Overview:
Rising fuel costs tied to global conflict and shipping disruptions are set to hit consumers across Guam, the CNMI and Micronesia, as Triple B Forwarders announces new fuel surcharge increases beginning in June and July. The company says the hikes are being passed directly from carriers amid soaring oil prices linked to the Strait of Hormuz crisis and instability in the Middle East.
HAGATNA, 13 MAY 206 (PACIFIC ISLAND TIMES) — Consumer prices in Guam and the Northern Mariana Islands are expected to surge amid soaring shipping costs and freight charges due to supply chain disruptions.
Triple B Forwarders will raise its fuel-related surcharge for Guam and CNMI customers to 32 percent, effective 07 June.
Based on the latest U.S Department of Energy diesel price data and major carrier fuel surcharge tables, the current fuel surcharge rate for Triple B is approximately 27.5 percent.
The surcharge for Hawaii will also increase to 31.5 percent, effective 07 June. For the Federated States of Micronesia, the surcharge will go up to 34.5 percent starting 12 July.
“These surcharges are strictly passed through from the carriers and are not adjusted or increased by Triple B Forwarders,” the company said in a notice sent to customers.
A fuel surcharge is an extra charge applied on top of the base freight rate to account for changes in fuel prices. It helps carriers manage fuel cost volatility without constantly adjusting base shipping rates.
Trip B said the ongoing volatility in global energy markets and continued increases in fuel costs driven by the war in Iran have prompted carriers to adjust their fuel surcharge levels “beyond prior expectations.”
According to Bloomberg, U.S oil product exports surged to a record 8.2 million barrels per day last week as countries scrambled to replace fuel supplies disrupted by the Hormuz crisis.
The crisis was triggered by the blockade of the Strait of Hormuz, a critical maritime artery that carries about one-fifth of global crude oil and significant volumes of liquefied natural gas.
Experts said the removal of millions of barrels of oil per day from the global supply chain has radically pushed the repricing of Brent crude, which surged past the US$90 threshold and peaked in the US$100 to US$120 range within weeks of the conflict’s onset.
“We understand how disruptive this type of mid-cycle adjustment can be, and we share in the concern of having to pass along another revision so quickly after our last communication,” Triple B said.
“We recognise that these changes may impact your planning and budgeting. While we strive to provide advance notice whenever possible, the pace of recent fuel cost increases has resulted in more frequent adjustments by the carriers,” the company said.
Due to their reliance on imported goods, the Pacific islands are acutely vulnerable to disruptions in shipping and freight markets, as well as to global price shocks.
Triple B is a provider of freight forwarding and logistics services between the U.S. mainland and Hawaii, Guam, Micronesia and the South Pacific…. PACNEWS
