The Hi5 spread in Durban has experienced a significant expansion in the last month, primarily due to a sharp increase in the price of Very Low Sulphur Fuel Oil (VLSFO). According to ENGINE's price data, the spread reached $308/mt today, a substantial rise from $80/mt recorded on September 1st. This surge is attributed to VLSFO prices climbing by $245/mt to $1,177/mt, while High Sulphur Fuel Oil (HSFO) prices in the port have remained relatively flat.
For freight forwarders and operations managers, this development means higher bunkering costs for vessels refueling in Durban. Carriers operating on routes that include Durban may adjust their fuel procurement strategies, potentially leading to increased freight rates or bunker surcharges to offset the elevated VLSFO expenses. The widening spread also highlights the ongoing volatility in the marine fuel market, requiring close monitoring for cost management and route planning.