The average VLSFO price across 20 major bunkering hubs has climbed to $882 per tonne as disruption around the Strait of Hormuz keeps marine fuel costs elevated, according to Ship & Bunker.
VLSFO is now 30% above its July low and 69% higher year on year. The average HSFO price has reached $749.50 per tonne, up 42% from its July low and 64% from a year earlier.
The VLSFO-HSFO spread stood at $132.50 per tonne on September 28. During the Hormuz disruption, the differential has been around twice its pre-crisis level and approached $200 per tonne in August, improving the economics of exhaust-gas scrubbers for vessels able to burn cheaper high-sulphur fuel.
Bunker availability for all major fuel grades remained extremely tight in Fujairah on September 29, with supply pressure also evident at nearby Khor Fakkan.
Scrubber installations continue to increase, led by newbuilding orders. Some 67% of existing VLCCs have scrubbers, while 93% of VLCC newbuildings are due to be fitted with the systems.
The corresponding figures were 66% and 92% in June. Installing scrubbers during construction is generally more cost-efficient than retrofitting vessels already in service.