According to Ship & Bunker data, the bunker prices at major ports have doubled in the last nine months.
20 Ports VLSFO Average
Specifically, Ship & Bunker’s Global 20 Ports Average for VLSFO hit a low of $210/mt on April 28, 2020.
On December 30, 2020 the VLSFO average was $422/mt.
Sharp rise in costs
While the current cost is still much lower than the $700/mt+ it was at the start of the year, it nevertheless represents a sharp rise in fuel costs for owners and operators.
MGO
MGO has shown a similar sharp increase in cost, with the G20 index hitting a low for the year of $268.50/mt on April 28 and indicating an average price of $475.50/mt on December 30.
2020 lower bunker cost
Overall, bunker costs have been lower in 2020 than they were in 2019. A dynamic that was certainly not expected prior to the impact of the COVID pandemic.
2021 high bunker costs
With respected analysts including Goldman predict Brent will average $65/bbl in 2021.It suggests 2021 could well see bunker costs jump even higher and mark the return of $600/mt+ bunkers.
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Source: Ship & Bunker
