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Friday, December 15, 2017

Higher bunker price assumptions for Worldscale's 2008 Schedule

The Worldscale Associations have announced that the bunker price assumption to be used for the 2008 Worldscale Schedule will be USD 328.75 per tonne, as compared to USD 318.25 for the current 2007 Schedule, and lower than the current market level.

 

Members will recall that the bunker price assumption to be used represents the average worldwide bunker price for 380 cst fuel oil during the period 1 October 2006 to 30 September 2007.

 

This will lead to a general increase in the 2008 WS Flat Rates. The new Schedule will take effect on 1 January 2008.

 

The other main component of the Flat Rate is port costs. The impact of this element will vary with the length of the voyage concerned, as well as with any adjustment made to the port tariffs from the end of September 2006 to end of September 2007. The U.S. dollar has weakened vis-à-vis some currencies, thus the port charges for some ports will increase as converted from local currencies to USD. Some ports quote their port charges in USD in any case, so these will be unaffected unless there has been a change in the tariffs.

 

This is the first time that the Worldscale Associations have announced the bunker price assumptions at such an early stage.

 

We expect to revert in November with indications of some of the other changes.

 

We trust that the Worldscale Schedule for 2008 will be issued mid-December.

 

Contact: Kristian R. Fuglesang