World News
Bunker Prices Add Pressure to Rock Bottom Tanker Earnings
Rising bunker prices are adding to the woes faced by the tanker industry, with crude oil tanker earnings on Monday at a record low on the Middle East route according to a report by Reuters.
The previous low was on September 30, 2011.
"The VLCC market has gone from bad to worse ... with several factors behind the downfall such as rising bunker prices, plenty of newbuildings and dry docked ships and of course the slow trickle of cargoes entering the market," broker Braemar Seascope told the news agency.
"Reduced fixture volumes so far in July have kept VLCC rates under pressure in the Middle East Gulf, pushing earnings into negative territory on key eastbound routes," broker SSY said.
Global bunker prices have eased recently, with the average price of key grade IFO380 in global price indicator ports Singapore, Rotterdam, Fujairah, and Houston dropping $90 in May, and $40 in June.
Prices are now on an upward trend which started late June, with Ship & Bunker data showing June's drop has now been corrected.
So far in July, IFO380 in the four ports has risen on average just over $44.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 489.00 | 2.00 | 583.50 | 9.00 |
| Rotterdam | 439.00 | 6.00 | 587.50 | 6.00 |
| Houston | 437.50 | 6.00 | 597.00 | 4.50 |
| Fujairah | 478.00 | 9.00 | 703.50 | 7.50 |
| Global 20 Ports Average | 513.50 | 4.00 | 694.50 | 2.50 |
| Global 4 Ports Average | 461.00 | 5.50 | 618.00 | 6.50 |
| Global Average Bunker Price | 559.50 | 0.00 | 739.50 | 3.50 |
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