Bunkerworld: Tanker Firms Margin Squeezed by Rising Bunker Prices

“The spike in bunker prices has ‘drastically’ eroded the already slim profits experienced by tanker owners and operators, according to broker and commercial consulting company Poten & Partners Inc. In a report on Friday, the broker said that the ‘dramatic rise’ in bunker costs is the ‘most compelling’ fundamental reason for weakness in the performance of tanker companies. ‘Wiith margins being squeezed by rising bunker prices, it stands to reason tanker stocks will continue to face downside pressure until prices ease or tanker rates rise accordingly to truly compensate for the higher price,’ said Poten & Partners.”