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  • MABUX: Bunker Weekly Outlook, Week 19, 2022
  • 2022 May 12 12:51

    MABUX: Bunker Weekly Outlook, Week 19, 2022

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

    Over the Week 19, the global bunker indices showed a moderate decline. The 380 HSFO Index fell by 21.36 USD: from 744.06 USD/MT to 722.70 USD/MT. The VLSFO Index dropped by 23.23 USD: from 950.12 USD/MT to 926.89 USD/MT. The MGO Index also lost 21.64 USD (from 1298.43 USD/MT to 1276.79 USD/MT). The market still does not have a firm trend amid persistently high volatility.

    The Global Scrubber Spread (SS) weekly average - the price difference between 380 HSFO and VLSFO - unexpectedly increased over the week - for the first time in the last three weeks - plus $8.64 ($210.47 vs. $201.83 last week). At the same time, in Rotterdam, the SS Spread’s average value, on the contrary, showed a significant decrease, falling below $ 200: $ 184.83 versus $ 217.33 (minus $ 32.50 compared to last week). This is the first drop of SS Spread in Rotterdam in the last five weeks. In Singapore, the average price difference of 380 HSFO/VLSFO showed growth, exceeding again the psychological mark of $100: $121.83 vs. $94.67 (up $21.76 compared to last week). SS Spread values do not have any firm dynamics. More information is available in the Price Differences section of mabux.com.

    Gas prices in Europe remain at record levels amid the ongoing escalation of the conflict in Ukraine and concerns about the possible ban on Russian gas import. Price for LNG as bunker fuel in the port of Sines (Portugal) on May 09 was at the level of 2009 USD/MT. LNG prices are still significantly higher than those of traditional bunker fuels. The MGO LS price at the same port on May 09 was quoted at 1367 USD/MT.

    Over the Week 19, the average correlation trend of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) did not change: all major bunker fuel grades are in the overcharge zone in all selected ports. Thus, 380 HSFO fuel’s overcharge margins in a week were: in Rotterdam - plus $ 29 (plus $ 40 at the end of the last week), in Singapore - plus $ 114 (plus $ 125), in Fujairah - plus $ 107 (plus $ 96) and in Houston, plus $102 (plus $115). In the 380 HSFO segment, MABUX MBP/DBP Index (MBI) did not have a single trend: in Rotterdam, Singapore and Houston, the overprice premium dropped, in Fujairah - rose.

    VLSFO fuel grade, according to MBI, was also overpriced at all selected ports: plus $42 (plus $99 a week earlier) in Rotterdam, plus $51 (plus $48) in Singapore, plus $66 (plus $58) in Fujairah and plus $50 (plus $99) in Houston. Here MBI also did not have a firm trend: the overcharge decreased in Rotterdam and Houston, and increased in Singapore and Fujairah.

    As for MGO LS, MBI also registered an overpricing of this type of fuel over the week in all four selected ports: Rotterdam - plus $ 75 (plus $ 116 a week earlier), Singapore - plus $ 26 (minus $ 27), Fujairah - plus $ 126 (plus $108) and Houston - plus $155 (plus $72). In MGO segment, MBI also changed irregular: growth in Rotterdam and Singapore, and decline in Fujairah and Houston.

    Brussels-based Transport & Environment (T&E) has detailed what it believes needs to be included in the FuelEU Maritime proposal to increase the uptake of green hydrogen in shipping. First of three recommendations: T&E called for a 6% mandate of green hydrogen-based fuel to be used in European Union shipping by 2030 under the draft FuelEU Maritime Regulation. In its second recommendation, T&E proposed to advance European Commission (EC)-proposed regulatory targets by five years and set 2050 as the sunset date for the last use of GHG emitting fuels. Finally, T&E called for the application of a multiplier of five to the use of green H2(-based fuels) in shipping under the FuelEU Maritime Regulation. ‘Multiplier functions like a “discount” system allowing the use of each tonne of green H2 (based fuels) count five times towards achieving the regulatory targets,’ explained T&E. ‘In practice, this helps to fully bridge the cost-gap between green H2 (based fuels) and fossil fuels.’Multipliers, said T&E, should only apply to volumes used above the sub-quota in order to provide additional incentives to shipowners/operators to switch to green H2-based fuels.

    We do not expect any firm trend in the global bunker market in the near-term outlook. Next week, bunker indices are likely to continue irregular fluctuations.

