What are bunker costs in shipping?

What are bunker costs in shipping?

Bunker adjustment factor, bunker surcharge or BAF refers to the floating part of sea freight charges which represents additions due to oil prices. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route.

What is bunker Sea oil?

Also known as: Bunker, Bunkers. Bunker fuel is any fuel used on board a ship. The most commonly used type is residual fuel oil bunker or Bunker C. Grades of Bunker fuel. Bunker A – Gasoil range bunker fuel, typically called marine diesel or marine gasoil.

What is MGO oil?

Marine gasoil (MGO) describes marine fuels that consist exclusively of distillates. Marine gasoil is similar to diesel fuel, but has a higher density. Unlike heavy fuel oil (HFO), marine gasoil does not have to be heated during storage. Marine gasoil and standard heating oil largely share the same properties.

Why is it called bunker fuel?

The name bunker fuel is thought to come from the storage area within a boat or ship where fuel is stored, known as the fuel bunker. Maritime vessels use bunker fuel to power their motors, but depending on your vessel, it might not be regular white diesel.

How much bunker fuel does a ship use?

The amount of fuel actually be used on a sailing depends primarily on the ship’s speed. Most ship engines have been designed for top speeds ranging between 20 and 25 knots per hour, which is between 23 and 28 miles per hour. A Panamax container ship can consume 63,000 gallons of marine fuel per day at that speed.

How dirty is bunker fuel?

Pitch black and thick as molasses, “bunker” fuel is made from the dregs of the refining process. It’s also loaded with sulfur — the chemical that, when burned, produces noxious gases and fine particles that can harm human health and the environment, especially along highly trafficked areas.

Who should pay Bunker Adjustment Factor?

The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel. Also referred to as bunker surcharge, it is tied to the price of Brent crude oil, a major benchmark for worldwide oil prices.

How much does a metric ton of bunker oil cost?

All prices are quoted in USD $ per metric tonne. Global Average Bunker Price is the linear average of all Ship & Bunker price indications for each fuel grade on a given day.

How much does bunker fuel cost per day?

With the cost of bunker fuel at $552 per ton, and with fuel consumption of 217 tons per day, a single 28-day round trip voyage for this one vessel would produce a fuel bill of $3,353,952. This number could be greater for a number of reasons, such as if the voyage were more than 14 days long,…

What’s the average price of a bunker ship?

Global average bunker prices slipped by 4.6% in the first quarter from a year earlier, according to Ship & Bunker’s G20 Index of prices at 20 leading bunker ports.

How much does vlsfo fuel oil cost in Rotterdam?

Latest Prices, VLSFO Fuel Oil, IMO2020 Grade, 0.5%S Date Price $/mt Change High Low F Jul 2 534.00 +1.00 544.00 527.00 T Jul 1 533.00 +6.00 543.50 525.00 W Jun 30 527.00 -1.50 537.00 520.00 T Jun 29 528.50 -4.50 539.00 520.00