A bunker price can be precise to the last dollar per tonne and still not tell a buyer what the fuel ultimately

costs. The reason is straightforward: the quoted price captures the economics of the deal at the moment it

is fixed, but it does not capture everything that happens afterwards. Once delivery begins, the commercial

picture starts to depend on the energy and quantity actually delivered, service performance, quality issues

and, in some cases, the claims that follow when things do not go as planned.

For this analysis, we used Fuelsure's aggregated True Cost data across selected bunker market hubs. True

Cost converts those execution effects into a common dollar-per-tonne measure so they can be compared

directly with the quoted bunker price. In simplified terms, True Cost is the quoted price plus quantity and

energy effects, quality effects and service effects; the difference between the quoted price and True Cost is

referred to here as the execution premium. The analysis looks at rolling 12-month performance and

compares the latest six months with the preceding six months, while supplier identities are excluded.

Claims are analysed separately to examine what happens at the more severe end of the risk distribution.

Looking through the numbers, four top-level takeaways stand out:

Execution costs differ by market. Over the latest 12 months, the execution premium was $12.80 in New

York, $9.22/mt in $3.72/mt in Singapore and $5.50/mt in Panama Canal and. The cost of execution is

clearly not the same everywhere…

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