Supply Chain Research

The recent slump in oil prices, which has seen WTI drop 23.8% lower than at the end of the third quarter at at Nov. 13, has yet to help shipping companies that have struggled with higher fuel costs. S&P Global Platts data shows bunker fuel costs have only fallen by 3.9% over the same period. Indeed in the fourth quarter so far on average bunker fuel costs are 5.6% higher than in the third quarter while container rates are only 0.6% higher. A sustained lower oil price, a decline in bunker fuel costs to match and the discipline from shipping lines to not cut rates are all needed for sustai...