Fuel surcharges

LNG and Ship Fuel Spreads Hit Record Lows

chart of ship fuel prices
Credit: Diogo Hungria/Unsplash

Ship fuel spreads and LNG prices fall to lowest levels in years, states a Freightwaves news source.

Different dynamics for ship fuel as war effect wanes

Fuel is one of the biggest costs in ocean shipping, and fuel pricing has seen some big changes in recent months, featuring new dynamics that haven’t been seen in years.

Prior to the IMO 2020 regulation implemented on Jan. 1, 2020, most of the world’s commercial ships ran on 3.5% sulfur fuel known as high sulfur fuel...

https://mfame.guru/lng-and-ship-fuel-spreads-hit-record-lows/

The fuel surcharge: Is there a better way to manage fuel costs?

This story originally was published by FreightWaves in October 2017 and remains particularly relevant in the current supply chain environment.

Fuel surcharges have a long history in the transportation industry, dating back to the Arab oil embargo in 1973 by most accounts. While the early days of surcharges were straightforward to calculate – although wholly unfair to shippers in many cases – that is no longer true.

In the 1970s, the Department of Energy (DOE) set up a fuel surcharge formula to...

https://www.freightwaves.com/news/2017/10/3/the-fuel-surcharge-is-there-a-better-way-to-manage-fuel-costs

UPS to hike air, ground fuel surcharges on Jan. 3

UPS Inc. will raise the levels of fuel surcharges that it imposes on most of its air and ground delivery customers.

Effective Jan. 3, surcharge levels on domestic air and ground services — including transborder shipments — will rise by between 8% and 10%, according to calculations from consultancy TransImpact LLC from information posted on UPS’ website. Surcharges on international air services will increase as well, according to the website notice.

UPS’ (NYSE: UPS) surcharges on diesel and air...

https://www.freightwaves.com/news/ups-to-hike-air-ground-fuel-surcharges-on-jan-3

TuSimple tops 160,000 autonomous miles with UPS, expands routes to Florida

Autonomous truck software maker TuSimple Holdings has surpassed 160,000 robot-driven miles for UPS and is expanding routes for parcel loads to Florida from Arizona and Texas.

“The paid freight part is good, and we like to get paid for our work,” TuSimple CEO Cheng Lu told FreightWaves. “At the end of the day, the revenue we have with UPS relative to UPS and the overall industry is tiny. It’s almost laughable really, given how much they bill every year. 

“But being able to map the routes, have...

https://www.freightwaves.com/news/tusimple-tops-160000-autonomous-miles-with-ups-expands-routes-to-florida

Rising jet fuel price puts extra pressure on airfreight sector

A gray Qatar Airways jet being refueled by a truck.

The rising price of jet fuel this year is further burdening companies with airfreight shipments and could reduce limited capacity if passenger airlines opt to scuttle cargo-only flights temporarily operated since the start of the pandemic, industry officials say.

The average price for jet fuel closed Friday at $66.90 per barrel or $1.59 per gallon, more than double the cost (70 cents a gallon) to refuel an aircraft 12 months ago and nearly as expensive as before the global crisis, according to...

https://www.freightwaves.com/news/rising-jet-fuel-price-puts-extra-pressure-on-airfreight-sector

Discussions among railroads to be allowed as evidence in price-fixing lawsuits

A photograph of intermodal containers and tank cars parked at a rail yard.

U.S. District Court Judge Paul A. Friedman determined Friday that four railroads — Union Pacific (NYSE: UNP), BNSF (NYSE: BRK), CSX (NASDAQ: CSX) and Norfolk Southern (NYSE: NSC) — must include certain evidence in ongoing legal proceedings concerning allegations of price fixing that occurred in the early 2000s. 

The proceedings, which involve over 200 shippers, are about whether the railroads applied fuel surcharges on rail rates that weren’t related to fuel. The shippers argue that the purpose...

https://www.freightwaves.com/news/discussions-among-railroads-to-be-allowed-as-evidence-in-price-fixing-lawsuits

Shipper relief as ocean carriers finally scrap low-sulphur surcharges

Ocean carriers are officially scrapping the low-sulphur fuel surcharges introduced last year to mitigate the impact of the 1 January IMO 0.5% sulphur cap regulations on marine fuel.
Maintaining low-sulphur surcharges as fuel prices plunged has been a bone of contention for shippers, who have criticised carriers for being slow to ditch the additional fee.
In a customer advisory on Tuesday, CMA CGM said its LSS20 (low-sulphur surcharge) in place since 1 …

The post Shipper relief as ocean carriers...

https://theloadstar.com/shipper-relief-as-ocean-carriers-finally-scrap-low-sulphur-surcharges/

Feds: Railroads’ rate discussions can be evidence in price-fixing lawsuits

A photograph of rail yard. A city with skyscrapers is in the background.

Class I railroads’ discussions about setting local and interline rates can be included as evidence in dozens of shippers’ lawsuits over price fixing in the 2000s, various federal agencies have concluded.

Attorneys with the U.S. Department of Justice, speaking on behalf of itself, the Federal Trade Commission, the Surface Transportation Board and the U.S. Department of Transportation, determined that discussions or agreements by the Class I carriers on setting local or interline rates generally...

https://s29755.pcdn.co/news/feds-railroads-rate-discussions-can-be-evidence-in-price-fixing-lawsuits

Shippers warn of antitrust ramifications

A photograph of a freight train locomotive.

Shippers are concerned that the freight railroads’ justification over alleged price fixing that occurred in the early 2000s could open the door towards loosening antitrust laws.

The concerns are related to lawsuits from dozens of shippers aimed at four U.S. Class I railroads, CSX (NASDAQ: CSX), Norfolk Southern (NYSE: NSC), Union Pacific (NYSE: UNP) and BNSF (NYSE: BRK). The lawsuits allege that between 2003 and 2008, these four railroads applied fuel surcharges on rail rates that weren’t...

https://www.freightwaves.com/news/shippers-warn-of-antitrust-ramifications

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