World News
K Line: Bunker Prices Provided a Buffer from a Tough Market in 2015
Eizo Murakami, President and CEO of Kawasaki Kisen Kaisha, Ltd. (K Line) in a written New Year address said that bunker prices provided a buffer from a tough market in 2015, and noted that he expects challenging conditions for the shipping industry to continue in 2016.
"During the first half of this fiscal year, we benefited from falling fuel oil prices and a continually weakening yen," said Murakami.
"At the same time, however we were exposed to tough market conditions, particularly in our Containership and Dry Bulk businesses, as the cargo movement fell below expectations while supply pressure on shipping capacity was intensified."
Murakami notes that amid tough market conditions in 2015, many of K Line's business were still able to report a steady performance throughout the year, and the company's overall earnings exceeded initial forecasts.
Offering an outlook for the overall market, K Line's CEO said, "we anticipate that some more time will be required before we see full-scale market recovery."
In the face of a persistent challenging market, Murakami explains that K Line's medium-term management plan, which was implemented last April of last year, will help to secure the company's financial stability and strengthen growth potential amid expanding and diversifying global logistics demand.
"Over the course of 2016, we will continue to execute our medium-term management plan and other important business plans and activities," said Murakami.
"Let us move forward steadily, unwaveringly, and with full attention to our goals."
In March, Ship & Bunker reported that K Line had announced its environmental goals for 2050, which include cutting carbon dioxide (CO2) emissions per freight-tonne mile in half compared to 2011 levels.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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