West Asia Conflict Doubles LPG, Crude Oil Freight; Container Rates Surge Ten-Fold

West Asia conflict has pushed shipping freight charges for cargo bound for the region up nearly ten-fold in the case of containers and more than doubled rates for LPG and crude oil, the shipping ministry said.

While average maritime freight charges for LPG have increased from $94 per tonne before the war to around $207 per tonne as of May 15, crude oil freight charges have risen from $14 per tonne to $28.6 per tonne. For containers, freight charges have surged to $2,000 per twenty-foot equivalent unit (TEU), compared to $203 before the conflict.

The increase in charges is due to factors including uncertainty and heightened risks in the region.

Responding to a question at a media briefing on developments in West Asia, additional secretary in the shipping ministry, Mukesh Mangal said the ministry is monitoring the rates closely and has issued an advisory regarding transparency in shipping prices.

TOI has learnt that since the war Indian ports’ average monthly shipping services to West Asia has dropped from 444 vessels to barely 125.

Data show that the maritime freight charges have been rising in the case of LPG since the conflict broke out, in case of crude and container the rates had peaked in April end. There has been slight moderation as on May 15.

“Ths situation is dynamic and we are keeping a close watch on the developments. Freight charges will moderate when the conflict ends,” said an official.