The rising price of marine gas oil (MGO) is putting pressure on bunker barge operators in Singapore, according to reports.
Sources quoted by Platts said operators in the port were negotiating a rise in rates. Some sources suggested rates could double.
"Obviously our customers want to keep their costs low, but it is hard for us not to raise prices especially when our own fuel costs are going up," one barge operator was quoted as saying.
Bunkerworld data showed Singapore MGO prices touched $840 per metric tonne (mt) on January 4. They have since slipped to just over $800 per mt; that’s still more than $200 per mt above levels in May. Barge operators are also facing increased costs as they move to upgrade their fleets.
Sources quoted by Platts said operators in the port were negotiating a rise in rates. Some sources suggested rates could double.
"Obviously our customers want to keep their costs low, but it is hard for us not to raise prices especially when our own fuel costs are going up," one barge operator was quoted as saying.
Bunkerworld data showed Singapore MGO prices touched $840 per metric tonne (mt) on January 4. They have since slipped to just over $800 per mt; that’s still more than $200 per mt above levels in May. Barge operators are also facing increased costs as they move to upgrade their fleets.