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Record Rotterdam LSFO bunker premiums seen in Dec on lack of barges
The premium of delivered low sulfur fuel oil barges in Rotterdam over FOB prices this December has reached its highest monthly average since Platts records of the spread began in early 2011.
The premium averaged $15.46/b so far in December. The previous monthly average record was $15.28/mt in April 2012, Platts data showed.
Traders said the extra cost of delivered bunker fuel in the key Northwest European port was due to logistical bottlenecks, rather than any extra strength in demand.
"There's been a lot of logistical issues in ARA and a lack of product of LSFO," said one fuel purchaser. "We've seen a lot fewer offers for our vessels than usual, which has driven up delivered premiums considerably. My personal view is that the trend will revert in the coming week or two."
Some traders said the reduced availability of barges in the region was due to loading by a cargo player.
"It is due to logistical constraints linked to Vitol LSFO cargo [buying]," said one trader late last week. "They are lifting 100,000 mt on barges in Antwerp, so took all the barges away from the market." Vitol declined to comment.
Another trader said: "There are logistical constraints, no barges available. I don't know how long it will stay -- a couple of weeks max."
Source: Platts
The premium averaged $15.46/b so far in December. The previous monthly average record was $15.28/mt in April 2012, Platts data showed.
Traders said the extra cost of delivered bunker fuel in the key Northwest European port was due to logistical bottlenecks, rather than any extra strength in demand.
"There's been a lot of logistical issues in ARA and a lack of product of LSFO," said one fuel purchaser. "We've seen a lot fewer offers for our vessels than usual, which has driven up delivered premiums considerably. My personal view is that the trend will revert in the coming week or two."
Some traders said the reduced availability of barges in the region was due to loading by a cargo player.
"It is due to logistical constraints linked to Vitol LSFO cargo [buying]," said one trader late last week. "They are lifting 100,000 mt on barges in Antwerp, so took all the barges away from the market." Vitol declined to comment.
Another trader said: "There are logistical constraints, no barges available. I don't know how long it will stay -- a couple of weeks max."
Source: Platts
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