World News
Bunker One: Cooperation is Key for Post 2020 Bunker Market
Cooperation will become increasingly important in the post 2020 bunker market, according to Peter Zachariassen, Global Director Physical of Bunker Holding's Bunker One.
"2020 is a big challenge for everyone and a key message Bunker One has is that it is important we all work together," Zachariassen told Ship & Bunker.
The global sulfur cap lowers to 0.50% from January 1, 2020, and however operators choose to comply with the new rules it is expected to make marine fuel logistics considerably more complicated.
For example, those choosing to take the path of least resistance and burn compliant distillates will have to deal with significantly higher bunker costs, a price hike likely to be upwards of at least 60% compared to the fuel oil bunkers they buy today; those choosing to install scrubbers will have the dual challenges of working with new technology along with a likely rationalization of the HSFO supply chain; and those buying products from the expected new range of compliant HFO blends will have to factor in considerations and risks typical of using any new fuel product, particularly in terms of quality, performance, and onboard handling characteristics.
"We don't take oil out of the ground and we are not the end user. We are just a provider, so we could just lean back and wait and see what happens. But that's not what we want to do, we want to try to seek the opportunities that come with the challenge. So we are spending a lot of time speaking to the market, talking to clients and suppliers, to see how we can best work together," says Zachariassen.
"The challenges 2020 will present vary depending on where and how companies operate, and I also expect some big changes ahead in the industry. Bunker One is about giving buyers a single worldwide offering with a consistent high level of service and expertise, delivering quality solutions for however they choose to comply with IMO2020."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 25Government investigating after test results altered 'to make the fuel consumption data look better'. -
Apr 26The company is looking for candidates with bunker trading professional certifications and at least six years of experience in a similar role.