Bunkerworld: Shipowners Bear Brunt of Voyage Deviation Bunker Costs

“Shipowners, already suffering from weak rates, have been bearing the brunt of additional voyage costs in diversions to avoid pirate infested areas. Increased risks in crossing the Red Sea have prompted most owners to re-route around the Cape of Good Hope, adding some three to five days to the laden leg of a voyage from the Arabian Gulf markets west of the Suez Canal, according to Poten & Partners. ‘As a general rule, owners and charterers split the cost of deviation down the middle,’ the ship and commodity broker wrote in a report on Friday. ‘However, in a weak market, bunkers tend to account for a higher percentage of overall voyage costs, and the price of additional bunkers burned has more impact on owners’ overall earnings.'”