Oil’s Crash Could Help Container-Lines, But Not Yet — Panjiva


Oil’s Crash Could Help Container-Lines, But Not Yet

Corp - Shipping 608 Energy - Bunker Fuel 63 Energy - Crude Oil 194 Global 722 Mode - Containerized 1005 Mode - Seaborne 1273 Theme - Rates 141

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 s...

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