Lloyd’s List: The Price of Low Sulphur

“The recent increase in marine fuel prices is adding to the financial pressure on ship operators on top of the poor revenues from spot freight rates in many sectors. Container lines in particular are suffering as a result of these trends, but tanker and bulk carrier operators are likewise feeling the impact of higher fuel costs . . . . US consultancy Poten & Partners said recently that it is difficult to assess the impact on bunker prices, but the differential in the US is likely to be similar to that in Europe. Poten suggests that increasing the ECA areas will boost demand for low sulphur marine fuel, which could in itself tend to force the price higher. Bunker suppliers will respond by stepping up availability of low sulphur fuel to meet the demand but there are concerns among shipowners whether there will be sufficient fuel to meet all their needs. That concern is even greater with regard to 2015 when they will have to start burning distillate fuel.”