Global fuel markets have experienced a significant surge in recent months, with Brent crude increasing from around US$70 per barrel in early July to above US$110 in September, briefly reaching around US$131 per barrel.
The impact of rising fuel costs extends well beyond the obvious airline and shipping line fuel increases.
Fuel is an underlying cost across the entire supply chain, including:
- Local transport at origin and destination
- Airport ground handling
- Port and terminal operations
- LCL depots and handling facilities
- Container transport and delivery
- Warehousing and other associated services
The more visible increases — such as an airfreight fuel surcharge per kg, LCL adjustments per CBM or FCL BAF — are relatively straightforward to identify and account for.
The challenge is the cumulative impact of smaller increases throughout the supply chain.
For an extended period, SCC has been receiving notifications from LCL depots, airport ground handlers, port facilities and transport providers advising of increases to their operating charges, many directly or indirectly resulting from higher fuel costs.
Wherever possible, we have absorbed these increases or minimised their impact on our customers. However, as these costs continue to build across the supply chain, we cannot always sustain them indefinitely.
While many of these individual increases are relatively small, their cumulative effect is significant.
We will continue to actively manage and challenge these increases and, where adjustments are unavoidable, ensure they are communicated clearly and applied as fairly as possible.
The cost of moving cargo is more than the international freight rate — it is the total cost of the supply chain from origin through to final delivery.
Thank you for your continued support and understanding.