World News
High Bunker Prices Cited as Chiquita Losses Widen in Q3
American producer and distributor of bananas and other produce, Chiquita Brands International Inc. (Chiquita) said high bunker prices were a factor in a net loss of $67 million from net sales of $714 million in its third quarter of 2012, compared to a $29 million loss on net sales of $723 million for Q3 2011.
The company said it has been reconfiguring its European shipping system over the past year, and it expects the changes to provide more than $12 million of annualised cost savings after transition costs.
"Chiquita will continue to face difficult year over year comparisons in the fourth quarter because of lower euro exchange rates and higher fuel costs, net of hedging," the company said.
"We expect banana volume in North America and Europe to end the year relatively flat, and salad volumes to be down 5% as compared to 2011 levels for the full year. "
The company announced a restructuring plan in August to focus on its core businesses, which it said would result in at least $60 million of annual savings.
Produce industry publication The Packer reported at the time that the company's plan included replacing then-CEO Fernando Aguirre, who had led the company into an expansion of research and development and a big investment in diversification.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 493.50 | 8.50 | 606.00 | 11.00 |
| Rotterdam | 450.00 | 5.00 | 599.50 | 20.00 |
| Houston | 458.00 | 9.00 | 618.00 | 7.00 |
| Fujairah | 483.00 | 12.00 | 703.00 | 9.50 |
| Global 20 Ports Average | 521.00 | 3.50 | 705.50 | 5.00 |
| Global 4 Ports Average | 471.00 | 8.50 | 631.50 | 12.00 |
| Global Average Bunker Price | 564.00 | 6.50 | 741.50 | 6.00 |
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