Fuel pricing trends are in uncharted territory today with the unprecedented drop in global demand. Despite the recent OPEC move to cut production, fuel production, similar to ocean carrier operations, cannot shut down completely. Ocean carriers have taken drastic measures in the terms of idling fleet and cancelling sailings, but their bunker formulas were set up to cope with IMO 2020 regulations, and not negative or marginal fuel cost pricing.
Given this environment and the fact that all carriers work off of separate fuel calculations depending on origin, destination and equipment type, we will likewise maintain the same levels as May for June. These levels already represent a decline of -19% from March to April and -26% from April to May.
More information about the IMO 2020 can be found in previous communications or on our shipping partner Hillebrand’s website here: https://www.hillebrand.com/media/publication/imo-2020-regulation
|US Port Region / Equipment||20′ Dry||40′ Dry||20′ Reefer||40′ Reefer|
|Europe to US East Coast||$170||$340||$255||$510|
|Europe to US West Coast||$243||$486||$365||$730|
|Asia to US East Coast||$256||$512||$384||$768|
|Asia to US West Coast||$157||$314||$236||$472|
|South America, South Africa to US||$193||$386||$290||$580|
|Australia, New Zealand to US||$361||$722||$542||$1084|
US Intermodal fuel, containers handled by Hillebrand is 22%.