Bunker rate up 20% in 1 month, freight rates showing mixed trend
In Singapore and Fujairah, price zoomed to $904/mt and $918/mt, respectively.
The #RussiaUkraineConflict is severely impacting container carriers on the fuel front- the average cost of VLFSO has increased to $885/mt from $740/mt on February 3, 2022 - an increase of 20 percent - according to data from Ship & Bunker.
In Singapore and Fujairah, the price zoomed above $900/mt to $904/mt and $918/mt, respectively.
Container shipping expert Lars Jensen had this to say about the fuel price increase: "The container carriers use some 60 million tons of fuel per year. This means the total fuel cost has increased by $37 million per day. Looking at the global volumes, this equals $80/TEU - more for longer trades, less for shorter trades. Hence substantial Bunker Adjustment Factor (BAF) increases are coming."
"For logistics, the most widespread impact across all modes will likely be rising fuel costs. As oil prices soar, we can expect carriers to pass increased costs on to shippers," Freightos said in its weekly update.
The Drewry composite World Container Index (WCI) declined over 2 percent to $9,279.46/40ft container this week but remains 81 percent higher than a year ago.
Freight rates on the Shanghai–Rotterdam route fell 5 percent to $12,968/40ft box. Spot rates on New York–Rotterdam dropped 2 percent to $1,180/FEU. Rates on Shanghai–Los Angeles and Rotterdam–Shanghai hovered around previous week's level.
Drewry expects rates to remain stable in the coming week.
Asia-US West Coast prices increased 4 percent to $16,155/FEU (on March 3) which was 204 percent higher than the same time last year. Asia-US East Coast prices (March 3) were up 2 percent to $18,250/FEU, up 218 percent from last year, Freightos said.
As many as 59 container ships are backed up across the ports of Los Angeles/Long Beach as on March 3, 2022, according to data from Captain J. Kipling (Kip) Louttit, Executive Director, Marine Exchange of Southern California & Vessel Traffic Service Los Angeles and Long Beach San Pedro, CA.
"In response to multiple queries, no vessels of any type are scheduled to arrive in LA or LB that we know of in the next month whose last port of call was Russia, and/or are Russian flag," the statement said.
"The only vessel to arrive in the past three months from Russia was a Roll-on/Roll-off ship under the Marshall Islands flag which arrived from Vladivostok on February 10. Ro-Ro ships carry large vehicles, buses, railroad cars, tractor trailers, trucks, cars, etc. that go on and off the ship on their own wheels. Our schedule is firm out to three days per Harbour Vessel Traffic Update and has gaps after that but you know what we know and we'll keep a watch for you."
The 59 container ships in the backup are 50 fewer than the record of 109 on January 9, 2022.