Bunker fuel prices surging with crude, adding additional costs to US shippers

HOUSTON (ICIS)–The cost for shipping liquid chemicals across regions is likely to continue facing pressure as bunker fuel prices are surging, tracking spiking global crude oil prices.

Bunker prices have been rising steadily since the beginning of the year but surged by more than $100/tonne over the weekend as oil prices neared $140/bbl before retreating later in the session.

US benchmark WTI prices ended the day up by $3.72/bbl, while Brent settled up by $5.10/bbl.

From 1 January, bunker prices in Houston and Rotterdam have risen by 60%, while prices in New York are up by 63%.

Singapore bunker fuel prices have risen by almost 59% over the same time period.

The increases are likely to be passed on to customers.

Global shipping major MSC informed customers last week that it will implement a global fuel surcharge for all shipments from Asia to the US, effective 1 April, and a monthly bunker recovery charge for shipping containers along the same route which replaces the previous quarterly bunker recovery charge.