World News
Tough Domestic Markets Have South Korean Bunker Players Looking at More Overseas Business: Reports
Tough domestic markets are pushing South Korean bunker players to increasingly look abroad for business, according to reports.
The troubles at Hyundai Merchant Marine (HMM) and compatriot Hanjin Shipping have been well documented in these pages, and a report by IHS points to these and other troubled players - including Chang Myung Shipping, Samsun Logix, SW Shipping, and Daebo International Shipping - as the reason the country's bunker suppliers need to look beyond their domestic markets.
In some cases, local players are said to have simply stopped dealing with domestic buyers.
"We've had customers who paid late, and we don't want to take risks," a source at local bunker trader Panoco was quoted as saying.
The recent acquisition of South Korea-based KTB by the KPI Bridge Oil Group was seen as further evidence of the trend, while a number of international bunker trading houses including Integr8 were said to have reported an uptick in enquiries from South Korean bunker traders.
In an effort to re-establish market fairness and order in the country, earlier this year South Korea's Ministry of Oceans and Fisheries ordered that by mid-2017 all bunker tankers, and petroleum, oil, and lubricants (POL) tankers dedicated to providing marine fuel at the country's ports will have be registered.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
Popular Now More
-
Apr 19The firm has chartered the 7,994 DWT barge Margherita to add to the operation, operated by Fratelli Cosulich. -
Apr 18Singapore's authorities are in the process of developing a regulatory framework for a methanol bunkering licence, and plan to call for applications for the licence by the end of this year. -
Apr 19The company is looking for candidates with proven experience in bunker trading and demonstrated leadership experience.