Supply Chain Research

Container-line MSC has issued a “temporary”, “last resort” increase in bunker fuel surcharges after Brent-blend oil prices rose above $80 barrel. That’s unlikely to change given forward markets for oil suggest a drop of just 3% by year end. The risk to corporate profits can be seen in the disparate performance bunker fuel charges (up 28% year-to-date) and container rates (just 2% higher). The first quarter of the year saw a 29% spread between fuel and rates while in the second quarter that widened to 56% points. MSC may partly be a victim of its own success after U.S.-inbound volumes rea...