World News
Low Prices Lure Ships to Russia's Far East
Relatively low prices are moving bunker sales to Russia's Far East ports and away from China, Hong Kong, and Asian ports in general, Platts reports.
The Russian ports' prices are $100 to $150 less per metric tonne (mt), sources said, and bonded bunker fuel sales in the Far East ports have doubled in a year with volumes expected to hit 250,000 mt this month.
"More container vessels are loading bunker fuel in Far East Russia, such as Vladivostok, Nakhodka and Vostochniy," one trader said.
The low prices are only effective for ships that are loading or unloading cargo at the Russian ports, however, because ships calling only to buy bunkers must pay an export tax of $200 per mt (pmt).
"If a vessel owner or operator could arrange to load even a small quantity of commodity, let's say 3-5 mt of flour or sugar or 1 mt of lubrication oil, then that vessel could also load bunker fuel free of export taxes because the vessel becomes 'cargo operation vessel,'" said a Russian supplier.
As of Wednesday, the price of IFO180 stood at $616.50 pmt in Hong Kong and $615 pmt in Singapore compared with $521 pmt in Vladivostok, according to Ship and Bunker data.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Vostochny Port |
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| Vladivostok |
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| Hong Kong | 651.00 | 1.50 | 790.00 | 5.00 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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