Bunkering market and dry bulk shipping
Αγορά ναυτιλιακών καυσίμων και ναυτιλία ξηρών φορτίων χύδην
KeywordsBunkering ; Fuel consumption ; Dry bulk ; Cargo vessels ; Efficiency ; Confidence ; Stakeholders.
The significance of the fuel consumption of dry bulk cargo vessels has increased of the years in the dry bulk industry, as vessel revenues have dropped sharply due to a number of factors, the primary being vessel oversupply in the market. Based on the collective and individual market sentiment, views are diverse as to whether or not this is an opportunity for cheap investment that will pay off due to the cyclicality of the dry cargo market, or further depress the already low time charter and freight rates. Within the last years a vast number of newly built ships entered the market and it is questionable whether or not cargo demand will be able to offset the increase in ship supply. As market bunkering services forms one of the most important segments of world oil products trade, the aim of this dissertation was an analysis of the level of impact of economic efficiency on the competitiveness of bulk carriers. The following research was fulfilled by examining supply and demand patterns over the years in dry bulk shipping and its effect on fuel cost and consumption, examining the voyage costs of vessels for optimum economic efficiency, and the several reasons that cause fluctuations in stakeholders’ confidence. As of such, the analysis of economic efficiency related to fuel consumption included the consequent stakeholders’ confidence alterations toward fuel efficiency, since research showed that fuel consumption is of vital importance to economic efficiency when charter rates drop. It was found that top performing vessels based on a benchmark standard, were more fuel efficient than the market laggard vessels, showing a direct correlation between economic efficiency and fuel consumption. Outcomes also indicated that employability of bulk carriers is linked with fuel consumption, as the confidence of stakeholders perceives the comparably lower fuel consumption in relation to competitor vessels as beneficial. However, it cannot be said with certainty that any possible cost for ordering a fuel efficient vessel will provide the optimum choice. Overall, it is considered that energy efficiency is the most important factor for gaining a comparative advantage against competitor vessels.