World News
Eco Ships Will Still Command a Premium Despite 41% Bunker Price Drop
Modern eco ships should still command a premium in the charter and shipbuilding markets, despite a dramatic drop in bunker prices, The Loadstar reports.
"We still see a premium for new, modern eco-types on the chartering market and newbuildings coming in, compared with traditional/older units," said Jonathan Roach, container research analyst at Braemar ACM Shipbroking.
"Regardless of the cost of bunkers, the daily fuel saving will still be there but at lower levels in terms of dollars."
Ship & Bunker data show that IFO380 prices in Singapore have fallen 41 percent in the last six months.
According to the report, some carriers are viewing fuel economy as a lower priority following the fall in the cost of bunkers, with some considering increasing sailing speeds.
If so, the report suggests that older ships with higher fuel consumption but faster sailing speeds could have an edge, at least on niche or new routes.
"As charter rates are generally depressed compared with historical trend, the premium achieved for modern eco-ships will remain in the medium to long term," said Roach, however.
Maersk Line said recently that slow steaming will remain a feature in the box shipping industry.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 23The ship had come to Singapore from St Petersburg. -
Apr 24The arrests were both on Monday.