Bunker prices have skyrocketed in recent weeks due to the ongoing turmoil in the oil market. For inland shipping, this immediately means higher costs, which are ultimately passed on to customers. Yet there is no code red yet. The sector continues to run, although financial pressures are clearly increasing.
The rise in bunker prices is the direct result of the situation around the Strait of Hormuz. The disruption in oil supply creates uncertainty in the market, which translates into rapidly rising fuel prices. This is not only visible at roadside petrol stations, but especially at bunkering stations along waterways.
Inland shipping companies can, in principle, pass on rising bunker prices through fuel clauses. This is also happening. Yet therein lies a major problem: the speed at which prices rise. Companies often have to advance the higher costs themselves before they can pass them on to customers.
'The work goes on, but the impact is great,' says Jean Paul van Munster of Trans Ocean Pacific Forwarding in Rotterdam. 'Especially for shipping companies with multiple ships, this can add up quickly. The cost of fuel rises by the day, while the pass-through to customers is always subject to some delay.
That delay puts pressure on cash flow. Companies temporarily finance a big gap, which directly affects their liquidity. Especially with a sudden increase like now, this can add up to significant amounts.
Bunker prices are directly linked to the global oil price, making geopolitical tensions almost immediately visible in transport costs.
The impact of bunker prices is not limited to fuel alone. Other costs in the logistics chain also rise. Suppliers of materials such as linerbags, which are widely used in container transport, increase their prices due to their reliance on petrochemical feedstock.
This creates a chain reaction. Costs rise not in one place, but in the entire supply chain. For shippers and carriers, this means that margins come under pressure, while at the same time customers show understanding for the situation.
According to the industry, at the moment there is no crisis level like earlier when the war in Ukraine broke out. Companies have had scenarios ready to go since then and can move faster. Work continues, but it is certainly not comfortable.
If bunker prices remain at this level or rise further, it becomes crucial that costs are passed on quickly and correctly. Otherwise, there will be a structural problem in companies' cash flow. You can read more about how transport and costs are structured on the ocean freight page.
The coming period will show whether the market stabilises or the pressure increases further. For now, flexibility and speed are decisive for companies operating in inland shipping and logistics.