THE declining bunker fuel prices along with a marginal rise in the freight market could provide some relief to Indian shipping firms, which are currently submerged in losses. The price of bunker fuel, which accounts for more than 60 per cent of the operating cost of vessels, has witnessed a downward trend since March.

The cost of crude, having fallen sharply over the past few months, has pushed bunker fuel prices to around $ 592 per tonne from $ 730 per tonne.

"Of course, bunker fuel price has been falling in the backdrop of a fall in crude prices. But going forward, the suppliers are also realising that it is difficult for shipowners to operate at such rates as the Baltic Index has been rising marginally," said a senior official of an Indian shipping company.

Source : Exim News Service - MUMBAI, June 26