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Global Impacts of Rising Fuel Costs on Freight Transportation

Explore how increasing fuel prices are affecting global freight transportation costs across air and ocean routes, and the implications for the economy. Consider solutions like energy conservation and renewable sources. Connect with us for more information.

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Global Impacts of Rising Fuel Costs on Freight Transportation

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  1. Energy Issues and the Impacts on Freight Transportation - Jo Frigger

  2. Global Economy Requires Global Transportation Cost of Transportation Increases with Cost of Fuel

  3. Global Average Fuel Cost (Price per Gallon) USA Gasoline US$ 3.20 Diesel US$ 3.30 Europe Gasoline US$ 6.30 Diesel US$ 5.30 China Gasoline US$ 1.90 Diesel US$ 1.15 Chile Gasoline US$ 4.55 Diesel US$ 3.20

  4. Jet Fuel (Price per Gallon) New York US$ 2.14 Singapore US$ 1.95 Anticipated Increase from 2005 to 2006 44% Anticipated Cost Increase for all Air Carriers Worldwide US$ 20 Billion

  5. Air Cargo Fuel Surcharges 2005 January US$ 0.30 per Kg May US$ 0.40 per Kg 2006 January US$ 0.50 per Kg May US$ 0.60 per Kg 2005 2006

  6. JFK / FRA – May 2005 Freight Rate US$ 0.45 per Kg (45.0 %) Fuel Surcharge US$ 0.40 per Kg (40.0 %) Security Surcharge US$ 0.15 per Kg (15.0 %) Total Cost US$ 1.00 per Kg (100 %) JFK / FRA – May 2006 Freight Rate US$ 0.45 per Kg (37.5 %) Fuel Surcharge US$ 0.60 per Kg (50.0 %) Security Surcharge US$ 0.15 per Kg (12.5 %) Total Cost US$ 1.20 per Kg (100 %) (20% increase from 2005) Average Air Freight Rate (1000 Kg)

  7. HKG / LAX – May 2005 Freight Rate US$ 2.50 per Kg (82.0 %) Fuel Surcharge US$ 0.40 per Kg (13.0 %) Security Surcharge US$ 0.15 per Kg ( 5.0 %) Total Cost US$ 3.05 per Kg (100 %) HKG / LAX – May 2006 Freight Rate US$ 2.50 per Kg (77.0 %) Fuel Surcharge US$ 0.60 per Kg (18.0 %) Security Surcharge US$ 0.15 per Kg ( 5.0 %) Total Cost US$ 3.25 per Kg (100 %) (6.5% increase from 2005) Average Air Freight Rate (1000 Kg)

  8. Antwerp – New York | Jan – Mar 2006 40’ Container US$ 1,200.00 (59.0 %) Bunker Surcharge US$ 846.00 (41.0 %) Total Cost US$ 2,046.00 (100 %) Antwerp – New York | Apr – Jun 2006 40’ Container US$ 1,200.00 (58.0 %) Bunker Surcharge US$ 872.00 (42.0 %) Total Cost US$ 2,072.00 (100 %) Average Ocean Freight Rate

  9. Hong Kong – Long Beach | Jan – Mar 2006 40’ Container US$ 1,800.00 (75.0 %) Bunker Surcharge US$ 590.00 (25.0 %) Total US$ 2,300.00 (100 %) Hong Kong – Long Beach | Apr – Jun 2006 40’ Container US$ 2,250.00 (78.0 %) Bunker Surcharge US$ 635.00 (22.0 %) Total US$ 2,885.00 (100 %) Average Ocean Freight Rate

  10. Conclusion • Transportation and Fossil Fuel • Conservation • Renewable Sources of Energy

  11. Thank You for Your Attention - Questions?

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