World News
Bunker Prices Set to Rise in 2013
McQuilling Services LLC predicts bunker prices will rise to an average of $690 per metric tonne (pmt) in 2013, compared with $672 pmt last year, and hit $760 pmt by 2017, Bloomberg reports.
Fuel makes up 70 percent of tankers' transportation cost, up from an average of 24 percent between 1988 and 2007, according to Norwegian bank DNB ASA (DNB), and McQuiling said bunker prices have more than quadrupled in the past decade.
"Bunker prices will rise slowly over the next three years," McQuilling said.
The firm said reduced exports from Iran and Russia will keep supply low.
In response to higher bunker prices, many ships have adopted slow steaming, and DNB said each 10 percent reduction in speed drops fuel requirements by about 30 percent.
A poll last year found that ship owners see slow steaming becoming universal, although it is possible that charters may sue over the reduced speeds.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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