IBIA CONVENTION: Bunker One USA Sees 30-40% Increase in Barge Renewal Costs

by Ship & Bunker News Team
Wednesday November 23, 2022

Bunker suppliers that charter their delivery vessels are seeing cost increases of as much as 40% this year, according to Bunker One USA.

Georgia Kounalakis, managing director of Bunker One USA, mentioned the rising costs in a panel session at the IBIA Annual Convention 2022 in Houston last week.

"It's a key point on the physical supply side, you're talking about renewal rates somewhere in the arena of 30-40%," she said.

"So within a 12-month period, with the same asset, you need to operate it with a 30-40% higher operating expense.

"That's got to go somewhere."

The bunker industry's margins have risen sharply this year along with the surge in global energy markets since Russia's invasion of Ukraine. But higher operating expenses may be harder to absorb next year with expectations of declining demand in the face of a weakening global economy.