The roughly doubling of bunker fuel prices since the war in the Middle East began in late February has prompted ocean carriers to implement emergency fuel surcharges of hundreds of dollars per container.
Speaking at the Georgia International Trade Conference at Sea Island, Georgia, container-line executives acknowledged that global bunker supplies are tightening amid the war-driven energy shock, causing congestion at some fuel hubs and forcing some ships to bunker at alternative ports. But they stopped short of saying there were outright shortages impacting services.
Tighter supply requires more pre-booking and coordination. Fabio Santucci, President of MSC's U.S. office, said: "There haven't been shortages per se yet." Stuart Sandlin, President of Hapag-Lloyd North America, concurred — adding that rising fuel costs have not yet impacted tonnage deployment, although some vessels have had to bunker at alternative ports.
Other notable themes from the conference: the U.S. maritime regulator's chairman warned that the agency could act against ocean carriers or foreign-flag ships should the IMO's Marine Environment Protection Committee take further steps under its shipping-emissions plan. Oil-and-gas project-cargo drivers including Baker Hughes, Halliburton and SLB said infrastructure repair in the Middle East and supply diversification outside the region should produce a heavy book of post-war work.
Key Takeaways:
1. Bunker fuel prices have roughly doubled since late February.
2. Container carriers are applying emergency fuel surcharges of hundreds of dollars per container.
3. MSC US president Santucci: 'No outright shortages yet,' but pre-booking discipline is required.
4. Hapag-Lloyd NA president Sandlin: Some vessels have had to bunker at alternative ports.
5. Baker Hughes, Halliburton, SLB expect a heavy book of post-war infrastructure-repair work.
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