Houston (Platts)--4Dec2012/524 pm EST/2224 GMT
The Los Angeles 3.5%S IFO 380 bunker fuel price dropped $24/mt Tuesday to $597.50/mt, the lowest level Platts assessed it at in five months, and market sources attributed the decrease to lack of demand as container terminals remain closed due to a labor strike at the port. The last time Platts assessed bunker fuel near this level was on July 6, when it was assessed at $591/mt. Market sources had been attributing the drop in bunker prices on the West Coast in general to the wide spread between West Coast bunker prices and Singapore, but the relationship to Los Angeles flipped Tuesday. This is the first time since October 3 that the price of IFO 380 in Los Angeles has been assessed at a discount to IFO 380 ex-wharf in Singapore, when it was assessed at a $3/mt discount. Platts assessed Los Angeles IFO 380 Tuesday at a $6.50/mt discount to Singapore, which is the steepest discount since September 19, when it was assessed at a $10.50/mt discount. Article continues below... Sign up to Bunkerwire today. Bunkerwire is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector.
The Los Angeles 3.5%S IFO 380 bunker fuel price dropped $24/mt Tuesday to $597.50/mt, the lowest level Platts assessed it at in five months, and market sources attributed the decrease to lack of demand as container terminals remain closed due to a labor strike at the port. The last time Platts assessed bunker fuel near this level was on July 6, when it was assessed at $591/mt. Market sources had been attributing the drop in bunker prices on the West Coast in general to the wide spread between West Coast bunker prices and Singapore, but the relationship to Los Angeles flipped Tuesday. This is the first time since October 3 that the price of IFO 380 in Los Angeles has been assessed at a discount to IFO 380 ex-wharf in Singapore, when it was assessed at a $3/mt discount. Platts assessed Los Angeles IFO 380 Tuesday at a $6.50/mt discount to Singapore, which is the steepest discount since September 19, when it was assessed at a $10.50/mt discount.
Article continues below...
Bunkerwire is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector.
Multiple container terminals at the Los Angeles-Long Beach port complex remained closed Tuesday, according to the ports' web sites. Three of the six container terminals at the Port of Long Beach remained closed, the same amount closed on Friday, according to the port's website. Seven of the eight container terminals at the Port of Los Angeles remained closed, the same terminals affected Thursday and Friday, according to that port's website. The Local 63 Office Clerical Unit of the International Longshore and Warehouse Union set up pickets at the ports, according to the union's website. OCU's members have been working without a contract for 30 months while negotiations continued with carriers and terminal operators. Longshoremen with the ILWU have refused to cross the OCU picket line, further snarling port operations.--Lucretia Cardenas, lucretia_cardenas@platts.com --Edited by Robert DiNardo, robert_dinardo@platts.com
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