Why freight rates are climbing faster than oil prices in Asia-Pacific
As oil prices soar, companies are assessing how to minimize the impact on costs. TransportBT finds out more.
Businesses this year have been dealing with price pressures when moving anything from components to finished goods. In Singapore, the benchmark for diesel and heating oil across the region hit a recent high of US$210 per barrel on Sep 16, up from an already high US$111 on June 26, according to Argus.
In this episode of Transport BT, a podcast from The Business Times, Derryn Wong speaks with Niki Frank, chief executive for Asia-Pacific at DHL Global Forwarding. He explains what happens to supply chains when fuel prices spike, and why the cost on the invoice is only the visible part.
Why listen
- Why freight outpaces oil Fuel is one component of freight rates, Frank says, but not the biggest. Global air and ocean freight demand is around 5 per cent higher this year while capacity has been squeezed, and that gap moves prices more than fuel does.
- Price is no longer the first question Customers now ask about reliability and certainty. Frank explains how years of disruption have shifted thinking from efficient supply chains to resilient ones.
- Singapore compared against its neighbours Frank explains why the republic, the most connected economy in DHL’s global index, feels the shock immediately but has more room to adapt. Manufacturing economies such as Vietnam, Malaysia and Thailand, and larger domestic markets such as Indonesia and the Philippines, face different pressures.
- The cheapest deal can cost you most When capacity tightens, carriers cut the lowest-yielding customers first. Frank explains how to find a middle ground between cost and resilience.
- Data centres and a US$200 doomsday Frank describes how the data centre build-out is driving cargo growth, from heavy equipment to white-glove server handling, and what could finally break demand if oil doubled.
The conversation is a useful guide for anyone asking who really pays when oil prices crunch. Listen now.
Discover more episodes at bt.sg/podcasts. Got feedback? Email us at btpodcasts@sph.com.sg.
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Written and hosted by: Derryn Wong (derrynwong@sph.com.sg)
With Niki Frank, CEO Asia Pacific at DHL Global Forwarding
Edited by: Rachna Raghu & Claressa Monteiro
Produced by: Derryn Wong, Rachna Raghu & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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BT Correspondents brings together some of The Business Times’ most trusted columnists in a single series. Featuring Mark to Market, WealthBT, TransportBT, and PropertyBT, weekly episodes deliver expert analysis and clear perspectives on stocks, wealth, mobility, and real estate. It is essential listening for professionals who want context, clarity, and depth.
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