Singapore transport and storage operators pushed wholesale charges higher in the second quarter, led by a 25.4 per cent quarterly surge in sea freight rates.

Official producer price figures from the Department of Statistics released on Oct 28 confirm that wholesale freight forwarding costs rose 10.2 per cent over the same period, while postal and courier services climbed 7.1 per cent.

The price increases hit wholesale markets after an index tracking imported fuels, lubricants and related materials spiked by nearly 79 per cent month-on-month in March. That energy shock followed the outbreak of the Iran war on Feb 28 and the effective closure of the Strait of Hormuz, an export channel that handled roughly 20 per cent of global oil and gas output. Although fuel import metrics eased later in the year, they settled well above their baseline levels.

Liquid bulk and gas transport absorbed the steepest increases because of their structural dependence on Middle East transit lanes. Crude oil and liquefied natural gas carriers faced direct rerouting requirements, while container shipping lines operating predominantly outside the Persian Gulf recorded milder cost adjustments. Container operators still absorbed indirect pressure through pricier bunker fuel and schedule disruption across regional transshipment hubs.

Air freight forwarding registered the sharpest immediate shock within forwarding segments. Air cargo handlers dealt with route deviations, constricted capacity and jet fuel premiums. Sea freight forwarders absorbed a combination of higher carrier spot rates, emergency bunker additions and war risk insurance surcharges, whereas domestic land freight forwarding pricing held steady through the period.

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