While the pandemic, shortage of containers and tonnage had already pushed the freight rates through the roof. The Russia – Ukraine war has further catapult the freight rates with rising insurance rates and oil costs. Container rates have increased tenfold in a fortnight, while war insurance premiums have increased by 6%. As observed in the first week of March, Drewry’s world container index was up by 3% over February last week, for a forty feet container. A 20 feet container that moved from Nhava Sheva to St Petersburg for about $5000 is now being charged around $16000. Industry experts predict the war will further drive the oil prices ultimately making ocean freight more expensive.
