Bottom line
Higher fuel prices can affect animal protein buyers even when the underlying product price remains unchanged.
For international shipments, the commercial impact may appear through ocean freight, bunker adjustments, trucking costs and changes in shipping schedules.
MANTA view: Southeast Asian animal protein buyers should focus on confirmed CFR quotations and freight inclusions rather than assuming that a supplier’s FOB price fully represents the cost of an imported shipment.
In this article, animal protein means animal-derived protein ingredients used in permitted feed applications, not meat for human consumption.
Fuel costs are putting pressure on shipping
Energy-market disruption during September 2026 has increased uncertainty surrounding marine fuel costs and container shipping.
Reuters reported on 17 September that rising fuel expenses and additional shipping charges were contributing to higher container freight rates on certain routes.
However, freight increases are not uniform across all shipping markets.
This distinction matters because animal protein shipments often use containers, while large grain cargoes may move in bulk vessels under different freight structures.
Why a CFR quotation can change
A supplier’s CFR quotation includes the cost of the product and contracted freight to the named destination port under the agreed delivery term.
The final quoted amount can therefore change if the underlying product price or ocean freight changes before the offer is finalized.
Fuel-related adjustments may affect:
- ocean freight quotations;
- bunker adjustment factors;
- emergency fuel surcharges;
- origin trucking;
- service availability and routing.
Which charges apply depends on the carrier, route, contract and quotation.
Illustrative example: FOB unchanged, CFR increases
Consider a hypothetical animal protein shipment with unchanged product pricing but a higher freight quotation.
| Cost component | Initial quotation | Revised quotation |
|---|---|---|
| FOB product price | USD 400/mt | USD 400/mt |
| Ocean freight | USD 40/mt | USD 65/mt |
| Indicative CFR price | USD 440/mt | USD 465/mt |
In this illustration, CFR rises by USD 25/mt even though the product’s FOB price does not change.
These figures are hypothetical and do not represent current animal protein quotations or a verified increase on any particular shipping route.
Watch for double counting of fuel surcharges
Some freight quotations already include bunker-related charges. Others identify additional surcharges separately.
Buyers should confirm whether the quoted freight is fully inclusive of applicable fuel charges for the intended shipment.
Adding a separately advertised bunker surcharge to an all-inclusive freight quotation would overstate the cost.
Equally, assuming that every surcharge has been included could understate the actual amount payable.
Five questions to ask before accepting a CFR quotation
| Question | Why it matters |
|---|---|
| Is freight confirmed? | An indicative rate may change before booking. |
| Are fuel charges included? | Avoid missing or double-counting surcharges. |
| What is the quotation validity? | Prices can expire before commercial confirmation. |
| What quantity is loaded? | Freight per container must be allocated over the correct tonnes. |
| Which destination costs are excluded? | CFR is not necessarily the buyer’s complete landed cost. |
CFR cost and transfer of risk are different
Under CFR Incoterms 2020, the seller contracts and pays for carriage to the named destination port, while the risk of loss or damage transfers when the goods are delivered on board the vessel at the port of shipment.
The named destination port is therefore not the point at which transport risk automatically transfers.
Applicable delivery terms should be stated clearly in the commercial agreement.
What rising freight means for Q4 purchasing
Higher transportation costs can change the relative competitiveness of supplier origins.
A product with a lower origin price may become less competitive if freight is significantly more expensive. Conversely, a supplier with a higher product price may offer better delivered economics through a more efficient shipping arrangement.
Buyers should therefore compare offers using the same destination, shipment period, product specification and delivery basis.
Fuel-price movements alone are insufficient to determine which origin will offer the lowest CFR price.
MANTA view
In a volatile fuel market, quotation validity and freight confirmation are as important as the headline product price.
MANTA expects freight uncertainty to remain a material consideration for selected animal protein shipments during Q4 2026.
The commercial response should be to confirm freight inclusions, loaded quantity and shipping schedules before comparing competing CFR offers.
Buyers should also evaluate nutritional specifications and payment terms rather than treating CFR price alone as the final procurement decision.
FAQ
Does higher crude oil automatically increase container freight?
No. Fuel costs influence shipping economics, but freight also depends on vessel capacity, route, demand, carrier contracts and surcharges.
Can CFR prices increase even when FOB prices remain unchanged?
Yes. Higher freight costs can increase the CFR quotation without changing the underlying product price.
Should buyers compare freight per container or per tonne?
Both can be useful, but freight per tonne should reflect the actual loaded quantity to support a comparable commercial calculation.
Talk to MANTA
Send MANTA your animal protein product, target specification, origin, destination, shipment quantity and required delivery window.
Contact MANTA to discuss available CFR sourcing options.