Drewry: Shippers More than Carriers Gain From Plunging Oil

by Ship & Bunker News Team
Tuesday December 16, 2014

Although all carriers stand to gain from the collapsing price of oil, it is shippers who are coming out the biggest winners, according to Drewry. 

In an analysis, Drewry said that though carriers stand to save on fuel bills, lower bunker prices also means they will have lower "bunker adjustment factor" surcharges, while the low cost of oil has also undermined their ability to raise slumping freight rates. 

Falling oil prices have also had the side effect of closing the advantage gap of having larger containerships, a move which has previously been said to be the future of the shipping industry. 

"Those with a more pronounced big-ship fleet profile stand to see a lower fuel cost reduction in percentage terms on account of their existing higher per slot fuel efficiency," the company said in the report.

"The bunker cost per round-voyage slot for an 18,000 TEU ship in 2015 will come down by $67 to $123 per TEU, whereas for a 12,000 TEU ship the reduction will be $83 to $153/TEU, a differential of $30 rather than $46 in 2014," Drewry said using the Asian-North European trade as an example. 

As for shippers, ongoing low energy prices are expected to hike consumer and corporate spending, which is expected to bring along with it better ship utilisation. 

It was also estimated earlier that the declining cost of oil could have saved shippers up to $29 billion in fuel costs over the  last year. 

Ship & Bunker News Team
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