OIL PRICES AND THE EFFECT ONFREIGHT RATES

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

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AROUND THE WORLD, DROPPING FUEL PRICES ARE BEING CELEBRATED, REACHING THEIR LOWEST POINT IN OVER A DECADE.

WHILE MANY ARE REAPING THE BENEFITS OF LOWER OILPRICES, IT’S NOT TRUEFOR ALL

$10 OIL IS POSSIBLE, BUT IT WOULDN’T LAST FOREVER.

- BP’S CEO BOB DUDLEY, DURING THE WORLD ECONOMIC FORUM IN DAVOS, SWITZERLAND

WHILE MANY ARE REAPING THE BENEFITS OF LOWER OILPRICES, IT’S NOT TRUEFOR ALL

BRAZIL AND RUSSIA, TWO MAJOR COMMODITY EXPORTERS, ARE DEALING WITH A WEAKER CURRENCY, WHICH REDUCES THEIR PURCHASING POWER AND NEGATES THE BENEFIT OF THE LOWER FUEL PRICES.

THE DROP IN OIL PRICES WILL ALL HAVE A DIFFERENT EFFECT ON INTERMODAL TRANSPORTATION AND SOME WILL BENEFIT MORE THAN OTHERS.

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

A QUICK BREAKDOWN ON HOW OIL PRICES ARE CURRENTLY AFFECTING CARRIERS AND FREIGHT RATES.

RAIL

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OF TOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OF TOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OFTOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

TRUCKING

WITH LOWER FUEL COSTS, TRUCKING COMPANIES CAN CENTER THEIR OPERATIONS AROUND DEMAND, RATHER THAN FUEL SAVINGS.

THIS IS ALLOWING COMPANIES TO REWORK ROUTES AND NETWORKS TO MEET CUSTOMERS NEEDS, ADDING BOTH SPEED AND CONVENIENCE TO THEIR SERVICE OFFERINGS.

OCEANSHIPPING

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

LOWER FUEL PRICES MEANS LOWER OPERATING COSTS AND THEREFORE, MORE MONEY TO BE MADE IN SPITE OF THE WEAK DEMAND.

HOWEVER, EVEN WITH OIL PRICES PLUMMETING, MANY CARRIERS ARE SELLING SHIPS AT ROCK BOTTOM PRICES

OCEAN CARRIERS ARE BEING HIT HARDEST BY THE FAILING DEMAND, AND MANY CARRIERS ARE SCRAMBLING TO FIND A SOLUTION.

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

LOWER FUEL PRICES MEANS LOWER OPERATING COSTS AND THEREFORE, MORE MONEY TO BE MADE IN SPITE OF THE WEAK DEMAND.

HOWEVER, EVEN WITH OIL PRICES PLUMMETING, MANY CARRIERS ARE SELLING SHIPS AT ROCK BOTTOM PRICES

OCEAN CARRIERS ARE BEING HIT HARDEST BY THE FAILING DEMAND, AND MANY CARRIERS ARE SCRAMBLING TO FIND A SOLUTION.

DUE TO AN ABYSMALLY WEAK ENERGY MARKET, RAILWAY OPERATORS IN BOTH CANADA AND THE U.S. ARE TAKING A MAJOR HIT FROM THE DROPPING DEMAND FOR COAL, CRUDE OIL,AND FRACKING SAND.

STAYTUNEDSTAY POSTED WITH XENETA AS WE CONTINUE OUR IN-DEPTH LOOK AT THE PLIGHT OF THE OCEANIC FREIGHT COMPANIES, AND WHAT ONE ANALYST SAYS SERVES AS A SOLUTION TO THE EVER-DROPPING FREIGHT RATE.

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

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