World News
Low Bunker Prices Mean ECO Ships Have "Marginal" Impact in Current Dry Bulk Market
A new survey by Platts has revealed that fuel-efficient "eco" dry bulk vessels may have less of an impact on freight rates than previously thought.
"Eco-ships have been considered the darlings of the dry bulk market for a while now. However, as survey results showed, not everyone shared the opinion that eco-vessels have any noteworthy influence on the general state of affairs," stated Platts.
"Benefits accruing from eco-efficient vessels on freight rates seem to be marginal with 43 percent of respondents saying these ships have no significant impact at the moment."
The results are said to be attributable to lower bunker prices, limiting the fuel savings that modern tonnage can provide over older, less fuel efficient vessels.
Platts notes that 54 percent of respondents - of more than 100 dry bulk market participants polled by the survey - felt that lower bunker prices are beneficial to both charterers and shipowners.
However the so-called eco-tonnage may have a bigger role to play in the future.
In February, Drewry Shipping Consultants Ltd. (Drewry) said that it expected the dry bulk market to experience a recovery later this year, partly as a result of new, fuel-efficient ships.
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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