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BIMCO Warns of Slow Recovery for Bunker Prices
Shipping industry body BIMCO predicts the recovery of bunker prices following the COVID-19 pandemic is unlikely to be as rapid as their collapse from early March.
In a research note published on its website Thursday, the industry body cited the recovery after the 2008 crisis as evidence that prices may not shoot up again rapidly.
"In 2008, the MGO LS price peaked at $1,360/mt and before starting a prolonged descent, bottoming out at $354/mt after 174 days, a 74% collapse from the peak," BIMCO said.
"While it took over two years to settle at a new peak at $1,075/mt on 11 April 2011, the prices never recovered to previous high levels.
"Past crises and price shocks serve as a reminder that the recovery is nowhere as rapid as the collapse, and although the nature of the current crisis is different from the previous ones, a price recovery is not likely to follow a sharp v-shaped curve."
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 |
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