Bunker costs rise by $50m in a year

ESCALATING OIL prices and global port congestion continue to challenge the seafreight market. “We are particularly struggling with congestion in South Africa where the ports are not capable of handling current volumes and traffic, both from an infrastructure and a management point of view,” says Hoegh Autoliners’ Per Folkessen. The increase in the oil price and bunker costs is also adding significantly to costs, says Folkessen. “We purchase about 500 000 tons per annum. A 10 dollar increase means $5-million and considering that the bunker prices went up over $100 last year, our bunker costs have increased by over $50-million. ”