World News
Fyffes Reports Six Percent Reduction in Bunker Costs in 2014
Ireland-based fruit and fresh produce company Fyffes plc saw a six percent reduction in bunker fuel costs last year, according to the company's 2014 full-year report.
The company said that the extra savings on bunkers when shipping produce have helped it offset inflation in the cost of fruit, with shipping and fuel one of the key drivers of performance in the company's tropical produce operations.
Lower shipping and other import costs also helped Fyffes to a 20.5 percent increase in its earnings before interest, tax (EBIT) of €40.1 million ($44.8 million).
With crude prices weak and the cost of bunkers having also dropped, other shipping companies have reported that profits are being pushed up.
However, it was reported late last year that shipping lines aren't likely to see long term benefits from the bunker price drop.
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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