- Bunker fuel costs are set to increase in New Orleans as supplier Stone Oil implements a new flat rate.
- Rising operational expenses have necessitated the price hike, which is expected to impact shipping costs in the region.
- While the increase may encourage some vessels to seek alternative bunkering locations, the limited availability of nearby options is likely to mitigate the impact on overall port activity.
Bunker fuel prices in New Orleans are set to increase as of August 15th. John W. Stone Oil Distributor, a major supplier in the region, has announced a new flat rate structure for bunker deliveries.
Increased Costs Drive Rate Hike
The decision to raise rates is attributed to escalating costs in various areas, including insurance, wages, equipment, and regulatory compliance. Stone Oil emphasized the challenges posed by these rising expenses in justifying the rate adjustment.
Impact on Shipping Industry
The new flat rate, which will be applied to all bunker deliveries, is expected to increase operational costs for vessels calling at the Port of New Orleans. While the impact on overall shipping activity is anticipated to be limited due to the lack of nearby alternatives, the rate hike could potentially encourage some vessels to seek bunkering options at other US ports.
Stone Oil’s decision to maintain its own barge fleet, differentiating it from competitors reliant on third-party barge services, was highlighted as a factor contributing to the company’s ability to absorb some of the increased costs before passing them on to customers.
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Source: Engine Online
