Fuel for the Bunker Surcharge Fire

Drewry Maritime Research
Monday, September 16, 2013
Ocean Carrier BAFs From Asia to WCNA Since Jan 2012. Source: Drewry Maritime Research

The way carriers calculate bunker surcharges is often disputed by shippers, and no more so than now. Drewry Maritime Research explains.


Bunker surcharges should, proportionately, have been reducing faster than fuel prices because of the deployment of more efficient ships, but this does not appear to have happened for most carriers. The issue is highlighted by two recent developments in the container industry. Firstly, the arrival of Maersk’s first 18,000 teu vessels, and secondly, the availability of really cheap fuel in Russian ports again.


As explained in ‘Why size matters’ (http://ciw.drewry.co.uk/features/why-size-matters/#.Ui8TuL5wbiw), 18,000 teu vessels burn approximately 35% less fuel per teu carried on a round voyage basis between Asia and Northern Europe than 13,100 teu vessels ($218/teu versus $333/teu), and 13,100 teu vessels burn 20% less than a 9,000 teu vessels ($333/teu versus $415/teu), assuming constant speeds of 20 knots westbound and 14.6 knots eastbound, and that the bigger vessels will be less full. In turn, 9,000 teu vessels burn approximately 23% less than 6,000 teu vessels ($415/teu versus $542/teu).

The pace of change has been gathering momentum. In 3Q 11, the average size of vessel deployed between Asia and Northern Europe was just 9,158 teu, which increased by 8% in the next twelve months, up to 9,881 teu, and by another 9% in the next twelve months, up to over 10,800 teu. The change in the transpacific was slightly less, being 7% between 3Q 11 and 3Q 12, up to 6,264 teu, but only 1% between 3Q 12 and 3Q 13, up to 6,320 teu.
This means that bunker surcharge levels should have been falling faster than fuel prices since 3Q 12, which is not immediately apparent from Figures below – except for Maersk Line, due to the dramatic revision of its Standard Bunker Adjustment Factor (SBF) formula on 4 June, 2013, which explains why overall averages have subsequently dropped.


For more information, Email: simonr@drewry.co.uk

 

  • Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research

    Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research

  • Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research

    Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research

  • Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research

    Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research

  • Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research
  • Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research
  • Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research
Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

Viking Orders 2 Liebherr Cranes

An LR 1300 with super lift equipment and an LR 1160 crawler crane will strengthen the fleet of Viking Cranes. The Tallinn-based company with branch offices

Fuels & Lubes

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

Red Tape, Industrial Relations Could Stifle LNG Potential

Australia could develop the world’s most technologically advanced LNG industry, according to a report by Accenture. But if industry is to reach its potential

Oil Leak Contained at MV Miner Site

On-site workers acted quickly to contain an oil leak during the final stages of removing the wreck of the MV Miner off Scaterie Island, says the government of Canada’s Nova Scotia province.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1620 sec (6 req/sec)