World News
Falling Bunker Prices Boost Tanker Earnings
Shipbrokers Charles R. Weber Co. (Charles Weber) has said that falling bunker prices are giving a particular boost to tanker operators, Tradewinds reports.
Time charter equivalent (TCE) rates are remaining constant while bunker costs are falling, meaning those operating in the spot market are able to capitalise on the differential, said Charles Weber.
The tanker market specialist estimated that the average cost of fuel at six key tanker bunkering ports finished at $515 per metric tonne last week, representing a 17 percent decline since June 2014 highs.
However Worldscale rates have not been revised downwards.
The result has been a boost in profitability for tanker operators for whom bunkers are the single biggest voyage expense.
"The rapid descent of bunker prices has aided spot market TCEs by reducing the single-largest voyage cost component," wrote Charles Weber analyst George Los to clients.
Recently brokers Poten and Partners said that eco-MR time charters were achieving an extra $8,000 per day compared to traditional vessels.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| 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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