World News
Low Bunker Prices Predicted to Cause Drop in Worldscale Tanker Rates
With bunker prices falling, Worldscale (WS) tanker flat rates on benchmark routes will decline by an average of 4 percent in 2014, industry news site TankerOperator reports based on analysis by marine business consultancy McQuilling Services (McQuilling).
McQuilling's calculations assume that the base bunker price will fall 8 percent in 2014 after rising 9 percent this year, going from $686 per tonne this year to $632 per tonne in 2014 for HSFO 380 cst.
So far this year, the spot rate on the benchmark TD3 trade from Saudi Arabia to Japan has averaged WS38.9, with a daily time charter equivalent (TCE) of $12,225.
McQuilling said owners will have to push up spot rates to break even.
Global forecasts of increased economic activity and greater oil demand may support higher spot rates.
The International Energy Agency (IEA) said last week that global oil demand will rise by 1.2 million barrels per day (mbpd) in both 2013 and 2014, an increase over its previous projection.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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