• 2021 January 21 16:09

    MABUX Bunker Weekly Outlook, as of Jan 21, 2021

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

    The COVID-19 pandemic’s spread is taking center stage again and markets are getting increasingly worried about the long duration of European lockdown and about the new restrictions in China. Border closures, social distancing measures and shutdowns will continue to constrain fuel demand until vaccines are more widely distributed.

    The World Bunker Index MABUX displayed irregular fluctuations over a week. As a result, the 380 HSFO index fell from 367.25 USD/MT to 365.95 USD/ MT (-1.30 USD), VLSFO added 1.00 USD: from 461.00 USD/MT to 462.00 USD/MT while MGO gained 2.25 USD and changed from 515.58 USD/MT up to 517.83 USD/MT. The Global Scrubber Spread (SS) (price difference between 380 HSFOs and VLSFOs) continue firm widening trend: it has risen by 6.40 USD and averaged USD 94.96 (88.56 USD a week ago).

     

     

     

     

     

     

     

     

     

     

    Correlation of MBP Index (Market Bunker Prices) vs DBP Index (Digital Bunker Prices) in the four global largest hubs over the past week showed that 380 HSFO fuel remains undervalued in two ports: Rotterdam – by 9 USD and Singapore – by 10 USD, while being slightly overcharged in Fujairah and Houston by 1 and 12 UDSD respectively.  VLSFO fuel, according to DBP Index, was still slightly overpriced in all selected ports ranging from plus 6 USD (Singapore) to plus 25 USD (Houston). DBP Index also showed that MGO LS was undervalued in all ports ranging from minus 19 USD (Rotterdam) to minus 34 USD (Singapore), with the exception of Houston (overvalued by 8 USD).




     

     

     

    Despite the continued moderate growth in bunker prices in early 2021, this trend is largely hampered by the high rate of coronavirus pandemic and related concerns about a recovery in energy demand. Pressed by this factor, the MABUX long-term forecast until January 2023 for the port of Rotterdam (based on active oil-futures contracts as of Jan.20, 2021) shows a possible reversal of the 380 HSFO and VLSFO indices into a moderate downward trend, while prices for MGO LS remain quite stable. Thus, it is too early to speak about a sustainable recovery on the bunker market.




     

     

     

     

     

     

     

     

     

    We expect that in 2021 VLSFO and MGO LS will remain the main types of bunker fuel with a fairly stable demand. Despite concerns regarding the availability of the new conventional VLSFO fuel in the first half of 2020, this problem has now been completely resolved in the vast majority of ports worldwide. Also, by the end of 2020, quality issues of the VLSFO were mainly resolved.

    Traditional high-sulfur fuel 380 HSFO will retain its segment in the market in 2021. The gradual rise in the SS index again added to the attractiveness of using scrubbers in combination with the 380 HSFO. However, in the medium term, one should hardly expect an increase in demand for this type of fuel, both in terms of the further availability of 380 HSFOs and in view of the likely tightening of restrictions to use non-ecological fuels, discussions on which have already entered into an active phase.

    As for alternative types of bunkering fuel, primarily LNG, despite the significant results achieved in 2020 in creating the infrastructure for LNG bunkering (at the end of 2020, LNG bunkering was available in 96 ports of the world, and in 55 ports LNG bunkering terminals were under construction), it is still premature to talk about a significant growth in this segment of the global bunker market in 2021. According to DNV GL, there was no significant growth of the LNG fleet in 2020: 305 vessels versus 276 vessels in 2019. In 2021, the LNG fleet is expected to grow to 445 vessels, but this only amounts to about 1% of the world's total commercial fleet.

    Overall, we expect better results for the global bunker market in 2021, as the roll-out of coronavirus vaccination programs could stimulate global economic activity, which in turn could ultimately lead to higher refinery runs and growing demand for all types of fuels, including marine fuels.




