{"id":59824,"date":"2021-10-11T11:16:14","date_gmt":"2021-10-11T16:16:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59824"},"modified":"2021-10-11T11:16:14","modified_gmt":"2021-10-11T16:16:14","slug":"yet-another-worry-price-of-ship-fuel-is-now-highest-since-2014","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59824","title":{"rendered":"Yet another worry: Price of ship fuel is now highest since 2014"},"content":{"rendered":"<header class=\"entry-header-outer\">\n<div class=\"entry-header\">\n<h3 class=\"post-title entry-title\"><a href=\"https:\/\/www.freightwaves.com\/news\/yet-another-worry-price-of-ship-fuel-is-now-highest-since-2014\">Yet another worry: Price of ship fuel is now highest since 2014<\/a><\/h3>\n<p class=\"entry-sub-title\"><strong>Bunker surcharges on the rise for shippers of containerized cargo<\/strong><\/p>\n<\/div>\n<\/header>\n<div class=\"featured-area\">\n<div class=\"featured-area-inner\">\n<figure class=\"single-featured-image\"><img loading=\"lazy\" decoding=\"async\" class=\"attachment-full size-full wp-post-image\" src=\"https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock.jpg\" sizes=\"auto, (max-width: 2214px) 100vw, 2214px\" srcset=\"https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock.jpg 2214w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-600x337.jpg 600w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-1200x673.jpg 1200w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-768x431.jpg 768w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-1536x862.jpg 1536w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-2048x1149.jpg 2048w, https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2021\/10\/IMO_2020_bunkering_1shutterstock-390x220.jpg 390w\" alt=\"shipping fuel\" width=\"2214\" height=\"1242\" \/><figcaption class=\"single-caption-text\">\u00a0Ship refueling (Photo: Shutterstock)<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"entry-content entry clearfix\">\n<div class=\"stream-item stream-item-above-post-content\"><\/div>\n<div class=\"speechkit-container\"><iframe id=\"speechkit-io-iframe\" src=\"https:\/\/spkt.io\/a\/2785299\" height=\"40px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-src=\"https:\/\/spkt.io\/a\/2785299\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>Commodity prices are\u00a0<a href=\"https:\/\/www.freightwaves.com\/news\/power-crisis-deepens-in-asia-and-europe-what-it-means-to-shipping\" target=\"_blank\" rel=\"noreferrer noopener\">surging around the globe<\/a>, so it should come as no surprise: Marine fuel is getting a lot more expensive. That\u2019s bad news for ship operators on the cost side, and, in the container business, yet another headache for cargo shippers.<\/p>\n<p>Marine bunker prices are \u201csoaring,\u201d said Alphatanker on Thursday. \u201cThis has not just impacted 3.5% [high-sulfur fuel oil or HSFO] but also 0.5% VLSFO [very low sulfur fuel oil].<\/p>\n<p>\u201cThere are expectations that crude, and therefore marine fuel, could move higher in the coming weeks as oil markets tighten further,\u201d warned Alphatanker, adding, \u201cThis will undoubtedly clip gains in tanker earnings.\u201d<\/p>\n<p>All ship categories, not just tankers, are taking a cost hit. On Thursday, the S&amp;P Global Platts T4 index estimated that a Capesize (a dry bulk ship with capacity of around 180,000 deadweight tons) burning VLSFO was spending $24,596 per day on fuel.<\/p>\n<p>Ships equipped with exhaust-gas scrubbers are still able to burn cheaper HSFO under IMO 2020,\u00a0<a href=\"https:\/\/www.freightwaves.com\/news\/how-imo-2020-turned-into-the-y2k-of-ocean-shipping\" target=\"_blank\" rel=\"noreferrer noopener\">a regulation that went into force for all commercial ships on Jan. 1, 2020<\/a>. According to the Platts\u2019 T4 Thursday assessment, scrubber-equipped Capes were paying $22,815 per day for fuel.<\/p>\n<h4 id=\"h-why-pricing-is-up-and-where-it-s-going\">Why pricing is up and where it\u2019s going<\/h4>\n<p>\u201cThe main driver for bunker pricing is the price of oil \u2014 that\u2019s the key,\u201d said Martyn Lasek, managing director of Ship &amp; Bunker, a company that provides pricing data. \u201cIf you look at the relationship between Brent and VLSFO, it\u2019s now pretty solid.\u00a0<a href=\"https:\/\/shipandbunker.com\/news\/world\/424637-sb-analysis-latest-brent-vlsfo-relationship-and-bunker-price-outlook-through-2022\" target=\"_blank\" rel=\"noreferrer noopener\">There\u2019s an established price trend<\/a>.\u201d<\/p>\n<p>American Shipper asked Richard Joswick, head of global oil analytics at S&amp;P Global Platts, where the price of crude \u2014 and thus ship fuel \u2014 is going.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Yet another worry: Price of ship fuel is now highest since 2014 Bunker surcharges on the rise for shippers of containerized cargo \u00a0Ship refueling (Photo: Shutterstock) Commodity prices are\u00a0surging around the globe, so it should come as no surprise: Marine fuel is getting a lot more expensive. That\u2019s bad news for ship operators on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[265,322,31553,31945,426,2227,31946,4856],"class_list":["post-59824","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-energy-crisis","tag-food-prices","tag-freight-waves","tag-greg-miller","tag-inflation","tag-prices","tag-ship-fuel","tag-shipping"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59824"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59824\/revisions"}],"predecessor-version":[{"id":59825,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59824\/revisions\/59825"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}