Two major shipping carriers are raising fuel surcharges on cargo moving to the U.S. Virgin Islands, effective April 12, in response to volatile global oil prices driven by conflict in the Middle East.
Tropical Shipping will increase its bunker surcharge on the Puerto Rico to USVI route. The surcharge on a 20-foot dry container will rise from $100 to $350, while a 40-foot container will jump from $200 to $700. The carrier is also raising charges on refrigerated containers, less-than-container-load cargo, barrels, pallets and vehicles.
Crowley has announced similar increases on the same route. Its April 12 adjustment will raise the 20-foot container charge from $200 to $400 and the 40-foot charge from $400 to $800. Vehicle charges will rise from $90 to $170. The company said the increases apply to both market and contract rates.
Both carriers cited elevated and volatile fuel costs. The increases come as U.S. crude oil has climbed above $100 a barrel following U.S.-Israeli military strikes on Iran that began in late February. Iran has effectively closed the Strait of Hormuz in response, disrupting roughly a fifth of global oil and liquefied natural gas trade.
The territory depends heavily on imported food, household goods, vehicles, building materials and refrigerated cargo. While neither carrier specified how much of the surcharge will be passed to importers and retailers, the broad range of increases suggests higher landed costs across multiple freight categories. U.S. diesel prices are also climbing sharply, adding further pressure to transport and distribution costs within the islands.
Comments
No comments yet. Be the first.