Loading...
The crisis in the Middle East doesn't seem to end anytime soon, and the ongoing conflict has already created a fuel and energy shortage across the globe. Now, as per the Indian shipping ministry, the conflict in West Asia has pushed the shipping freight charges for cargo for the war-torn region up nearly ten times in the case of containers and more than doubled rates for Liquefied Petroleum Gas and crude oil.
Average maritime freight charges for LPG have risen to about $207 per tonne as of May 15 from $94 per tonne before the war, while crude oil freight charges have risen to $28.6 per tonne from $14 per tonne. Freight costs for containers have soared to $2,000 per twenty-foot equivalent unit (TEU), compared to $203 before the war. The hike in charges is because of things like uncertainty and increased risks in the region. Asked about the issue, the additional secretary in the shipping ministry, Mukesh Mangal, said the ministry is closely watching the rates and has issued an advisory on transparency in shipping prices.
As per the reports, the war has resulted in a fall in average monthly shipping services from Indian ports to West Asia from 444 vessels to just 125. Data indicate that the maritime freight charges have been rising in the case of LPG since the conflict broke out, in the case of crude and container, the rates had peaked by the end of April. As of May 15, there has been a slight moderation. “This situation is dynamic, and we are closely monitoring developments. Freight charges will come down once the war is over', said an official.
For more such news and updates, visit CARGOCONNECT.
The crisis in the Middle East doesn't seem to end anytime soon, and the ongoing conflict has already created a fuel and energy shortage across the globe. Now, as per the Indian shipping ministry, the conflict in West Asia has pushed the shipping freight charges for cargo for the war-torn region up nearly ten times in the case of containers and more than doubled rates for Liquefied Petroleum Gas and crude oil. Average maritime freight charges for LPG have risen to about $207 per tonne as of May 15 from $94 per tonne before the war, while crude oil freight charges have risen to $28.6 per tonne from $14 per tonne. Freight costs for containers have soared to $2,000 per twenty-foot equivalent unit (TEU), compared to $203 before the war. The hike in charges is because of things like uncertainty and increased risks in the region. Asked about the issue, the additional secretary in the shipping ministry, Mukesh Mangal, said the ministry is closely watching the rates and has issued an advisory on transparency in shipping prices. As per the reports, the war has resulted in a fall in average monthly shipping services from Indian ports to West Asia from 444 vessels to just 125. Data indicate that the maritime freight charges have been rising in the case of LPG since the conflict broke out, in the case of crude and container, the rates had peaked by the end of April. As of May 15, there has been a slight moderation. “This situation is dynamic, and we are closely monitoring developments. Freight charges will come down once the war is over', said an official. For more such news and updates, visit CARGOCONNECT.
Indian Prime Minister Narendra Modi, during his visit to Europe, stated India is rapidly working with international partners to build robust energy supply chains, aiming to cut the energy crunch that arose from the current geopolitical crises. During his visit to the Netherlands, PM Modi addressed a gathering of the Indian community, calling the current era a decade of calamities and uncertainty. Modi highlighted the COVID-19 pandemic, subsequent wars, and now an energy crisis, warning that if the current scenario is not resolved quickly, years of progress and achievements could be lost, delivering a huge blow to the global economy. Speaking about the challenges facing the international community, the Indian Prime Minister said humanity is going through an exceptionally turbulent phase with uncertainty and economic stress. He added that the world first faced the Coronavirus Pandemic, followed by geopolitical conflicts and energy concerns, and these overlapping crises are testing the resilience of the global system, while warning of the consequences of inaction. Further, he said that unless we unite, the world will not be able to address the challenge of global security. PM Modi's remarks came during his address to the Indian diaspora in the Netherlands, where he highlighted the growing strategic, economic, and cultural cooperation between India and the Netherlands. The Indian Prime Minister is currently on a five-nation visit from May 15 to May 20, with the UAE being the first stop of the diplomatic tour. Earlier, during his meeting with the senior leadership of A.P. Moller–Maersk in Gothenburg, Sweden, the Indian Prime Minister Narendra Modi underscored India’s growing push to modernise its maritime ecosystem and position itself as a major global logistics and shipping hub. During the interaction, PM Modi met Maersk Chairman Robert Maersk Uggla on the sidelines of his engagements in Sweden, where he has been holding talks with European industry leaders and government officials. Discussions reportedly centred on opportunities for investments in India’s ports, logistics infrastructure, and sustainable maritime solutions. The talks assume significance as India accelerates efforts under its Maritime Amrit Kaal Vision 2047, aimed at transforming the country’s shipping and logistics capabilities through port-led development, improved multimodal connectivity, and adoption of green technologies. The government has been actively engaging global maritime companies to attract investments and technological expertise into the sector. For more such news and updates, follow CARGOCONNECT.
Prime Minister Narendra Modi on Saturday said that India and the Netherlands were working together to develop a trusted, transparent, and robust supply chain architecture, while the world is facing an era of overlapping global crises. Addressing members of the Indian diaspora during a community event in The Hague, part of his ongoing five-nation diplomatic tour, PM Modi described the current decade as a “decade of disasters,” referring to a series of global disruptions, from the Covid-19 pandemic to armed conflicts and the emerging energy crisis. Speaking about the challenges facing the international community, the Indian Prime Minister said humanity is going through an exceptionally turbulent phase with uncertainty and economic stress. He added that the world first faced the Coronavirus Pandemic, followed by geopolitical conflicts and energy concerns, and these overlapping crises are testing the resilience of the global system, while warning of the consequences of inaction. Further, he said that unless we unite, the world will not be able to address the challenge of global security. PM Modi's remarks came during his address to the Indian diaspora in the Netherlands, where he highlighted the growing strategic, economic, and cultural cooperation between India and the Netherlands. The Indian Prime Minister is currently on a five-nation visit from May 15 to May 20, with the UAE being the first stop of the diplomatic tour. For more such news and updates, visit CARGOCONNECT.
