WILL CARRIERS LOWER THEIR PRICES WHILE FUEL EXPENSES DECLINE?
WILL CARRIERS LOWER THEIR PRICES WHILE FUEL EXPENSES DECLINE?
Bunker expense is one of the key factors in operating vessels in sea transportation. It has been adjusted frequently in the year to keep freight rates reasonable. Now there is good news that freight rates will be declined in the next few months.
The primary fuels have declined in the last few months in the global market. In Rotterdam last week, the IFO380 heavy fuel oil (HFO) was at USD 454 per ton (down from USD 642 in the same period in 2022). The Very Low Sulfure fuel oil (VLSFO) was below USE 545 per ton (dropped from USD 963 last year). The same situation was seen in Singapore, which is a leading fuel hub for vessels via Asia, with 35% lower in the current quarter.
With this situation, we, Voltrans Logistics, expect carriers to consider lowering freight rates in the next few months, at least for their lower operating cost, to be more competitive in customer offers. We are still determining how long it will take, but getting the cargo in the declining trend of low volume is a good action.
By Thomas
Voltrans Logistics – Your Ware Our Care