Mediterranean bunker fuel prices exceed two-year highs on HSFO backwardation

Bunker fuel prices at various ports in the Mediterranean reached their highest points in over two years last Friday, supported by the tight availability of high sulphur fuel oil in the region. This trend may continue in the short term. More cargoes are expected to be offered for mid-November, which will help rebalance the tight supply side, seeping into the bunker complex for late November, according HSFO sources.

Read more here: Hellenic Shipping News

Generous bunker credit terms could become a thing of the past come 2020

The new regulations of the global sulphur cap, coming into force at 2020, are not only likely to put pressure on the supply of suitable fuel oil to the market but also to the supply of credit. In a recent presentation at the Aracon bunker event, head of credit Paul Millar at physical supplier and bunker trader Bomin Group outlined his views on the subject. The increase in bunker prices post-2020 may force some shipping companies out of the market while credit managers will also come under pressure to raise credit lines to cover increased fuel costs. According to Millar, those companies in the bunker supply chain that are least equipped to handle any inflated financial demands will be most likely to suffer.

Read more here: Ship&Bunker