China Bunker Price Undercut by Russian Competitors
Bunker fuel sales at China's Shenzhen port have dropped by around 20% since the beginning of this year as more ships are calling at the Russian Far Eastern ports to buy bunker fuel with prices there $100-150/mt lower than in Shenzhen, according to trade and industry sources cited by Platts.
Major shipping companies like Maersk, Yang Ming, Hanjin Shipping (117930.KS), Hyundai Merchant Marine have been bunkering at the Russian ports which has cut Brightoil's monthly bunker fuel sales volume at Shenzhen by at least 30,000 mt on average.
Container vessels heading for the US West Coast typically don't bunker at Russian ports as it is not in their route. But due to the lower price at the Russian ports, the ships have been veering off their typical routes and slow-steaming for one or two days to reach the ports and buy bunker fuel there, sources informed Platts.