Singapore shippers impose extra fees as Middle East war disruption raises fuel and freight bills
SINGAPORE, May 1 — Freight forwarders in Singapore say profits have fallen about 20 per cent as the Middle East conflict pushes up fuel, insurance and shipping costs.
Some local operators said charges have doubled on certain routes, while delivery times have stretched as vessels avoid danger zones, Singapore-based news outlet CNA reported today.
“With the longer transit time, (it) means they burn more fuel. So then it leads to the cost increase,” local freight forwarder Penanshin Air Express executive director Bernard Chan was quoted as saying.
One major bottleneck is the Suez Canal, a key trade route linking Asia and Europe that normally carries around 12 per cent of global commerce.
Since fighting began in late February, some cargo has been diverted around the Cape of Good Hope in South Africa instead of using the shorter Suez passage.
Chan said a Europe-to-Singapore shipment that once took about 21 days now needs 45 to 55 days via the longer route.
He added diesel prices have jumped sharply, while freight rates to the Middle East have in some cases surged as much as 10 times.
His company has introduced a flat surcharge of between S$30 and S$50 ((RM105–RM175) per shipment to offset higher operating costs.
Another Singapore freight forwarder, Dimerco Express Group, said freight rates have climbed about 30 per cent in recent weeks.
The firm added some shipping lines are skipping ports such as Dubai and heading directly to Europe or the United States.
For urgent cargo such as semiconductors and electronics, some companies are switching to air freight as flight operations gradually recover.
Industry players said there is no clear timeline for stability to return, with longer delays and tighter margins expected to continue.