2021 February 25

10:33 Telemar wins 50-vessel service and maintenance contract with Fairplay Towage group
10:21 MABUX: Bunker market this morning, Feb 25, 2021
10:13 BC Ferries releases its third quarter results
09:59 CMA CGM implements FAK rates from the Mediterranean, Adriatic, North Africa & Black Sea to the Indian Subcontinent
09:50 BC Ferries' fifth battery hybrid-electric vessel launched
09:28 Oil market sees mixed price movements
09:12 Baltic Dry Index as of February 24

2021 February 24

18:06 Parkwind selects DEME Offshore for foundation EPCI contract at Arcadis Ost I
17:47 Ministry of Transport of Dagestan looks into organizing sea cruise tourism in Caspian Sea
17:26 ABS to class first ever Jones Act wind turbine installation vessel
17:16 Yangtze River Protection Law will come into force on 1st March, 2021
16:59 Admiral Kasatonov frigate of RF Navy’s Northern Fleet performs long range campaign tasks in Aegean Sea
16:28 Port of Antwerp deploys autonomous drones for safety enforcement
16:15 DFDS aims for greener ferries from alternative fuel project
15:51 Mordraga supports 4th International Congress “Hydraulic Engineering Structures and Dredging” as its Sponsor
15:29 Maersk backs plan to build Europe’s largest green ammonia facility
14:25 Vostochnaya Veft shipyard starts building yet another floating berth for RF Navy’s Pacific Fleet
14:03 Cargill and Maersk Tankers combine volumes and market expertise to launch new bunker procurement service
13:44 Chuvash Republic to be provided with RUB 330 million for purchase of river transport
13:12 Contractors selected to construct the quays in the Amalia Harbour
12:31 Port of Oakland cargo volume off due to crowded ports
12:27 Corvette Stoyky of RF Navy’s Baltic Fleet entered Oman on business call
11:57 Bureau Veritas joins the coalition for the energy of the future
11:23 MPA joins industry in ammonia fuelled tanker JDP
10:31 MABUX: Bunker market this morning, Feb 24, 2021
10:28 ASPO tests main propulsion plant of chemical tanker PortNews
10:09 The Grimaldi Group orders six ro/ro multipurpose vessels
09:27 Crude oil futures go down in response to growth of US resources
09:20 MPA and Yara join to Ammonia-fuelled tanker Joint Development Project
09:11 Baltic Dry Index as of February 23

2021 February 23

19:35 Braemar to repeat record-breaking voyage of Corinth Canal in 2022 with new cruise unveiled by Fred. Olsen Cruise Lines
16:19 Cutter Thetis returns from a 43-day Caribbean Sea patrol
15:11 Meyer Werft starts construction on Arvia for P&O Cruises
14:18 The Coalition for the Energy of the Future unveils its first seven concrete actions and welcomes three new members
13:35 New JOSCAR accreditation: UK office approved for UK defence projects
12:08 MABUX: Bunker market this morning, Feb 23, 2021
11:21 Port of Gdansk lands first delivery of post Brexit fish

2021 February 22

15:12 Hamworthy Pumps wins pump contract for new Royal Navy frigates
13:37 Atlantic Shores announces monumental six-union agreement to train and hire New Jersey union workers
12:24 APM Terminals Algeciras reaches all employees with a safety campaign
11:43 USCG medevacs man from tug boat 60-miles off Grays Harbor
10:37 MABUX: Bunker market this morning, Feb 22, 2021

2021 February 21

14:51 Port of Oakland names Julie Lam CFO
13:22 Guy Cowan takes helm at Port of Brisbane Pty Ltd
12:16 ABP gains international ISO 14001 Environmental Management Certification
11:04 JAX LNG and TOTE Services conduct their first ship-to-ship LNG bunkering of a foreign-flagged vessel at JAXPORT
10:53 Missing yacht found near Whangarei

2021 February 20

18:05 Sevmorzavod shipyard launches starboard pontoon for floating crane of Project ПК-700
16:59 The Panhellenic Crew Union to launch a 48-hour strike at the port of Piraeus in Greece
16:20 Average spot market price for Russian M100 product climbed to RUB 21,600 pmt
15:03 Conrad hosts steel cutting ceremony for GLDD
14:37 Busan Port's chain portal is introduced as a best practice in port digitalization
14:13 Rail subsidiary Metrans to expand network through investment in Hungary
13:48 Government of Finland proposed extension to validity of ships’ crew qualification certificates
13:06 Crowley integrates Jensen Maritime into new Engineering Services Group
12:54 Professor Horst Linde: Container terminal in Świnoujście will fill the gap between Hamburg and Gdansk
12:12 NAVTOR acquires vessel analytics and performance specialist Tres Solutions
11:13 NIBULON launches its sixth non-self-propelled NBL-91 Project vessel
10:49 LNG carrier Christophe de Margerie arrived in Sabetta
10:32 Maine Maritime Academy hires Capt. MacArthur as Master aboard T/S State of Maine