Alkagesta has been featured in The Motorship, with chief executive Orkhan Rustamov writing an exclusive opinion piece on the record transport costs now confronting shipping and commodity trading. The full comment piece is available on The Motorship.
The shipping sector must actively address escalating transport costs, which have recently reached unprecedented levels, according to an opinion piece published by The Motorship. Orkhan Rustamov, Chief Executive of Alkagesta, contends that industry stakeholders cannot simply accept these high expenses as an unavoidable aspect of global trade.
Recent data from commodities publisher Argus indicates that several critical shipping price points have set new records. These include Panama Canal transit fees, Black Sea tanker freight rates, and charges for transporting oil from the Gulf to the Far East. Additionally, Trans-Rhine freight costs have hit a 14-year high, largely due to European drought conditions.
While geopolitical instability, such as the ongoing situation in Hormuz, and the increasing impacts of climate change present significant challenges, the Alkagesta chief executive argues that attributing high costs solely to these external factors is a mistake. He warns that a failure to proactively respond risks increased scrutiny from governments and international bodies, alongside long-term damage to the industry's reputation as custodians of essential resources.
To mitigate these risks, the industry must develop and implement practical, agile solutions. This involves shipping companies integrating closely with physical commodity traders such as Alkagesta to create dynamic physical trading strategies capable of rapid adaptation. Rustamov, whose firm trades fuel oil, gasoil and jet fuel across Europe, the Mediterranean and Asia, stresses that diversity in supply sources, transportation modes, and route selection should be fundamental requirements, not optional extras.
Furthermore, the sector must prioritise scenario planning and contingency development, rather than fixating on immediate market prices. Events in 2026, similar to those in 2022, have underscored the necessity of investing in resilient, diversified supply networks. Rustamov — who set out Alkagesta's own approach to storage and route diversification earlier this year — asserts that a long-term strategic focus on these areas is crucial to prevent prices from spiralling uncontrollably during future disruptions.
More on the company's trading, storage and logistics operations is available at Alkagesta.
Sources
- The Motorship, “EXCLUSIVE: Shipping industry must act against spiralling costs” — motorship.com
- Alkagesta company information — alkagesta.com