Exploring the drivers of bunker fuel prices : from bunker suppliers' perspective
Zhuang, Yu Jun.
Date of Issue2010
School of Civil and Environmental Engineering
Shipping is a volatile industry driven by the world economy. Bunker fuel cost, which contributes a significant percentage of a ship‟s operating cost, is very much dependent on bunker fuel prices. The three market players in the bunkering industry-bunker suppliers, bunker traders and bunker buyers, have different levels of concern and different perceptions about bunker fuel price fluctuations. In order to better cope with bunker price variations and avoid negative consequences, it is important for bunker market players to have knowledge of the price drivers. This paper focuses on the bunker suppliers‟ position, while my project teammates will look at the other two market players. It aims to provide an overview of the macro and micro factors which influence bunker fuel prices, and to assess the degree of impact of each factor, so as to be able to forecast future price trends. Linear regression models are used to find out the degree of correlation between bunker fuel prices and certain drivers. Important parts of the information used in this paper were gathered through interviews with bunker industry professionals, which allowed us to take a more practical approach to the study.
DRNTU::Engineering::Maritime studies::Maritime management and business
Final Year Project (FYP)
Nanyang Technological University