French container ship company CMA CGM's bunker fuel bill rose by 11pc on the year in the first quarter, as fuel became more expensive immediately after the global sulphur limit came into force on 1 January.
CMA CGM spent $975mn on fuel in the first quarter, up by $100mn. Its fleet complies with the International Maritime Organisation (IMO) 0.5pc sulphur cap by burning 0.5pc fuel oil, or continuing to burn 3.5pc fuel oil on its ships with scrubbers fitted.
Prices for 0.5pc fuel oil rose to $600-780/t in the key bunkering hubs of Singapore, Fujairah and Rotterdam in early January, but then fell to less than $250/t in April and have since been below $300/t. This compares with $300-400/t in the first quarter last year for 3.5pc fuel oil, which was then the most-used fuel.
CMA CGM said it reduced its bunker costs through a surcharge for its customers. It recently waived this as prices fell.
The shipowner also took delivery of one 23,000 twenty-foot equivalent (TEU) LNG-fuelled container ship this year, the Jacques Saade, and expects to take delivery of a further eight later this year. CMA CGM has a 300,000 t/yr supply contract with Total for the nine vessels, which will run for 10 years from 2020.
CMA CGM made a profit of $48mn in the first quarter, up from $43mn a year earlier.
