World News
Green Methanol May Add More than $1,000/FEU to Container Freight Rate: Report
Shifting container ships to using green methanol as a bunker fuel may add more than $1,000/FEU to some container freight rates, according to new research.
Drewry Shipping Consultants has conducted research looking into the cost of alternative fuels, concluding that a switch to synthetic green methanol would add about $1,047 to the cost of transporting a 40ft container from Asia to Europe in 2026, compared with transporting the same box today using VLSFO.
The 2026 costs include the upcoming regulatory cost of shipping entering Europe's emissions trading system, Philip Damas, the consultancy's managing director, said in a LinkedIn post.
The cost increases compared with a 2023 VLSFO-fuelled shipment are as follows, according to the post:
- 2026 VLSFO: +35%
- Grey methanol 2026: +86%
- Grey methanol with green gas certificates 2026: +267%
- Green e-methanol 2026: +343%
"The question is: can the industry voluntarily adopt green fuels, given the huge cost premium which is now becoming clearer?" Damas said in the post.
"Because the cost differential is so big, governments and policy makers will have to adopt stronger or even compulsory rules to force the change if they want to achieve green shipping."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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