Maersk Group Sees 2014 Bunker Bill Fall $598 Million

Maersk Line's average bunker price fell 5.7 percent

Maersk Group saw its 2014 annual bunker bill fall by $598 million, according to figures released in its latest Annual Report for 2014 released on Wednesday.

The group spent $5.3 billion on bunkers in 2014 compared to $5.9 billion in the previous year.

In its accompanying Sustainability Report for 2014, the Group said that efficiency improvements at Maersk Line accounted for $98 million of the overall reduction.

"In 2014, the Maersk Group improved its CO2 efficiency by 5%. This was driven mainly by approximately 8% efficiency improvements in Maersk Line, amounting to a reduction in absolute CO2 emissions of 530,000 tonnes and fuel savings of USD 98 million," it said.

The group's largest consumer of bunkers, Maersk Line, saw the average cost of the fuel fall in 2014 by around 5.7 percent to $562 per metric tonne (pmt).

At the same time, the carrier's bunker consumption per forty-foot equivalent unit (FFE) was reduced by 7.9 percent year-on-year.

"In 2014, the Global Voyage Centre [GVC] contributed towards optimising bunker consumption," said Maersk Group.

Maersk Group says its GVC consists of a team of senior seafarers who monitor the group's ships 24 hours a day and help to ensure ships stick to their voyage plans.

"The close monitoring and onshore-offshore collaboration help in saving on bunker fuel and reducing CO2 emissions."

While reductions in bunker consumption may continue to help the group enhance future profitability, Maersk said that "the decline in the bunker price is assumed to have no significant impact in the long term since it will be reflected in the freight rates."

Last month Nordic bank Nordea predicted that Maersk Group stands to save up to $2 billion per year at current oil prices.