Fri 18 May 2018 09:21

Maersk COO explains unit cost at fixed bunker price, outlines fuel efficiency plan


Soren Toft offers further insight into the Ocean segment's bunker-related results.


Soren Toft, Chief Operating Officer at A.P. Moeller-Maersk.
Image: A.P. Moeller-Maersk
A.P. Moller-Maersk's chief operating officer, Soren Toft, has offered further insight into the Ocean segment's unit cost at fixed bunker price.

In an analysis of the Danish conglomerate's results, Toft has provided a detailed explanation as to the reasons why the unit cost at fixed bunker price jumped $150, or 8.6 percent, to $1,895 per forty-foot equivalent (FFE) unit, including income from vessel sharing agreements (VSAs).

In its quarterly report, Maersk had provided a breakdown of the reasons for the 8.6 percent rise, explaining that 2.5 percent was related to adverse exchange rate developments, 3.4 percent to changes in the portfolio mix following the acquisition of Hamburg Sud in November, and the remaining 2.7 percent primarily related to higher terminal and feedering costs.

And Toft noted in his analysis that "two-thirds of it, so 6 percent out of the 8.6 percent is rate of exchange and the mix effect of Hamburg Sud. The rest is really within mainly the variable cost areas".

Toft went on to explain that whilst feedering costs were higher, third-party feedering carried out by Maersk is not reflected in the fixed bunker cost. Additionally, time charter (TC) expenses also affect feedering costs.

"We have higher feedering costs. You don't really see that in the fixed bunker because when we do third party feedering, the bunker cost is part of the rates that we pay. We have higher TC expenses, which also hits the feedering cost," Toft said.

Maersk's unit cost at fixed bunker price is calculated by assuming a bunker price of $200 per tonne, excluding intermodal but including transhipment hubs and time charter income.

Plan to improve fuel efficiency

As previously reported, Ocean's bunker efficiency fell by 3.4 percent to 972 kg/FFE from last year's figure of 940 kg/FFE. Part of the deterioration, Maersk said, was due to the increased capacity committed to carrying volumes from the slot purchase agreements which are not counted as loaded volume.

Referring to the figures, Toft explained that Maersk has a plan in place to improve this metric.

"We will push harder on fuel efficiency over the coming quarters, as we have now fully integrated the Hamburg Sud fleet since two weeks. We'll do number of things in procurement, a number of things on improving our empty cost base and a number of things on improving utilization where it makes sense," Toft said.


Marius Kairys, CEO of Elenger Sp. z o.o. Elenger enters Polish LNG bunkering market with ferry refuelling operation  

Baltic energy firm completes maiden truck-to-ship LNG delivery in Gdansk.

Samsung Heavy Industries (SHI) virtual reality (VR) training program developed in collaboration with Evergreen. SHI develops VR training solutions for Evergreen's methanol-fuelled ships  

Shipbuilder creates virtual reality program for 16,500 TEU boxship operations.

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu orders 5,000 cbm ammonia bunker vessel  

Japanese firm targets Singapore demonstration after October 2027, with Zeta Bunkering lined up to perform deliveries.

Bunkering of the Glovis Selene car carrier. Shell completes first LNG bunkering operation with Hyundai Glovis in Singapore  

Energy major supplies fuel to South Korean logistics firm's dual-fuel vessel.

Orient Overseas Container Line (OOCL) vessel. CPN delivers first B30 marine gasoil to OOCL in Hong Kong  

Chimbusco Pan Nation claims to be first in region to supply all grades of ISCC-EU certified marine biofuel.

The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.


↑  Back to Top