When oil prices rise, freight costs follow quickly.
The Iran–US conflict and disruption to shipping through the Strait of Hormuz have pushed oil prices sharply higher. Brent crude surged 10–13 % in early March 2026, with analysts warning prices could approach US $100 per barrel if disruptions continue.
The Strait of Hormuz normally handles roughly 20 % of global oil shipments, making it one of the world’s most critical energy routes.
When oil prices increase, shipping lines face higher fuel costs. These increases are typically passed on through Bunker Adjustment Factors (BAF) or fuel surcharges applied to freight rates.
Why Australia Feels It More
Australia’s geographic distance from major trading partners means long shipping routes. Higher fuel prices therefore translate into disproportionately higher freight costs for Australian imports and exports.
Impact for SMEs
Businesses may notice:
- increased freight rates
- fuel surcharges added to quotes
- fluctuating shipping costs for long-haul trade lanes
Smart Strategy
- request all-in freight quotes when possible
- monitor bunker surcharges in contracts
- plan shipments earlier to avoid peak cost spikes
Fuel volatility is now a key driver of freight pricing. Understanding bunker surcharges helps Australian businesses protect margins in uncertain markets.
Source: International energy market analysis; maritime fuel reports (2026).
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed