Petroleum transport is the transportation of petroleum and derivatives such as gasoline. Petroleum is transported via rail cars, trucks, tanker vessels, and through pipelines.
Petroleum transport is the transportation of petroleum and derivatives such as gasoline. Petroleum is transported via rail cars, trucks, tanker vessels, and through pipelines.
Pipelines are used to transport oil from the wells to refineries and storage facilities. Pipelines are viewed as the most cost-efficient way to move oil on land. First, the oil is collected at the wellhead or some area where the oil is stored.
Let’s start with the obvious. As you can probably guess, one of the most crucial factors to calculate freight costs for any type of transportation mode is fuel. Oil prices are constantly changing, and they are closely related to the cost of bunker fuel.
Seasonal demand of commodities is also a key factor in calculating oil & gas freight rates. Because of changes in supply and demand, certain commodities become more expensive to ship during their peak seasons.
Shipping is a global industry, but not every country uses the same currency. We will not discuss the monetary policies of governments, but currency exchange rates have a significant impact on oil & gas freight rates, too. Even though the U.S. Dollar is the most accepted currency for the international U.S.
In the simplest terms, ocean freight itself is a commodity. Similar to physical commodities, such as oil, natural gas, or steel, when demand is higher than supply, the value of the commodity rises. As we have seen an instant increase in freight rates after Hanjin’s bankruptcy.
Seasonal demand of commodities is also a key factor in calculating ocean freight rates. Because of changes in supply and demand, certain commodities become more expensive to ship during their peak seasons.
In the simplest terms, ocean freight itself is a commodity. Similar to physical commodities, such as oil, natural gas, or steel, when demand is higher than supply, the value of the commodity rises. As we have seen an instant increase in freight rates after Hanjin’s bankruptcy.
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