• 2022 February 24 14:34

    MABUX: Bunker Weekly Outlook, Week 08, 2022

    The Weekly Outlook was contributed by Marine Bunker Exchange (MABUX)

    On a Week 08, the MABUX World Bunker Index changed sideways with no firm trend. The 380 HSFO Index rose by 14.55 USD: from 585.76 USD/MT to 600.31 USD/MT. The VLSFO Index went up by 13.26 USD: from 749.95 USD/MT to 763.21 USD/MT. Meantime, the MGO Index fell by 2.11 USD (from 882.26 USD/MT to 880.15 USD/MT). The escalation of tensions in Eastern Europe in recent days may send bunker indexes further up.

    The Global Scrubber Spread (SS) weekly average - the difference in price between 380 HSFO and VLSFO - showed a slight increase during the week: plus $2.12 ($164.13 vs. $162.01 last week). At the same time, in Rotterdam, the SS Spread weekly average dropped from $168.83 to $166.67 (minus $2.16 compared to the last week) and lost 10 points in an absolute value. The SS Spread’s weekly average in Singapore continued widening: plus $5.17 from $210.00 to $215.17. More information is available in the Price Differences section of www.mabux.com.

    Gas prices in Europe have returned to the uptrend, approaching the mark of $1,000 per thousand cubic meters on February 23. Despite this, prices for LNG as a bunker fuel at the port of Sines (Portugal) on February 21 fell by 229 USD to 2100 USD/MT. However, LNG prices are still significantly higher than those of traditional bunker fuel grades. The cost of MGO LS at the port of Sines on February 21 was quoted at 875 USD/MT.

    During Week 08, the average correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) showed that 380 HSFO fuel grade remained overpriced in two ports out of four selected: in Rotterdam - plus $1 and in Houston - plus $6. In Singapore and Fujairah, the MABUX MBP/DBP Index registered an undercharge of 380 HSFO by $21 and $20, respectively. The MABUX MBP/DBP Index continues to shift towards the underpricing of 380 HSFO fuel.

    VLSFO fuel grade, according to the MABUX MBP/DBP Index, remains significantly overpriced at all selected ports: plus $22 in Rotterdam, plus $42 in Singapore, plus $48 in Fujairah and plus $11 in Houston. The most significant was the drop of overcharge ratio at the port of Rotterdam by 11 points.

    As for MGO LS, the MABUX MBP/DBP Index registered an underestimation of this fuel grade in two of the four selected ports: Fujairah moved into the overprice zone at the end of the week: plus 17 (minus $ 6 last week). Houston remains another overvalued port - plus $47. In Rotterdam and Singapore, according to the MABUX MBP/DBP Index, MGO LS was underpriced by $14 and $4 respectively.

    Shell reported the global trade in LNG increased 6% to 380 million tonnes during 2021 as many countries rebounded from the impact of COVID-19. China and South Korea led the growth in LNG demand in 2021. China increased its LNG imports by 12 million tonnes to 79 million tonnes, surpassing Japan to become the world’s largest LNG importer. Overall, global LNG demand is expected to cross 700 million tonnes a year by 2040, a 90% increase on 2021 demand. Asia is expected to consume the majority of this growth as domestic gas production declines, regional economies grow and LNG replaces higher-emissions energy sources.

    Germany’s nine largest seaports say they are ‘sceptical’ as to whether the European Union’s (EU) proposal to expand shore power is the right strategy to obtain a sustainable reduction in emissions by shipping. The port of Bremen/Bremerhaven says that providing on-grid shore power facilities for the approx. 550 berths for seagoing vessels at the German ports – or even only a larger percentage of berth – would require investments of ‘billions of Euros’. It argues investments would have to be borne by the taxpayer and by the ports without any significant support from the ship operators who are responsible for causing the emissions. Moreover, the port of Bremen/Bremerhaven points out that only certain ships would be obliged to use the provided shore power facilities.

    We expect bunker fuel prices to move up next week amid rising tensions in Eastern Europe.

    By Sergey Ivanov, Director, MABUX




2024 May 20

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15:58 IndustriAll Europe and SEA Europe agree on joint priorities ahead of the 2024 EU elections
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2024 May 19

15:43 RWE, Masdar award geophysical surveys contract for DBS West offshore wind farm
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11:29 Yantai CIMC Raffles Offshore Ltd. shipyard launches dual-fuel offshore installation vessel for Van Oord
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10:12 Jan De Nul orders new XL cable-laying vessel

2024 May 18

15:24 SNAM's Q1 total revenues declined 1.9% to 895 million euros
14:17 KOTUG Int'l successfully pilots Tug Drone technology
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11:36 Silver Ships delivers four of seven coastal fast response boats
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2024 May 17

18:10 Bunker fuel sales at the Middle Eastern hub of Fujairah drop on a monthly basis in April 2024
17:52 Lloyd’s Register and Shandong Marine Group sign MoU
16:43 China reveals cooperation methods to protect and restore the Yangtze River
16:03 APM Terminals Barcelona holds the commissioning of 17 Konecranes NSC 644 EHY hybrid straddle carriers
15:13 Marine fuel demand in Panama declined in April 2024
14:43 MITSUI E&S and PACECO commence commercial operations of world's first hydrogen fuel cell zero emission RTG crane at Port of Los Angeles
14:23 ILWU Canada agrees to delay serving 72-hour strike notice on employer DP World Canada
13:31 Barge hits a bridge in Texas, damaging the structure and causing an oil spill
13:10 Container shipping costs on EU-S. Korea route surge over 30 pct amid Red Sea crisis
12:43 DP World invests €130m in Romania
12:21 Astrakhan hosts Russia-Iran talks on shipping cooperation on International North-South corridor
11:41 Seatrium awarded repeat FPSO integration contract from SBM Offshore
11:04 Bureau Veritas report highlights the potential of carbon capture technologies and the development of carbon value chains for shipping
10:41 Electramar christened in Helsinki
10:07 IMO Secretary-General spotlights seafarer safety amidst ongoing Red Sea attacks and resurging piracy
09:58 MABUX: Bunker Outlook, Week 20, 2024

2024 May 16

18:11 Kongsberg and Torghatten to develop self-driving ferry service linking Trondheim and the Fosen peninsula
17:42 “K” Line сonducts first trial use of B100 biofuel for carbon-free operations on car carrier
16:35 Deltamarin and ECOLOG unveil LP LCO2 carrier design
15:40 Seadrill enters agreement to sell its Qatar jack-up fleet
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14:03 The Australian Government announces a funding package of $7.1 billion for budgeted programs to be administered by ARENA
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11:42 MOL and TotalEnergies sign time charter contracts for 2 newbuilding LPG-fueled LPG carriers
10:40 Kalmar and Uniport Livorno agree on new terminal tractor order to enhance reliability, safety and service quality at Italian terminal
10:04 AMSA collaborates on a trial providing more recycling options for visiting foreign ships
09:59 SunGas Renewables and C2X announce strategic partnership

2024 May 15

18:07 MOL holds naming ceremony for newbuilding LNG carrier Greenergy Ocean to serve China National Offshore Oil Corporation
17:30 ClassNK and StormGeo mark significant collaboration to advance maritime decarbonization
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16:45 HD KSOE to lease Subic shipyard in Philippines
16:25 Eidsvaag receives two forage carrier vessels designed and equipped by Kongsberg Maritime
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14:57 LR to support the retrofit of two Stena Line ferries to methanol
13:52 Port of Los Angeles nets record $58 million for harbor maintenance
13:32 CMA CGM to launch MCX - West Coast Central America
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