Bunkers went up quite heavily in the last 5 days and there are some first signs of cooling down of the oil price raise after this OPEC deal to cut overall output for the next year. Challenge ahead of the Opec’s member is now to have the oil producers, non opec members to get into the game and make sure their efforts won’t be spoiled by others.
For sure on the chartering market, this oil price raise is a good reason for owners not to discount their voyages indication. And for those open in the Atlantic, the tonnage demand remains fairly strong and ships are getting fixed pretty quickly when on the other side, firm requirements, when freight ideas are not in line with owners point of view are remaining open for quite few days. Hard to say now if we are getting in a new era which is going to last. Whichever the duration, Atlantic market is in owners’ favor and it’s probably worth to have some thoughts for chartering people who entered into the market in 2009 or after. They might get a bit stuck before finding solutions on how to negotiate with experienced (the polite word for Old) Greek (the polite word for challenging) Owners when they have only been through a market where owners were swallowing anything, just to get their ships fixed. Charterers time to get back into their terms in the cp’s and see what can be amended as per Owners request without jeopardizing the contract with shippers and or receivers.
Interesting to read according to Drewry that OPEX costs have been shaved by some 4.4% this year This comes after a fall of 1.5% in 2015. According to Drewery, not much buffer left on Owners side to be able to keep cutting opex cost down for 2017. What’s not mentionned in this report but would be interesting to know is where and how owners managed to reduce their opex costs ? via getting cheaper insurance ? doing less maintenance ? doing same but negotiating harder the invoices, paying less crew ? Full article can be found here. shaving opex
And as usual, any comments are welcomed.