Russian Player Reports Massive Drop in Bunker Volumes for First Half of 2016

by Ship & Bunker News Team
Thursday August 11, 2016

Russia's FESCO Transportation Group (Fesco) has reported that revenues of the company's bunkering division fell to $3.1 million during the first half of 2016, compared to $66.2 million during the same period of 2015.

"Bunkering volumes sharply reduced due to the Group's decision to complete risky and capital intensive bunkering operations by large tankers and concentrate on railway delivery of fuel and on bunkering exclusively via its own terminal in the port," explained Fesco.

For the six months to June 30, 2016, the company reported 58,400 tons, compared to 287,800 tons in the period last year.

Overall, Fesco says the Russian transportation market has shown some signs of improvement over the past few months but remains volatile.

"The Far East region market continues to exhibit negative trends, driven by reduced import levels and the relative attractiveness of alternatives to the Far East ports, in particular impacted by historically low Deep Sea freight rates that divert import flows to other destinations," it said.

Last month Ship & Bunker reported that bunker volumes in the Russian Far East had fallen so much that local players are at risk of bankruptcy.