Alkagesta chief executive Orkhan Rustamov has called on shipping companies and commodity traders to respond jointly to rising transport costs, in an opinion article published by The Motor Ship. According to Alkagesta’s account of the piece, Rustamov examines the structural pressures behind freight costs reaching record levels and argues that the industry cannot simply treat higher transport expenses as a permanent condition it has no ability to address.
The company says the article draws on developments across several shipping markets. These include tanker freight rates in the Eastern Mediterranean and on regional trade routes, the cost of shipping from the Gulf to the Far East, and Trans-Rhine freight costs, which it describes as reaching a 14-year high. Alkagesta’s summary does not give individual freight-rate figures or specify the periods covered by those examples, presenting them instead as the market backdrop to Rustamov’s argument for action.
Rustamov sets out agility, diversification of supply chains and scenario planning as the main elements of a practical response, according to the company. His argument places responsibility on both shipping businesses and traders, rather than treating the rise in freight costs as a matter for ship operators alone. The emphasis is on closer alignment between those businesses as they work to develop supply networks that can adjust when conditions change.
The risks highlighted in the piece include sudden geopolitical and environmental shocks, Alkagesta says. Rustamov links the proposed industry response to the need for supply networks that remain resilient while retaining the flexibility to adapt to such disruptions. Published as an opinion contribution in the maritime publication The Motor Ship, the article makes the case for active preparation and co-operation rather than passive acceptance of escalating shipping costs.
Read the original announcement on Alkagesta.