30-05-2018

Containers update: Outlook for June 2018

If we take two points on the North Asia to East Coast North America route, September 20 and November 3, 2017 Platts assessed the spot market, PCR5 at $2,000/FEU on both dates.

On the surface, it might appear the carriers are earning the same amount for the voyage. In fact the carriers were probably losing around $150,000 per head-haul voyage in November as the Platts Bunker Charge element was around $33/FEU higher than in September.

Likewise for Transpacific east bound head-haul route, PCR13, it was more pronounced when comparing October 9 and November 17, 2017. PCR13 was assessed at $1,300/FEU for both dates, but the difference in the Platts Bunker Charge was around $48/FEU. This equated to an additional $239,750 for the head haul North Asia to West Coast North America.

NORTH CONTINENT PLATTS BUNKER CHARGE

It is a similar story of box rate volatility and increasing bunker costs for the North Asia to North Continent route. If we take two points on September 17 and December 17, 2017 Platts assessed the spot market, PCR1 at $1,300/FEU on both dates.

The carriers were potentially down around $220,000 per head-haul voyage in December as the Platts Bunker Charge element was around $24/FEU higher than in September. Obviously, once the new sulfur cap is in place, the sums might be considerably bigger with either of the counterparties risking to lose that money, unless there is enough transparency.

Source: Platts

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