Is there a correlation between oil prices and ocean freight rates?

1. Oil Prices And
The Effect On
Freight Rates

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5. Around the world,
dropping fuel prices
are being celebrated,
reaching their lowest
point in over a decade.

6. While many
Are
Reaping
The benefits
Of lower oil
Prices,
It’s not true
For all

7. $10 oil is possible, but it wouldn’t last
forever.
- BP’s Ceo Bob Dudley, During The World Economic
Forum In Davos, Switzerland

8. Brazil and russia,
two major
commodity
exporters, are
dealing with a
weaker currency,
which reduces their
purchasing power
and negates the
benefit of the lower
fuel prices.

9. The drop in oil prices will
all have a different effect
on intermodal
transportation and some
will benefit more than
others.

10. A quick breakdown on
how oil prices are
currently affecting carriers
and freight rates.

11. Rail

12. Due to an abysmally weak energy market,
railway operators in both Canada and the
U.S. Are taking a major hit from the
dropping demand for coal, crude oil,
and fracking sand.
While fuel isn’t as big a factor for railway
costs, it does make up approximately 20
percent of total operating costs, and
constitutes a major line item for rail
companies

13. Trucking

14. With lower fuel costs, trucking companies
can center their operations around demand, rather than fuel
savings.
This is allowing companies to rework routes
and networks to meet customers needs,
adding both speed and convenience to their
service offerings.

15. Ocean
Shipping

16. Lower fuel prices means lower operating
costs and therefore, more money to be
made in spite of the weak demand.
However, even with oil prices plummeting,
many carriers are selling ships at rock
bottom prices
Ocean carriers are being hit hardest by the
failing demand, and many carriers are
scrambling to find a solution.

17. STAY
TUNED
Stay posted with Xeneta as we continue our
in-depth look at the plight of the oceanic freight
companies, and what one analyst
says serves as a solution to the ever-dropping
freight rate.

18. Learn How Xeneta Can Help
You Get Insight And Intelligence Into
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