Low Bunker Prices Push Up Tanker Worldscale Rates for 2016

by Ship & Bunker News Team
Monday January 4, 2016

Tanker Worldscale rates are rising following the Worldscale Association's (Worldscale's) annual recalculation, due to the fact that flat rates for 2016 have dropped considerably from 2015, largely due to bunker prices, Platts reports.

"The Worldscale rates are changing mostly because of the cost of bunker fuel," a Houston-based shipbroker was quoted as saying.

"Every flat rate I have checked is lower than the 2015 rate because bunkers are so cheap."

2016 flat rates are said to have dropped by 20-25 percent, according to market sources, with the price of key bunker grade IFO380 behind the calculation said to have dropped 40.2 percent compared to the previous year as on September 30, 2015 - the end of the current calculation window.

There will, however, be a transition period for the new rates.

"It is not like a flip of a switch," a broker said.

"The markets ease into it. The 2015 flat rates are used until the end of December and possibly into early January on a case-by-case basis."

In March, it was reported that shipowners had not reacted warmly to an announcement by the Worldscale for plans to review Emissions Control Area (ECA) fixed rate differentials for 2015.

Ship & Bunker News Team
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