Energy prices have\ngone through the roof in 2022. Pump prices for petrol and diesel have never\nbeen so high. For shipping companies, who use huge quantities of fuel and purchase\nit by the tonne, the bills are becoming eye-wateringly expensive. The cost\nincrease is even threatening economic stability and the continued operation of\nservices.<\/s><\/p>\n\n\n\n
Bunker\nprices are cyclical and subject to multiple factors. Although OPEC has always\npulled the strings regarding oil prices up until now, new parameters are today\nblurring the lines, and will continue to do so for some time. After an\nunprecedented fall during the Covid crisis in 2020, prices of very low-sulphur\nfuel oil (VLSFO) and marine gas oil (MGO) began skyrocketing in 2021,\nmaintaining an upward curve to establish new records. Tensions in the energy\nmarket were cranked up even further with the outbreak of the war between Russia\nand Ukraine. \u201cThe impact of the sudden loss of Russian supplies has\nexacerbated the price rise and lack of availability in an already\nunder-supplied market,\u201d<\/em> says Neil Wiggins, bunker specialist at Marfret.<\/p>\n\n\n\n Bunkering \u2013 Top of the costs table<\/strong><\/p>\n\n\n\n On 8th<\/sup> of\nMarch last, the barrel of crude was at $129. \u201cThe tonne of MGO was over the\n$1300 dollar mark. Low-sulphur fuel was at $1000 per tonne. The cost of bunker\nfuel reached such a level that it became the largest cost item for Marfret,\novertaking chartering and social contributions,\u201d<\/em> highlights marine superintendent\nCharles Gauthier. This trend is likely to increase with the recent unavailability\nof Russian VLSFO. The bunker adjustment\nfactor (BAF) charged to forwarding agents and shippers has helped to redress\nthe balance by smoothing out or even cancelling out the variations. The cost\nincreases vary by line, depending on fuel consumption and distances covered. \u201cThese\nhigher prices are here to stay and will have an impact on freight rates,\nespecially to French overseas territories,\u201d<\/em> warns Marfret managing director\nGuillaume Vidil. <\/p>\n\n\n\n Volatility\nand uncertain availability<\/strong><\/p>\n\n\n\n Price volatility has\na direct impact on a line\u2019s financial equilibrium. \u201cFor example, we asked\nfor a gas-oil price a few weeks back. In the morning, we were quoted US$1300 a\ntonne, but this had fallen to under $1100 a tonne just a few hours later (same\nsupplier, same port, same delivery date) on the announcement of a possible\nceasefire in Ukraine. These types of fluctuation in an uncertain market are\nbecoming a daily occurrence. The impact on the cost per TEU for freight carried\non our ships can be huge, both positive and negative,\u201d<\/em> explains Wiggins. This\nprice volatility also affects fuel availability, with suppliers no longer\ntaking advance orders. The market nervousness is undermining line operations,\nsince bunkering is carried out during commercial operations. Currently,\nfuelling orders are being placed at extremely short notice, a few days before\nport call, with potential delays if the bunkering does not take place at the\nsame time as offloading\/loading operations. <\/p>\n\n\n\n While French hauliers have been granted a \u20ac400M aid package to offset fuel\ncost increases, nothing has been planned for shipping companies\u2026 <\/p>\n","protected":false},"excerpt":{"rendered":" Energy prices have gone through the roof in 2022. Pump prices for petrol and diesel have never been so high. For shipping companies, who use huge quantities of fuel and purchase it by the tonne, the bills are becoming eye-wateringly expensive. The cost increase is even threatening economic stability and the continued operation of services. […]<\/p>\n","protected":false},"author":31,"featured_media":5733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[258],"tags":[],"class_list":["post-6006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-nl-en"],"acf":[],"yoast_head":"\n <\/s><\/s><\/p>\n\n\n\n