Two-Tier VLCC Market Emerges With Only Scrubber-Equipped Tonnage Making Profit

by Ship & Bunker News Team
Wednesday February 17, 2021

The rapid rise in bunker prices in recent weeks has delivered a two-tier VLCC freight market, with only those ships with scrubbers making a profit in the spot market, according to price reporting agency S&P Global Platts.

VLCCs using VLSFO have been losing $2,400-3,200 per day for spot voyages on the Persian Gulf to North Asia routes over the past two weeks, Platts reported on Wednesday, citing estimates from brokers. Meanwhile those with scrubbers are earning almost $5,000/day on a net basis, according to the same estimates.

VLSFO prices have risen rapidly in recent weeks, following the rally in crude. VLSFO at Singapore cost $513/mt on Tuesday, according to Ship & Bunker pricing, up from $414/mt at the end of 2020.

But the HSFO price has been more sluggish, and its discount to VLSFO at Singapore -- representing the savings to be made using a scrubber -- widened by $34.50/mt over the same period to $124.50/mt. 

Ship & Bunker News Team
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