Despite Price Drop, Bunker Costs Still Hamper Shipping
The cost of marine fuel continues to be a major headache for global shipping companies.
Bunker fuel costs account for approximately 70 per cent of the total voyage expenditure for a vessel and ship operators prefer purchasing bunker fuel from ports where the cost is lower.
Some operators prefer purchasing a major portion of the total fuel requirement for the voyage from a single port which offers bunker fuel at economical prices.
However, this is not an industry-wide scenario as other operators may spread the total fuel purchase over numerous ports.
Fuel utilised by shipping companies for fuelling their marine fleet is commonly referred to as bunker fuel. Currently, fuel oil is the most widely used bunker fuel. However, apart from fuel oil, other middle distillate fuels are also utilized as bunker fuels.
The stringent sulphur emission standards, especially in Emission Control Areas (ECA), have gradually led shipping companies to adopt clean fuel grades.
