LOGISTICS
Rogue state posturing: Iran hijacks second oil tanker / Air freight volumes fall / Shipping prices flat to lower
When was the last time you sailed past the Iranian coast on your oil tanker in the Persian Gulf? Has it been a while? You’re lucky.
In recent times, Tehran has gotten into the habit of using military force to hijack and confiscate oil freighters sailing through the Strait of Hormuz, taking two within a week.
In recent times, Tehran has gotten into the habit of using military force to hijack and confiscate oil freighters sailing through the Strait of Hormuz, taking two within a week.
 An enticing target for Iran (Photo: Pexels/Alexander Borbov) |
No one knows why Iran is displaying such pirate behaviour. On the other hand, it is undisputed that this unlawful arbitrariness violates all international maritime and commercial law.
About a third of the oil produced worldwide has to make its way through the straits off Iran. There is no alternative route. No wonder the US Navy has increased its presence there in recent weeks. When their supply of oil, the elixir of the economy, is in jeopardy, Washington doesn’t play around.
In the meantime, the air continues to thin for cargo flights. When the pandemic was disrupting supply chains, companies such as Turkish Airlines, Cargolux, Fedex, and UPS reported enormous increases in sales and profits in goods transport. Traffic performance, measured in tonne-kilometres, had risen to a record level, especially in 2021.
Importers who were self-reliant but had no access to the scarce commodity known as shipping containers rebooked their goods on air carriers. These companies demanded astronomical freight rates for their services like the shipping companies – and earned billions.
In the meantime, the volume of freight is on the decline, and as a result, prices are also returning to normal levels. According to the International Air Transport Association (IATA), global demand for air freight fell by more than 8% percent last year. European companies even had to accept a decrease of almost 12%.
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Freight rates for the week of 1-7 May 2023
Price for a 40-foot container (FEU) with change from prior week
China – US West Coast unchanged at USD 1,600
China – US East Coast unchanged at USD 2,500
China – Northern Europe unchanged at USD 1,500
Northern Europe – China, down 7.5% USD 600
China – Southern Europe unchanged at USD 2,300
Southern Europe - China, unchanged at USD 550
US East Coast – Northern Europe, down 5.3% to USD 900
Northern Europe – US East Coast, unchanged at USD 4,800
China – US West Coast unchanged at USD 1,600
China – US East Coast unchanged at USD 2,500
China – Northern Europe unchanged at USD 1,500
Northern Europe – China, down 7.5% USD 600
China – Southern Europe unchanged at USD 2,300
Southern Europe - China, unchanged at USD 550
US East Coast – Northern Europe, down 5.3% to USD 900
Northern Europe – US East Coast, unchanged at USD 4,800
04.05.2023 Plasteurope.com [252700-0]
Published on 04.05.2023
German version of this article...