EMEA News
Russian Far East Ports Price Advantage Diminishes as Global Prices Fall
Plunging oil prices may mean that carriers will no longer need to divert services to Eastern Russian ports, according to Drewry.
Drewry said that some shipping companies have in the past chosen to refuel in ports such as Vostochny in Russia's Far East, where data from Ship & Bunker shows IFO180 bunker prices in January earlier this year were as much as $170.50 per metric tonne (pmt) cheaper than in Singapore, a spread that last week had narrowed to $10 pmt on October 16, 2014.
Brent Crude has slid almost 25 percent from its high in June.
In the same time period, IFO380 has slid over 22 percent Singapore and dropped just over 24 percent in Rotterdam as of today.
The possible change may be to the benefit of backhaul shippers, Drewry speculated, who may be able to see transit times improve for ships that no longer stop in the Russian ports.
In the meantime, Russia's bunker markets are also looking at a significant change in the near future as Emission Control Area (ECA) regulations come into play.
