World News
ICS Warns Over Rising Bunker Costs
The International Chamber of Shipping (ICS) has warned that the rising cost of distillate fuel could have a dramatic impact on world trade, as well as a negative environmental effect, Seatrade Global reports.
Speaking on behalf of ICS at a meeting of OECD Transport ministers in Leipzig, Germany last week, Stena AB CEO, Carl-Johan Hagman said protection of the environment is of great importance, but legislation designed to protect the environment that leads to high bunker prices could force cargo back onto roads or to other less carbon-efficient modes of transport.
"Distillate fuels currently cost around fifty per cent more than residual fuel and the difference between the two fuels is expected to increase as the use of distillate becomes mandatory," said Hagman
"Without significant extra production of distillate fuels, how should ship operators manage these extra fuel costs?"
Hagman said that there therefore has to be balance between "green measures" and their economic implications.
"In the current economic climate the shipping industry has to work in close contact with shipping's global regulators, especially the IMO, and make them fully aware of the implications of their actions," he said.
"If governments and regulators are serious about the concept of sustainable shipping, then we must give serious consideration to these cost-benefit questions."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 509.00 | 4.50 | 623.00 | 3.00 |
| Rotterdam | 463.00 | 7.00 | 623.50 | 2.00 |
| Houston | 471.50 | 4.50 | 627.50 | 3.50 |
| Fujairah | 501.00 | 4.50 | 714.00 | 1.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 714.50 | 2.50 |
| Global 4 Ports Average | 486.00 | 3.00 | 647.00 | 2.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 753.00 | 2.00 |
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