Bunker prices: the trend is down

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Some comfort for container shipping lines battling the headwinds of an unrelenting pressure on freight rates caused by weak demand and overcapacity: fuel prices are still falling. Rotterdam-sourced IFO 380 was down another $4 per tonne in trading today to $237.50 – the lowest level for bunker fuel in six years.

And there is more good news: analysts believe that bunker prices have further to fall and the cost relative to the cost of crude oil is also in decline. The news of reduced costs for their ships will help the bottom line of carriers – as long as they do not fritter it away again in rate discounting.