container vessels

IKEA will no longer lease space on board container ships to have its products brought to shelves across the world, the global furniture group confirms. But the company is trying to avoid congested ports.

Further reading

Related articles

Latest news

See all jobs