Maersk bunkers consumption fell in 1Q

Danish shipping giant AP Moller-Maersk consumed significantly less bunker fuel in the first quarter, partly because it carried out more voyages with empty containers.

Maersk, which the world's biggest bunker fuel consumer, consumed 2.5mn t in the three months, down by 7.4pc on the same period last year. It paid on average 32pc more for this fuel, at $551/t, and its total bunker costs rose by 22pc to $1.40bn.

Maersk sailed with more empty containers to adjust for lower demand during the Covid-19 lockdowns in China, and later the rest of the world. Its fleet has also become more fuel efficient.

Maersk said the price it paid for 3.5pc fuel oil fell by 13pc in Singapore and by 2.5pc in Rotterdam from the fourth quarter, and the price it paid for 0.5pc fuel oil fell by 13pc in Singapore and 17pc in Rotterdam over the same period. Only vessels equipped with exhaust gas cleaning systems, or scrubbers, can now burn 3.5pc sulphur fuel oil. Maersk had 38 vessels idle during the quarter, mostly for retrofitting of scrubbers.

All bunker fuel prices were pulled down by declining crude prices from quarter to quarter, but 0.5pc fuel oil prices fell sharply from the start of the year because more became available as the International Maritime Organisation (IMO) sulphur limit came into effect.

Maersk's higher fuel costs were mitigated by a 7.9pc year-on-year rise in freight rates, caused by vessels being taken out of service for scrubber fittings and by a large number of blanked sailings, it said. Maersk said that it expects freight volumes to fall across all its businesses, potentially by as much as 20pc to 25pc, in the second quarter.

Maersk made $209mn profit in the quarter, compared with a loss of $656mn the year.

By George Collard