In the first quarter of 2020, everyone in shipping expected the sulfur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 to take the centre stage in the shipping industry. But the spotlights have turned to the coronavirus and the OPEC oil price war. Bunker prices dropped from 690 (VLSFO) to 220 US$/MT in April*.
In the last months, however, we see the opposite trend. Markets are anticipating a return to normal, with the arrival of vaccines and the positive outlooks fuelled by the economic stimulus by governments.
As indicated in the graph below, since early May bunker prices are rising to 426 US$/MT* last week as the market is picking up steam. We believe this will continue as economies are coming out of lockdown towards mid-2021.
Investing in fuel efficiency makes perfect business sense. As an example, a bulk carrier with 20MT daily consumption and 220 sailing days per year has an annual fuel bill of 1,8 Million dollars. Assuming a monthly 500 EUR spend on running a performance solution, you would only need 0,0036% savings to compensate for the costs.
On average, we see a 3% improvement in efficiency after the implementation of our solution. These are the results of small changes, such as sailing at a more optimal speed and early detection of hull fouling and resulting cleanings.
And as 3% saving will result in over 49,000 US$ annual net saving per vessel, it is easy to understand the logic behind using an advanced monitoring solution.
Get in touch with us for a pilot where we demonstrate your saving potential based on real-time monitoring of your owned or chartered vessels. Or first discuss your personal business case with us in a free consultation meeting.
Have a good start of the New Year and wishing you a safe and fuel-efficient 2021!