Fuel Surcharges Implemented Across Transport Networks
With the average price of diesel in the UK reaching its highest level in 16 months last week, transport providers across the country began applying fuel surcharges to their services with immediate effect.
The increase is being driven largely by disruption to global oil production and distribution following the escalating conflict in the Middle East. In response, transport operators across the UK have already issued notices confirming the introduction of fuel surcharges ranging from 8% to 15%, with the majority taking effect from March 9th.
Oil prices had already been trending upward prior to the latest geopolitical developments. Since the start of the year, prices had risen from approximately $55 per barrel to around $65. Last week they surged to roughly $85 per barrel, before jumping sharply over the weekend to more than $105 per barrel and easing yesterday to below $90.
Although increases in oil prices typically take days to filter through to diesel prices at UK fuel pumps, the recent fluctuations provide a clear indication of the instability currently impacting fuel costs.
The effects of the escalating Middle East crisis are also being felt across ocean and air freight markets. Responding to the changing operating environment, carriers have begun introducing additional fuel surcharges on many routes, and in some instances have also applied war or conflict related surcharges.
While Evolution Forwarding has no option but to apply the relevant surcharges to existing tariffs, our team will continue working closely with UK and global partners to help minimise the impact wherever possible.
The situation remains fluid, and Evolution Forwarding will continue to monitor developments closely and keep customers informed as and when significant updates arise.
