High bunker price volatility can erase TC earnings

High bunker price volatility can erase TC earnings

Earlier, we wrote how ship owners and operators can lose millions by not considering all their bunker options. Here we show that even if all options are considered, high price volatility between bunker ports means the choice needs to be continuously scrutinised to avoid large P&L losses.

Bunker prices fluctuate with the oil markets but even after stripping out the effects of crude, prices between ports are still extremely volatile. As a result, the cheapest bunker port on the same voyage can change every 3 days, meaning shipowners can suffer big P&L losses by not constantly re-evaluating all options right until they have to fix.

“Put simply, in the time […] Read more

Bunker Price Secrets (Part One)

Bunker Price Secrets (Part One)

“Bunkering is without a doubt the most opaque market there is. At least when a fixture is done in shipping, the detail gets reported out there pretty quickly — sometimes before even the charterer and the owner know. But in this market, no one knows the ‘fixture’ of bunkers. The only way you even know two data points in the same port is if you have two ships loading in that particular port with two different suppliers”.

– Nicolas Busch, founder and CEO of Navig8/Integr8

This is the first of a 3-part series where we explore techniques and concepts when establishing the […] Read more