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  • MABUX: Bunker Weekly Outlook, Week 48, 2021
  • 2021 December 2 13:42

    MABUX: Bunker Weekly Outlook, Week 48, 2021

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

    Last week ended with the largest one-day drop in crude oil prices since April 2020, as markets reacted to the discovery of the new Omicron coronavirus variant and the introduction of a raft of travel restrictions. Marine fuel prices followed the crude market and experienced significant decline. While uncertainty remains about the potential impact of Omicron on international travel and global trade, there are some signs that the initial reaction to the new variant may have been overly pessimistic.

    On a Week 48, the MABUX World Bunker Index showed a sharp decline in the main grades of bunker fuels. The 380 HSFO Index dropped by 33.85 USD: from 499.36 USD / MT to 465.51 USD / MT. The VLSFO index lost 42.40 USD: from 639.15 USD / MT to 596.75 USD / MT, while the MGO index decreased by 39.91 USD (from 747.33 USD / MT to 707.42 USD / MT).

    Despite the sharp drop of bunker prices, the weekly average Global Scrubber Spread (SS) - the difference in price between the 380 HSFO and VLSFO - remained virtually unchanged over the week, just $ 1.15 down ($ 134.51 versus $ 135.66 last week). Meanwhile, the average SS Spread in Rotterdam rose to $ 135.50 vs. $ 133.33 (plus $ 2.17). However, the most significant change was the growth of the SS Spread average in Singapore by $ 15.84 to $ 173.67 ($ 157.83 last week). Sharp price fluctuations observed in the bunker market over the past week, hampered the formation of a firm SS Spread trend. More information is available in the Differentials section of the www.mabux.com.

    Gas indexes continued to rise on a week: Europe anticipates a cold start of December, higher withdrawals from the storage, while gas supply is tight. On December 01, another increase of LNG bunker prices was recorded at the port of Risavika (Norway) to 1775.37 USD / MT (versus 1592.67 USD / MT a week ago). The current price of LNG in Risavika is 1144 USD up the price of MGO LS in Bergen (631 USD / MT as of November 26). At the same time, the LNG bunker price at the port of Sines (Portugal) jumped on December 01 to 2396 USD / MT (versus 2050 USD / MT a week ago). Here, the current price of LNG is 1701 USD higher than the price of MGO LS - a record premium in 2021.

    The volatility in the global bunker market also affected the correlation differences between the MABUX MBP Index (market bunker prices) and the MABUX DBP Index (MABUX digital bunker benchmark) in the four global largest hubs over the past week. In particular, 380 HSFO grade was underestimated in three out of four ports: in Rotterdam - minus $ 11, in Singapore - minus $ 6 and in Fujairah - minus $ 1. Houston remains the only port where the MABUX MBP / DBP Index registered an overpricing by $ 35.

    VLSFO fuel grade, according to the MABUX MBP / DBP Index, came over to the overcharge segment for all ports: plus $ 9 in Rotterdam, plus $ 56 in Singapore, plus $ 52 in Fujairah and plus $ 30 in Houston. While in Singapore and Fujairah, the overpricing ratio increased by 19 points for each port, in Houston the Index added 29 points at once.

    As for the MGO LS, the MABUX MBP / DBP Index has registered an overcharge of this fuel grade in two out of four selected ports: in Fujairah - plus $ 31 and in Houston - plus $ 22. In all other ports, MGO LS grade was underestimated: in Rotterdam - minus $ 44 and in Singapore - minus $ 11. The most significant change was the increase of overcharge margin in Houston by $ 23.

    Negotiations at last week’s hybrid meeting of the Marine Environment Protection Committee (MEPC 77) have indicated support for zero emission shipping by 2050 – a more ambitious proposition than the IMO’s current 50% GHG emissions reduction goal – but discussions on the IMO's $5 billion R&D fund as well as the use of market-based measures, which are seen by many industry stakeholders as a way of accelerating shipping’s energy transition, have now been moved onto the agenda of the Intersessional Working Group on Reduction of GHG Emissions from Ships which will meet in 2022. A number of countries vetoed both the 2050 zero emission target and the resolution, including Brazil China, Russia, Saudi Arabia and the United Arab Emirates. Meanwhile, one of the top questions was he introduction of a carbon levy on bunker fuel. Countries that were in favour of a carbon levy – either as a standalone measure or as part of a basket of measures – included the EU27, Canada, Japan, Liberia and Pacific Islands nations. However, opposition to this came from a number of countries, including Saudi Arabia, Brazil, Argentina, China and Russia.

