Why is container transportation so expensive?

The price of container transportation has soared to $654.38 million per day, which is mainly caused by rising costs. The fuel used in container transportation is oil. With the rising international crude oil price, the transportation cost of container transportation will increase, which will lead to the increase of transportation price. In addition to the rise in oil prices, the toll of the canal is also rising, and the employment cost of sailors on container ships is also rising.

1. The increase in international crude oil prices has led to an increase in container transportation costs. Most of the fuel used by container ships is refined oil, and the price of refined oil depends on the international crude oil price. After the international crude oil price rises, the price of refined oil will also rise, and after the price of refined oil rises, the cost price of means of transport using refined oil will also rise, which will lead to an increase in the price of selling transportation services, which is one of the reasons why the price of container shipping services has soared to $654.38 million a day.

Second, in addition to the rise in the price of crude oil, the price of the Grand Canal is also rising. The cost of container transportation services includes tolls in addition to fuel. 202 1 In the first half of the year, a ship was stuck in the middle of the Suez Canal, which suffered heavy losses when it was suspended. The Suez Canal does not allow cargo ships to pass freely, just like we have to pay tolls when we go to expressway. The toll of Suez Canal is also rising, so the cost of container ships will naturally increase.

Third, the personnel price of container shipping services is also rising. It takes a long time for container transportation services to go to sea. Therefore, the price of container ship crew will naturally be higher than that of the general crew. The faster the price rises, the faster the human resources will naturally rise. Therefore, the human resource cost of container shipping service will be higher than before, and the extra part will naturally be added to the service cost.