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  • 2022 November 24 13:17

    MABUX: Bunker Weekly Outlook, Week 47, 2022

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

    Over the Week 47, MABUX global bunker indices demonstrated a firm downward trend. The 380 HSFO index fell by 17.52 USD: from 522.11 USD/MT last week to 504.59 USD/MT, coming close to the psychological mark of 500 USD. The VLSFO index, in turn, fell by 39.57 USD (722.45 USD/MT versus 762.02 USD/MT last week). The MGO index also lost 41.16 USD (from 1129.54 USD/MT last week to 1088.38 USD/MT), breaking through 1100 USD mark for the first time since October 03.

    Global Scrubber Spread (SS) - the price differential between 380 HSFO and VLSFO - continued its firm decline over the week 47 - minus $ 22.05 ($ 217.86 vs. $ 239.91 last week), approaching $ 200. In Rotterdam, SS Spread showed even more significant reduction - by $30.00 to $170.00 versus $200.00 last week. In Singapore, the price differential of 380 HSFO/VLSFO has narrowed by $20.00 ($230.00 vs. $250.00 last week). We expect SS Spread decline to continue next week. More information is available in the Differentials section at mabux.com.

    Natural gas prices in Europe continued upward trend this week. The price of LNG as bunker fuel at the port of Sines (Portugal) rose to 1806 USD/MT on November 21 (plus 90 USD compared to last week). Thus, the price of LNG exceeds the cost of the most expensive traditional bunker fuel grade by 729 USD: on November 21, the price of MGO LS at the port of Sines was quoted at 1077 USD/MT.

    Over the week 47, the MDI (comparison of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) continued to register underestimation of 380 HSFO fuel in all four selected ports. The underprice margins declined slightly and showed: in Rotterdam - minus $117, Singapore - minus $120, Fujairah - minus $180 and in Houston - minus $73.

    In the VLSFO segment, according to MDI, Houston returned to the underpricing zone again, joining Rotterdam and Fujairah: minus $10, minus $63 and minus $5, respectively. Singapore thus remains the only overvalued port - plus $ 8. Undercharge premium has increased, and overvaluation has narrowed.

    In the MGO LS segment, MDI registered fuel underpricing in two out of four selected ports: Rotterdam - minus $55 and Houston - minus $108. Singapore and Fujairah remained in the overpricing zone: plus $42 and plus $167, respectively. MDI did not have a sustainable trend in this bunker fuel segment.

    A new report from the Global Maritime Forum on the development of Green Shipping Corridors has found that ‘activity during 2022 exceeded expectations’ – but urged that ‘some key industry stakeholders, especially cargo owners and fuel producers, will need to be engaged as soon as possible’. The Report also argued that policy support from national governments will need to ‘embrace the challenge of closing the fuel cost gap between zero-emission and fossil fuels. 24 countries express support for the creation of Green Shipping Corridors as a way to demonstrate and deploy the zero-emission solutions necessary for shipping’s transition to zero greenhouse gas emissions. The report found that there has been an encouraging level of activity this year with more than 20 initiatives and 110 stakeholders from all main shipping segments involved – but it added that most of these initiatives remain at a ‘very early stage of development’, with only a handful reaching the feasibility and planning stages so far. Furthermore, the report warned that, so far, the maritime Green Corridors tend to be ‘too shipping-centric’, and therefore more needs to be done to ‘involve cargo owners and producers of future fuels’. Previous analysis has indicated that for shipping’s transition to get on track, 5% of fuels used on deep sea routes would need to be scalable, zero-emission fuels such as clean ammonia, methanol, or hydrogen.

    Global bunker indices may continue to trend lower next week ahead the sanctions against the oil products’ export from Russia to Europe to be imposed on December 05.