    Source: www.mabux.com

2022 January 26

16:03 Deltamarin signs an engineering contract for Höegh Autoliners Aurora Class PCTCs
15:58 Avenir sells the world’s largest LNG bunker vessel
15:55 Rosmorport supports "Soul of the Caspian" expedition aimed at studying and conserving Caspian seal
15:33 Maersk Supply Service launches new venture company to deliver offshore vessel charging
14:40 Throughput of OTEKO Group terminals in Taman surged by 82%, year-on-year
14:13 Fincantieri’s U.S. shipyards join Green Marine
13:48 Yakutia LNG project may need new port facilities in Sea of Okhotsk
13:27 Konecranes provides 17 Automated Rubber-Tired Gantry Cranes in fully integrated solution for Port of Felixstowe
12:37 Freeport of Ventspils handled over 11.1 million tons of cargo in 2021
12:01 DNV selected to lead “pioneering" ammonia bunkering safety study in Singapore
11:32 Superyacht Phi delivered to ABS class
11:23 Smart Ports Russia 2022 to bring together ports and terminals in Moscow
10:58 KN transhipped the first bulk bitumen to a tanker
10:58 Port Houston annual TEUs set record with 15 percent growth
10:37 CIMAC World Congress is postponed to June 2023
10:01 Klaipeda Port handled 45.6 million tonnes of cargo in 2021
09:53 KCC signs pilot agreement for Yara Marine’s ‘FuelOpt’ energy efficiency system
09:39 Baltic Dry Index as of January 25
09:18 Crude oil prices start decreasing
08:33 MABUX: Global bunker market compensates losses from the day before

2022 January 25

18:10 Ports of Los Angeles & Long Beach postpone Container Excess Dwell Fee
17:55 Joint Russian-Chinese naval exercise Peaceful Sea-2022 took place in the Arabian Sea
17:36 Broad scope of Wärtsilä power solutions selected for gas-fuelled ferry trio
17:26 ICTSI's Cavite Gateway Terminal beefs up operations
17:04 BLRT Grupp is constructing a unique floating exhibition centre for Norway
16:45 Port of Los Angeles launches first-of-its-kind cyber resilience center
16:25 IDFA, Port of Los Angeles, and CMA CGM form joint initiative to advance U.S. dairy exports
15:52 MOL announces the world's first successful sea trial of autonomous sailing on a commercial container ship voyage
15:13 Damen commissions Rolls-Royce business unit to supply automation solutions for German Navy’s F126 frigates
15:02 Valenciaport and COSCO collaborate in the automation of the delivery of container seals
14:41 Flag-raising ceremony held on Sibir, first serial nuclear-powered icebreaker of Project 22220
14:02 7.6 million tonnes of goods handled in record quantities at the Port of Kiel
13:36 Glavgosexpertiza approves installation of NSR maritime distress safety system at “Dickson” station
13:12 European shipowners support EU parliamentary proposal on commercial operators and a sector-dedicated fund
12:54 Damen signs up ERMA FIRST to supply world’s smallest Ballast Water Treatment System
12:30 TotalEnergies launches Port of Marseille Fos’ first ship-to-containership LNG bunkering operation
12:11 OOCL posts results for 2021
11:24 RF Accounts Chamber found Russian IWW potential not to be used in full
11:00 European Parliament proposed amendments to EU ETS put Green Deal goals at risk, says World Shipping Council
10:17 Saimaa Canal Commission grants permit to Transport Infrastructure Agency for construction in Saimaa Canal lease area
09:43 Baltic Dry Index as of January 24
09:28 Crude oil prices continue moderate increase
09:15 MABUX: Global bunker prices to trend lower on Jan 25

2022 January 24

18:22 Nakilat takes delivery and management of fourth LNG carrier newbuild
18:09 CMA CGM and TotalEnergies launch Port of Marseille Fos’ first ship-to-containership LNG bunkering operation
17:55 Detachment of RF Navy’s Baltic Fleet went to sea to fulfill tasks of long-distance campaign
17:32 Raiffeisenbank opens USD 20 million credit facility for Sea Port of Saint-Petersburg
17:13 GTMaritime guide sets out future of maritime communications
16:50 Glavgosexpertiza approves construction of coal terminal Port “Vera” in Primorye
16:29 Salus Technical introduces its the cloud-based software Bowtie Master
15:58 Tersan shipyard lays down trawler for Magadan based fishing company Tikhrybkom
15:11 Wärtsilä hits methanol milestone with first newbuild engine order
14:30 Sea Port of Saint-Petersburg to take delivery of over 40 units of handling equipment and one 63-tonne crane in 2022
14:01 Dogger Bank announces supplier events for O&M phase
13:44 BW Offshore signed an agreement for the sale of the FPSO BW Joko Tole
13:21 Loko-Bank shareholder increased his share in FESCO to 26.52%
13:07 Royal Dutch Shell plc changes its name to Shell plc
12:44 FESCO increases number of transit container trains from CPV almost twice in 2021
12:23 EdgeTech rolls out the 6205s2 Swath Bathymetry & Side Scan Sonar System
12:18 PGS secures Northern Lights CO2 storage acquisition contract