MSC Hits the Emergency Fuel Button, Just in Time For Peak Season — Panjiva
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MSC Hits the Emergency Fuel Button, Just in Time For Peak Season

Corp - Shipping 1026 Energy - Crude Oil 311 Global 1391 Mode - Containerized 1524 Mode - Seaborne 1845 Theme - Rates 239 U.S. 5399

Container-line MSC has issued a “temporary”, “last resort” increase in bunker fuel surcharges after Brent-blend oil prices rose above $80 barrel. That’s unlikely to change given forward markets for oil suggest a drop of just 3% by year end. The risk to corporate profits can be seen in the disparate performance bunker fuel charges (up 28% year-to-date) and container rates (just 2% higher). The first quarter of the year saw a 29% spread between fuel and rates while in the second quarter that widened to 56% points. MSC may partly be a victim of its own success after U.S.-inbound volumes rea...

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