Stone Oil hikes bunker rates in New Orleans

Bunker prices in New Orleans are set to rise as bunker supplier John W. Stone Oil Distributor implements a new flat rate from 15 August.

PHOTO: Aerial view of the Port of New Orleans, Louisiana. Getty Images

The flat rate will rise from whichever is greater of $15,436 and $14.29/mt, to whichever is greater of $16,980 and $15.72/mt. This means an increase of at least $1,544 or $1.43/mt. This rate will be added to the bunker cost and will only apply to Stone Oil’s deliveries.

The cost of bunkering also depends on where a vessel drops anchor along the Mississippi River. While the majority of vessels aim to anchor in-port (Mile 76 to Mile 120) to avoid additional fees, some may have to anchor further out if space is unavailable, a source says. For instance, bunkering at Mile 0 now costs $30,094, up from $27,358, whereas Mile 56 is now $8,619, up from $7,835.

Stone Oil operates its own barges, which means it does not have to rely on third-party barging firms to deliver stems, like many other suppliers in the area do, a source points out.

“We have evaluated numerous options in order to maintain the rates set more than two years ago,” Stone Oil’s chief operating officer Anthony Odak tells ENGINE.

“Increasing costs of insurance, wages, equipment upgrades, regulatory burdens, and a diminishing labor pool have driven this decision.”

Industry sources say that the rate hike may push some vessels to call at other US ports, but it should not have a significant impact on activity in New Orleans. The nearest major bunkering port is approximately two days of deviation from New Orleans, limiting alternatives for ships already in the area.

By Debarati Bhattacharjee

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