World News
69% in Shipping Say Fuel Efficiency is Key to Improvement
A large majority of the shipping industry sees improving fuel efficiency as the most important area to focus assets, according to a new study of transportation sectors by international law firm Norton Rose.
The survey found that 69 percent of shipping respondents chose fuel consumption as the key area for improvement, while 40 percent chose technological improvement, and smaller percentages chose reduced environmental impact, low maintenance cost, or greater capacity.
"It was once the case that the cost of fuel was a small percentage of overall outgoings; now it accounts for a third," Harry Theochari, global head of transport for Norton Rose, told Lloyd's List, discussing all transportation sectors.
"While the rail sector is focused on technological innovations to drive efficiency, fuel is still a huge problem for shipping.
"It is a diminishing resource and therefore there is no real chance of prices dropping."
Only 33 percent of shipping industry respondents said they have plans to make new ship orders, and even fewer have orders currently in the pipeline.
However, Theochari said ship owners have been increasingly interested in new orders in the past month.
"It is surprising to see this degree of confidence but it is very fragile as there has been no huge increase in ambition and desire," he said.
"Some shipowners have seen growth opportunities and have taken bets but there is still overcapacity in most sectors."
Theochari added that new fuel-efficient very large crude carriers (VLCCs) could create a two-tier market with oil majors using the newer "ECO" ships rather than older vessels that are expensive to operate.
"People are ordering fuel-efficient ships and I've been told an eco very large crude carrier could save $6,000 per day," he said.
"Therefore you can see the attraction of having eco-ships rather than older vessels; you only have to do the maths to see what kind of saving you could make."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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