Flag of Japan. Photo by Kulbir on Pexels.com
Ocean freight and air cargo costs in Japan surged to record levels in April as the conflict in Iran drove up fuel prices and disrupted key global shipping routes, according to the Bank of Japan.
The central bank reported that ocean cargo shipping prices rose sharply, marking another all-time high as tensions in the Middle East pushed up energy-related costs.
Crude tanker rates in particular spiked after heightened risks in the Strait of Hormuz, a critical passage for global oil and gas shipments, raised concerns over maritime security.
The BOJ said the ocean freight transportation index jumped 59.1 percent year-on-year to 234.2, based on a 2020 benchmark of 100, setting a new record for the second consecutive month.
Air cargo prices also climbed significantly, with the international index rising 40.6 percent compared with the same period last year.
The broader services producer price index, which measures prices companies charge each other for services, increased 3 percent to 114.3 during the month.
Of the 146 service categories tracked, 116 recorded increases while only 10 saw declines, reflecting broad-based upward pressure on costs.
A BOJ official said the central bank would continue closely monitoring developments in shipping routes and global commodity prices amid ongoing geopolitical risks.