Capesize

13750

May-17
450.00 3.38%

Panamax

8300

May-17
-200.00 -2.35%

Iron Ore

61.5

May-17
-0.50 -0.81%

Sing 380

292.65

Jun-17

Coking Coal

177

May-17
1.00 0.57%

Nola Urea

172

May-17
3.00 1.78%

The Fuel Oil Market



Bunker fuel makes the global shipping industry move and powers seaborne trade.

The global physical market is currently estimated at 400-500m tonnes per annum, with a paper market about seven times that size.

As fuel oil it is tied so directly to crude oil, bunker price risk management has become a crucial issue in recent years.

"IFO380 prices in Singapore and other global hubs rose almost 15% in early 2013, while freight rates headed in the opposite direction."

At a time of lower freight rates and higher oil prices, bunker fuel can easily account for up to 70% of daily ship operating costs. This has led anyone with price exposure to explore strategies on how to better manage the risk associated with the volatility of bunker prices.

Ship-owners, charterers and bunker suppliers are exposed to global fluctuations of crude and bunker prices that have little to do with supply and demand in local markets.

Bunkers Market Indices