    By Sergey Ivanov, Director, MABUX




2023 February 2

12:01 Tallink launches Baltic Sea protection cooperation with John Nurminen Foundation
11:40 Armada Technologies wins contract with Irish Ferries
11:20 India's Adani to invest in Israel after Haifa port takeover - Reuters
11:00 Stolt Tankers performs groundbreaking ship-to-ship methanol bunkering
10:34 ZIM introduces the new Thailand Fremantle Express service
10:14 MOL signs collaboration deal with Nagasaki Prefecture for shipbuilding-related industries and renewable energy projects
10:00 Oboronlogistics’ railway ferries delivered 72,700 t of cargo to Kaliningrad in January 2023
09:18 OPEC+ reaffirmed their commitment to the plan to reduce oil production by two million barrels per day

2023 February 1

18:07 Eleven offshore wind developers and the Carbon Trust to develop first industry-backed method for calculating life cycle carbon footprints
17:31 Ports of Stockholm cargo volumes decrease from 9.1 to 8.9 million in 2022
17:16 I/B Arktika escorted LNG tanker Eduard Toll along the Northern Sea Route
16:57 Port Saint John recieves two new post-Panamax cranes to the container terminal
16:10 Zero VAT rate to be set for ship repair yards investing in production development
15:44 DSME contracts TMC for BW LNG’s carriers
15:24 The Drewry Global Port Throughput Index up by 0.8% in December, but 1.6% lower year-on-year
15:04 KSOE wins 2.53 tln-won order for 12 methanol-fueled container ships - Yonhap
14:47 Aleksandr Masko appointed as General Director of Port One JSC and Transportation Assets Management LLC
14:32 KENC receives contract for design and build of lifting frame for US offshore wind projects
14:08 POSCO International breaks ground for 2nd LNG Terminal in Gwangyang, Korea - BusinessKorea
13:55 Nuclear-powered container carrier Sevmorput to make two round voyages between Saint-Petersburg and the Far East in 2023
13:21 Russia boosts LNG exports to Europe by 20% in 2022 – Refinitiv
13:02 Port of Los Angeles releases draft request for proposals on cruise terminal development
13:00 Russian Railways' network loading in January 2022 fell by 4.8% YoY to 99.2 million tonnes
12:41 Ningbo Containerized Freight Index decline in January 2023
12:13 Long-term ocean freight rates drop by 13.3% in January - Xeneta
11:58 Ministry for the Development of the Russian Far East and Arctic calls on facilitation of border crossing for RF-flagged cruise ships
11:42 PALFINGER awarded a contract by KNRM for twelve custom-built Rigid-Hulled Inflatable Boats
11:17 New Norwegian consortium plans develop a complete hydrogen value chain for Northern Xplorer AS first zero-emission cruise ship
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10:41 Equinor leaves the Barents Blue project as agreement period ends
10:09 OSM is the first Greek ship owner and manager to partner with the Global Centre for Maritime Decarbonisation
09:31 MAN Energy Solutions signs MoU with SH Defence
09:17 FESCO dispatches a batch of electric cars from China to Russia for the first time
09:05 Capacity to increase on the main trade routes in 8 weeks post-Chinese New Year - Sea-Intelligence
08:06 SITC announces the delivery for M/V “SITC ANHE”

2023 January 31

18:02 NSSLGlobal wins coveted UK Ministry of Defence contract
17:28 Marubeni implements the first large-scale offshore wind power project in Japan at Akita Port and Noshiro Port
17:22 Total throughput of Chinese sea and river ports in 2022 climbed by 0.9% YoY
17:16 World’s oldest cruise ship sold for recycling - TradeWinds
17:10 King Abdullah Port registers 3.25% in container, 143% in break bulk and 108% in agri bulk in 2022
16:57 AMSA releases compliance strategy for next four years
16:31 January 2023 sees record-breaking fall in long-term container rates for ocean freight
16:25 Two sister vessels to join MISC’s eco-efficient LNG carrier fleet
15:24 WinGD and CMB.TECH co-develop large ammonia-fuelled engines
15:06 First cargo ship handled at Lugaport terminal in the port of Ust-Luga
14:45 Titan to retrofit two LNG carriers for bunkering in Europe - Ship & Bunker
14:13 Hapag-Lloyd revenues up to USD 36.4 billion in 2022
13:40 Oboronlogistics’ Sparta IV completed yet another voyage to the port of Tartus
13:24 Incident at the Pacific Entrance of the Panama Canal is under control
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10:34 Parliament vote positive step towards competitive ship finance in Europe - ECSA
10:14 NYK and Ghelia form business and capital alliance
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