World News
Frontline Still Paying in $300s/mt for Bunker Fuel
Monday November 29, 2021
Shipping company Frontline is paying as little as half the global average price for bunker fuel because of a forward price agreement signed last year.
The company has a deal requiring it to buy 5,000 mt/month between October 2020 and December 2021 at $325-365/mt, it said in quarterly results on Monday. That compares with the current global average VLSFO price of $618/mt, according to Ship & Bunker's G20 Index of prices at 20 leading bunkering destinations.
The G20 Index for VLSFO has been above the $325-365/mt range since November 2020 -- for almost all of the timespan of Frontline's agreement.
The company has a further agreement obliging it to buy 5,000 mt/month between January and December 2021 at $232/mt, it said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 567.50 | 3.50 | 700.00 | 14.50 |
| Rotterdam | 512.50 | 4.00 | 695.00 | 17.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 562.50 | 2.50 | 755.00 | 0.00 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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