• 2023 January 26 15:11

    MABUX: Bunker Weekly Outlook, Week 04, 2023

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

    Over the Week 04, MABUX global bunker indices continued sustainable upward trend. The 380 HSFO index rose by 9.14 USD: from 481.88 USD/MT last week to 491.02 USD/MT, coming closer again to 500 USD mark. The VLSFO index added 19.98 USD (719.15 USD/MT versus 699.17 USD/MT last week), having overcome the psychological point of 700 USD. The MGO index also increased by 35.37 USD (from 1038.65 USD/MT last week to 1073.92 USD/MT. At the moment, the global bunker market retains the potential for further uptrend.

    Global Scrubber Spread (SS) - the price differential between 380 HSFO and VLSFO - continued widening over the Week 04 - plus $10.84 ($228.13 vs. $217.29 last week). In Rotterdam, SS Spread rose by $13.00 to $196.00 (vs. $183.00 last week), coming close to $200 mark. In Singapore, the price differential of 380 HSFO/VLSFO increased by $15.00 ($265.00 vs. $250.00 last week). The SS Spread weekly averages in Rotterdam and Singapore also added $8.67 and $26.50 respectively. More information is available in the "Differentials" section at www.mabux.com.

    Europe’s natural gas prices had slumped to the level last seen before the conflict in Ukraine. Mild weather, ample volumes of gas in storage sites—well above the five-year average for this time of the year—and continued LNG imports have dragged gas prices lower in recent weeks.   

    The price of LNG as bunker fuel in the port of Sines (Portugal) continued to decline for the seventh week in a row and reached 1175 USD/MT on January 23 (minus 282 USD compared to the previous week). The price difference between LNG and conventional fuel on January 23 was 130 USD: MGO LS at the port of Sines was quoted at 1045 USD/MT that day. We expect that the trend towards a further narrowing of price difference between LNG and conventional fuel will continue next week.

    During the Week 04, the MDI index (comparison of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) registered underestimation of 380 HSFO fuel in all four selected ports. Underprice ratio rose slightly and reached the following levels: in Rotterdam - minus $ 123, Singapore minus $126, Fujairah minus $165 and Houston minus $76.

    In the VLSFO segment, according to the MDI, Fujairah moved into the overprice zone and joined Singapore and Houston. Fuel overprice margins were registered as plus $6, plus $33, and plus $9, respectively. Thus, at the moment, Rotterdam remains the only port where VLSFO is underpriced: minus $50.

    In the MGO LS segment, the only overvalued port is still Fujairah: plus $ 92. The overprice premium there is gradually decreasing. In all other ports, the MDI registered an underpricing of MGO LS: Rotterdam - minus $ 86, Singapore - minus $ 94 and Houston - minus $ 51. The underprice ratio continued to grow moderately.

    More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section at www.mabux.com.

    Deliveries of residual fuel oil in the US were 221,000 barrels per day (b/d) in December, which reflected decreases of 21.4% m/m from November and 48.8% year-on-year (y-o-y). Last month’s figure represented the lowest level since April 2021, data published by the American Petroleum Institute (API) showed. ‘The demand for residual fuel oil as a marine bunker fuel apparently decreased with the continued drop in container shipping activities, which also corresponded with the Baltic Dry shipping rate index having fallen by 7.7% m/m in December.’ However, deliveries of residual fuel oil in the US for 2022 as a whole rose 6.4% on the year, from 314,000 b/d in 2021 to 334,000 b/d.

    The VeriFuel in its Q4 2022 very low sulphur fuel oil (VLSFO) statistics reports that average global VLSFO viscosity rose to reach 157 cSt in the final quarter, and the figures also highlight a two-year upwards trend in viscosity, starting from 115 in Q1 2021. The highest monthly level for viscosity was 162, recorded in December. VLSFO sulphur content was 0.46%, compared to the 0.45% seen in the first three quarters of the year. At 2.3%, the percentage of off-spec fuel samples reached the quarterly highest of the year in Q4. In the ARA region, viscosity rose over the year, from 142 in Q1 to 173 in Q4. In this market, the percentage of off-spec VLSFOs rose to 5% in the final quarter. This was the highest of the year, with sulphur, water and density noted as contributory factors. Other Q4 off-spec spikes were seen in Busan, where the presence of water contributed to 5.6% of samples being deemed as off-spec.

    The global bunker market retains growth potential ahead of the implementation of the EU ban on Russian oil products set to come into force on February 05. We expect bunker prices to continue their uptrend next week.

    By Sergey Ivanov, Director, MABUX




2024 March 29

18:00 SLB announces agreement to acquire majority ownership in Aker Carbon Capture
17:14 “K” Line and Nippon Gas Line establish a marketing company to provide liquefied CO2 transportation services for carbon capture and storage projects
16:47 VTTI and IKAV enter agreement to purchase majority ownership of Adriatic LNG, Italy
16:25 Mitsubishi Shipbuilding receives order from the University of Tokyo for "MiPoLin" power prediction and lines selection system
15:41 Wan Hai Lines holds naming ceremony for 13,100TEU newbuilding “WAN HAI A15”
15:10 MOL announces restructuring measures
14:45 Drewry predicts impact on container calls at US East Coast ports after the collapse of the Francis Scott Key Bridge
14:25 Chevron’s first hybrid electric fueling barge arrives in Singapore
13:40 HD KSOE and Infineon sign MoU to develop ship electrification technology
13:29 NYK and JMU formulate method for evaluating ship performance in actual seas
12:59 HD Hyundai wins US$463 mln warship order in Peru
12:09 COSCO SHIPPING Ports throughput up by 4.4% YoY to 135,808,554 TEU in 2023
11:46 The "Ane Maersk" calls at the Eurogate container terminal in Hamburg for the first time on its maiden voyage from Asia to Europe
11:20 Sallaum Lines and Fujian Mawei Shipbuilding commence construction of Ocean Class vessels
10:43 Oasis Marine develops solutions for offshore hydrogen bunkering
10:03 Petrofac secures contract extension with ONEgas West in the UK market

2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
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12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
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15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
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11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
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2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels