World News
Suez Avoidance to Add 40% to Singapore-Rotterdam Bunker and EUA Cost
Avoiding the Suez Canal and taking the longer route around Africa could add as much as 40% to the bunker and EU-ETS compliance costs of a typical voyage from Singapore to Rotterdam, according to brokerage NSI.
A host of leading shipping companies have announced they will be refraining from using Suez until further notice because of attacks in the Red Sea.
The decision is likely to add significantly to global bunker demand if the current situation persists for more than a few days.
Brokerage NSI, using data from its partner company Stormgeo, has estimated the additional costs for a Panamax boxship travelling from Singapore to Rotterdam from next year, once the EU-ETS system starts to affect shipping.
The company estimates a total cost for bunkers and EU allowances at $361,080 if the vessel uses the Suez Canal, or $505,320 if it travels around the Cape of Good Hope, business development executive Paul Hardy said in a note to customers on Tuesday.
The increase in costs for the longer route is 39.8%, as well as having a sailing time 12 days longer.
"With many vessels diverting we are expecting tightness in product in some markets and delays in supply," Hardy said.
"Please contact us ASAP if you have already started a re-routed voyage to secure avails."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 553.50 | 2.50 | 673.00 | 1.00 |
| Rotterdam | 514.50 | 1.00 | 651.00 | 1.50 |
| Houston | 545.00 | 4.50 | 671.00 | 1.00 |
| Fujairah | 543.00 | 0.50 | 747.00 | 0.00 |
| Global 20 Ports Average | 574.00 | 0.50 | 748.00 | 8.00 |
| Global 4 Ports Average | 539.00 | 1.50 | 685.50 | 0.00 |
| Global Average Bunker Price | 626.50 | 2.00 | 800.50 | 0.50 |
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