    By Sergey Ivanov, Director, MABUX

2022 October 6

18:07 MSC updates Noumea Express service
17:29 Russian Maritime Register of Shipping issues statement on the EU Council press release of October 6, 2022
17:27 100-pct stock of Murmansk Sea Fish Port collected in favor of the state under action filed by FAS
17:12 EU adopts its latest package of sanctions against Russia
17:05 Three partners to join the North Field South development project
16:58 Nexans signs Empire Wind contract to bring renewable energy to New York
16:39 RF Government counts on having about 1,100 various ships built at domestic shipyards by 2030
16:38 JCB appoints Maersk as its new global Lead Logistics Provider
16:13 Port Houston orders 26 eco-efficient hybrid Konecranes RTGs
15:35 EST-Floattech signs contract for refit to hydrogen-electrical propulsion of 'FPS Maas' inland shipping barge
15:20 Cargo traffic on North-South ITC can double by 2030 – Mikhail Mishustin
14:58 KSOE wins orders for 7 vessels worth over KRW2tn - BusinessKorea
14:37 EU agrees on eighth package of sanctions against Russia
13:41 MABUX: Bunker Weekly Outlook, Week 40, 2022
13:19 Port of Gdansk handled over 7.6 million tonnes of coal year-to-date
12:55 Allseas to fit vessels with hybrid power solutions from Kongsberg Maritime
12:15 Russian ships can carry about 90 million tonnes of cargo per year
11:36 LR signs contract with Birdon for new Royal Australian Navy Sail Training Ship
11:08 First batch of coal shipped from Syradasayskoye field on Taimyr peninsula
10:34 AB Klaipėdos Nafta declares purchase option to acquire Independence
10:30 Oil production in Russia to decrease by 6-7% in 2023 - Alexander Novak
10:09 NYK and Group Company to introduce integrated shipping system as a DX Foundation
09:47 Wartsila and Capital Gas to partner in greenhouse gas reduction with Fleet Decarbonisation Programme
09:26 OPEC+ approved oil production cut by 2 million barrels a day
09:01 MABUX: In Global bunker market upward trend to continue on Oct 06
07:50 Crowley completes the purchase of 42 acres in Salem, Massachusetts, for the development of the state’s second major offshore wind port terminal

2022 October 5

18:37 Austal Australia to undertake patrol boat autonomy trial for Royal Australian Navy
18:06 Associated British Ports signs new agreement with the UK’s largest privately owned fertiliser importer
17:55 Initiation ceremony for cadets of Admiral Makarov State University of Maritime and Inland Shipping held in Kronstadt
17:36 Kongsberg Digital signs new partnership agreement with Alpha Ori Technologies
17:25 Unmanned electric passenger ships can appear in Saint-Petersburg
17:06 MSPs back Forth Green Freeport bid to deliver green growth plan for Scotland
16:52 DSME lands LNG carrier orders worth KRW1.85tn - BusinessKorea
16:08 GTT receives an order from Hyundai Heavy Industries for the tank design of seven LNG carriers
15:50 Container traffic on Russian Railways’ internal network in 9M’2022 rose by 3.6% YoY
15:36 WSC, ICS and ASA submit their input to the European Commission on the renewal of the CBER
15:27 Bunker sales at Vladivostok port in 9M’2022 fell by 28% YoY
15:04 Alfa Laval to be a technology partner for the project to investigate the on-board capture, storage and off-loading of carbon dioxide
14:41 IMO's GreenVoyage2050 celebrates five years of its Global Industry Alliance to Support Low Carbon Shipping
14:18 Marine passenger infrastructure of Saint-Petersburg should be converted to cater for inland water transport ‒ expert
14:12 ABS approves pioneering autonomous technology for HHI Group
13:54 NOREBO commences preparation works on construction of reefer terminal “Udarnik” in Murmansk Region
13:32 Pavilion Energy and MOL name newbuild LNG bunker vessel
13:02 General cargo ship bound for Russia disabled in Bosphorus - FleetMon
12:42 USC commences serial production of propulsion/steering units ДРК1200М
12:20 UK Government funds consortium led by Unitrove to deliver world’s first zero-emission multi-fuel station for hydrogen and electric ships
12:01 Finnlines to launch two new ro-pax vessels in autumn 2023
11:36 MOL signs LNG carrier charter contract for Sakhalin II project
11:29 Throughput of Azov port in 9M’2022 fell by 13% YoY to 6.8 million tonnes
11:21 Port of Rotterdam Authority presents future scenarios for 2050
11:01 Singapore sets out to drive transformation in bunkering on the world's largest forum for the marine fuel industry
10:39 A.P. Moller - Maersk orders six large ocean-going vessels that can sail on green methanol
10:20 Anemoi and COSCO Shipping Heavy Industry to offer full wind propulsion technology installation services
10:05 Shearwater GeoServices to introduce the geophysical company’s first dual ROV seismic vessel
09:39 MOL joins Blue Visby Consortium
09:28 Traffic volumes on Ust-Luga – Baltiysk ferry line are stable
08:52 MABUX: Upward changes to continue in Global bunker market on Oct 05

2022 October 4

18:43 Samskip adds Value Maritime CO2 capture to decarbonisation strategy
18:32 DEME upgrades DP fallpipe vessel fleet
18:24 Lomar Shipping announces the corporate acquisition of Carl Buttner