Singapore: Multi-fuel Market to Push up Barging Costs

Wednesday February 13, 2019

The cost of barging in Singapore is likely to edge up as the industry moves closer to the introduction of the 0.5% global sulfur cap which starts from next year.

Operators will increasingly be dealing with a greater range of fuels which will mean tighter turnaround schedules, according to price-reporting agency S&P Platts Global.

Barging costs currently sit between $4.50-$6/mt but these could edge up gradually in the second half of the year moving towards $10/mt going into 2020, the report said citing market sources.

Barge turnarounds usually average around nine a month but these could drop back to six or seven on the back of operating across different fuels, sources were cited as saying.  Costs would also be affected by demand for different grades.

Although high sulfur 380 CST bunker fuel is by far the biggest seller, the latest monthly sales figures show a decline in 380 CST sales month-on-month.