Asia/Pacific News
Singapore Bunker Trading Margins Better Since OW Bunker Collapse
Singapore bunker trading margins have improved since the November collapse of OW Bunker, IHS Maritime 360 reports.
"(Bunker) margins have been better since the OW bunker situation and has remained so until present," said a trader at Singapore's Equatorial Marine Fuel Management Services Pte. Ltd.
Traders' margins have also remained strong despite a decline in prices, with Ship & Bunker data showing that since the summer Singapore bunker prices for IFO380 have fallen by more than half, from around $600 per tonne in July 2014 to $290 on Wednesday.
Initial bunker price rises in Singapore were reported following news of the collapse of OW Bunker, but the market is said to have since calmed.
Local players also report that credit terms, which were also tightened in response to OW Bunker's bankruptcy, are returning to normal with suppliers no longer asking for cash up front for bunkers.
Traders also predict that low bunker prices would give a boost to the bunker trading industry in general as shipping companies buy bigger volumes and seek to fix forward contracts to lock in savings.
