World News
OOCL Slashes 41% From 1H 2016 Bunker Bill
Orient Overseas (International) Limited (OOIL), the principal of Orient Overseas Container Line (OOCL), announced that the group swung to a loss attributable to equity holders of $56.7 million during the first half of 2016, despite the group's bunker costs decreasing by 41 percent year on year.
The loss compares against a profit of $238.6 million during the same six month period of 2015.
"Although fuel costs have risen considerably since the remarkable lows of the first few months of 2016, they remain far lower than in recent years, and provide some element of cushion against the unsustainably low freight rates that have been seen in some trades," said C C Tung, Chairman of OOIL.
OOCL reports that the average price it paid for bunkers during the first half of 2016 was $186 per tonne, compared to $352 per tonne during the same period of 2015.
"Market conditions in the first six months of 2016 have been difficult for the industry. Weak economic growth in many key economies has constrained consumer demand, and global uncertainty seems to have given rise to some level of slowdown in corporate and government investment," said Tung.
"Consumer demand and investment are the key drivers of demand in our industry, and in this context it is no great surprise that cargo volume growth has been uninspiring."
In July, Ship & Bunker reported that OOCL has extended their greenhouse gas (GHG) reporting to container terminals, specifically Long Beach Container Terminal, LLC in the U.S. and Kaohsiung Container Terminal in Taiwan.
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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