Early assessments of the price spread between 3.5% high sulphur bunker fuel and 0.5% low sulphur fuel are indicated at as low as $40 to a high of $104 per metric tonne (pmt), according to data drawn from Platts and Taiwan’s oil refiner CPC Corp. The lower end of the scale would call into question the decision by many owners to invest in scrubbers based on the expected fuel price spread.
Calling out the container shipping lines for being the source of their own misery, Alphaliner said in its weekly newsletter that an inability to control capacity over the last 12 months has led to the current situation.
Synergy, cost efficiencies and fleet and network optimisation were the key themes that emerged from the first results presentation after Cosco Shipping Holding’s takeover of Orient Overseas Container Line and would mark the path forward even as tough conditions led to a $10.3m loss for the first half of 2018.
While the move to implement Emergency Bunker Surcharges (EBS) is a fair move by the shipping lines, a more transparent and long-term solution for implementing these charges is required, according to iContainers.
Shipping Corporation of India (SCI) has recorded a 90% surge in third quarter net profit, thanks mainly to significantly reduced bunker bills and strong contributions from its tanker fleet.
Global bunker fuel prices have continued to nosedive as they closed in on the $200-per metric tonne (pmt) mark, falling in line with crude oil prices dipping below $40 per barrel and nearing 10-year low.
Bunker fuel prices have been retreating over the course of this year, but the downward trend has been more apparent over the past month in line with softer crude oil prices.