As vessel fuel represents up to 60% of carrier operating budgets, fluctuations in petroleum pricing feeds like bunker fuel oil or diesel constitute the foremost determinant that ocean freight companies account for when continually adapting rate pricing models extended to shipper customers in balancing margins.
1. Fuel costs make up a majority of shipping operation expenses
2. Changes in fuel pricing therefore directly impacts overall budgets
3. Carriers take fuel price shifts into account when adjusting the freight rates offered to shippers
4. The ultimate goal is protecting slim profit margins in face of volatile bunker costs