According to the latest data from Ship & Bunker, bunker fuel prices have exhibited a downward trend globally. As of 25th July 2024, the global average bunker price is $567.4/mt, marking the lowest point in five weeks and reflecting a decline of $18.1/mt (3.1%) from the average at the beginning of July. The year began with an upward trajectory in fuel prices, peaking in the first week of July, significantly impacting shippers’ costs. Despite the recent decrease, current prices are still 9.2% higher than the same period last year, when the price was $528.2/mt in July 2023. This trend suggests a general stabilisation in prices throughout July, with minor fluctuations observed over the short term.
On a regional level, the Americas continue to report the highest bunker prices, with an average of $639.83/mt. This region has consistently shown elevated prices due to supply chain dynamics and local demand factors. However, there has been a slight decrease of $7.6/mt since the beginning of July, when the average was $647.5/mt.
In the APAC region, the average bunker price in the last week of July was $528.1/mt, the lowest in 16 weeks. This indicates a significant regional variation and highlights the relatively lower fuel costs in this area.
The EMEA region reported an average bunker price of $532.0/mt, slightly higher than APAC but lower than the Americas.
Lower bunker prices offer substantial cost savings, enabling maritime operators to enhance profit margins and offer more competitive freight rates. However, operators must remain vigilant regarding demand factors such as economic activity, seasonal variations, and geopolitical events, which can significantly influence fuel prices and market stability.
Strategic fuel management and forward-looking procurement strategies will be crucial for operators to mitigate risks associated with fuel price volatility and to maintain a competitive edge in the global market.
Supply chain strategists can use GSCi – Ti’s online data platform – to identify opportunities for growth, support strategic decisions, help them stay abreast of industry trends and development, as well as understand future impacts on the industry.
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