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  • 2023 September 29 10:52

    MABUX: Bunker Weekly Outlook, Week 39, 2023

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

    Over the Week 39, the MABUX global bunker indices turned into a moderate decline for the first time in the last four weeks. The 380 HSFO index fell by 3.07 USD: from 586.14 USD/MT last week to 583.07 USD/MT. The VLSFO index, in turn, lost 6.22 USD (689.46 USD/MT versus 695.68 USD/MT last week). The MGO index fell by 11.86 USD (from 1025.01 USD/MT last week to 1013.15 USD/MT), still above the 1000 USD mark. At the time of writing, bunker indices have resumed an upward trend.

    Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - again showed a decrease of $3.15 ($106.39 vs. $109.54 last week), still hovering at the $100.00 mark (SS breakeven). Meanwhile, the weekly average increased slightly by $1.19. In Rotterdam, SS Spread dropped by $6.00 from $37.00 last week to $31.00. The average weekly SS Spread in Rotterdam, on the contrary, increased by $3.34. In Singapore, the price difference between 380 HSFO and VLSFO decreased by $6.00 ($133.00 versus $139.00 last week), while the weekly average rose by $15.50. We do not expect a sustainable trend in the SS Spread dynamics for the following week. More information is available in the “Differentials” section of www.mabux.com.

    Benchmark natural gas prices in Europe and the UK experienced an early drop following the resolution of a labor dispute between Chevron and trade unions, resulting in the cancellation of strikes at two significant LNG export facilities in Australia. European prices have been marked by substantial volatility in recent weeks, primarily attributed to the strikes in Australia and operational issues at major U.S. LNG export facilities. Additionally, European gas prices witnessed a decline as the substantial Troll gas field in Norway resumed production and began increasing its exports to Europe after an extended maintenance period.

    Nevertheless, the price of LNG as bunker fuel in the port of Sines (Portugal) surged, reaching 994 USD/MT on September 25 (plus 154 USD compared to the previous week). The difference in price between LNG and conventional fuel on September 25 decreased significantly: 58 USD in favor of LNG versus 214 USD a week earlier: MGO LS was quoted that day in the port of Sines at 1052 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    During Week 39, the MDI index (the ratio of market bunker prices (MABUX MBP Index) to the digital bunker benchmark MABUX (MABUX DBP Index)) recorded underpricing of all types of bunker fuels in the selected ports.

    Thus, in the 380 HSFO segment, the average weekly underpricing increased in all ports: by 13 points in Rotterdam, by 33 points in Singapore, by 19 points in Fujairah and by 3 points in Houston.

    For the VLSFO segment, according to the MDI, the average undervaluation index increased by 11 points in Rotterdam, 9 points in Singapore, 5 points in Fujairah and 12 points in Houston.

    In the MGO LS segment, the average underpricing premium increased in Rotterdam by 3 points and in Singapore by 13 points, but decreased in Fujairah by 3 points and in Houston by 12 points.

    Hence, the trend of undervaluation in the global bunker market continues. More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section of www.mabux.com.

    The International Energy Agency (IEA) said the world would not need any new long lead-time conventional oil and gas projects or coal mines approved after 2023 as the surge in clean energy deployment could lead to peak fossil fuel demand this decade. The new report, an update on the first such publication from 2021, takes into account the developments in the energy sector in the past two years, including the energy crisis, the conflict in Ukraine, the drive for energy security, and the surge in solar installations and electric vehicle sales. It is predicted, that in a net-zero (NZE) scenario, demand for oil and gas is set to decline by around 20% by 2030. However, the agency noted that investment in existing fossil fuel supply projects is still needed in the NZE Scenario “to ensure that supply does not fall faster than the decline in demand.” The IEA also warned that an “orderly” energy transition is far from certain, especially if fossil fuel investment falls faster than clean energy expansion catching up, or if low-cost resource holders decide to tap more oil and gas to boost their market share and influence fossil fuel prices by restricting production.  

    We expect that next week there will be no a sustainable trend in the global bunker market, while bunker prices will change irregular.

    By Sergey Ivanov, Director, MABUX

2023 December 3

16:03 Northern Lights says LNG-powered CO2 carrier duo more than 60 percent complete
14:31 Maersk reaches settlement over ship that blocked Suez Canal
13:46 ONE launches ELT container service
12:27 Summary of the the Strategic Business Plan 2024 – 2028
10:48 PortNews’ past week main headlines
09:33 Cargo carried by train ferries on the Ust-Luga - Baltiysk line rose 13% in November 2023

2023 December 2

15:38 Global CO2 emissions rise through 2050 in most IEO2023 cases
14:26 ABS supports Edison Chouest’s decarbonization journey with sustainability reporting
12:11 Vard Marine welcomes Terragon Environmental Technologies Inc. into Vigilance preffered supplies program
11:56 New LNG production and marine bunkering capability at Port Hedland, Western Australia with a pathway to IMO 2050 ‘zero-emissions’ through onboard hydrogen production
10:19 Drydocks World and Aker Solutions to deliver two offshore renewable energy platforms for Norfolk Vanguard

2023 December 1

18:07 Leaders of the shipping industry issue joint statement with сall for targeting the highest levels of ambition of the IMO GHG Strategy to achieve Net Zero by 2050
17:40 HD KSOE secures $432 mn order for 4 ammonia carriers
17:37 Yara Clean Ammonia, North Sea Container Line, and Yara International join forces to realize the world's first clean ammonia-powered container ship
17:26 North Salmon Service selects HAV Group Ship Design as cooperation partner to develop an ammonia-fuelled wellboat
17:06 Fincantieri sets the main terms and conditions for the acquisition of Remazel Engineering
16:31 GTT and COSCO shipping sign an agreement for the construction of GTT Membrane Containment Systems
16:07 Fincantieri floats out cruise ship for Viking
15:41 Bureau Veritas unveils Rules for hydrogen-fuelled ships
13:44 Arsenio Dominguez Velasco confirmed as next IMO Secretary-General
13:08 Vale and Oldendorff Carriers commenced the first biofuel voyage on a bulk vessel
12:44 Container traffic along the North-South ITC has doubled since early this year, RZD says
12:34 Hyundai Samho Heavy Industries to build up to ten very large ammonia carriers for Maersk Tankers
12:25 Topsoe and Standard Gas sign MoU to collaborate on UK-based renewable natural gas and methanol project
10:55 Maritime and Port Authority of Singapore and The International Association of Classification Societies collaborates on safe implementation of new maritime solutions
10:46 The SCCV NeoBeton hull was towed to its permanent location in Port of St. Petersburg
10:24 China ports container volume rises 4.9% from January to October 2023
09:58 ZPMC launched two 1,600-ton wind power installation platforms

2023 November 30

18:07 Port of Seattle and Busan Port Authority renew sister port agreement after 42 years
17:32 BW LPG to invest $30 mln in JV with Confidence Petroleum India - Reuters
17:14 64% mull cutting maritime investments amid ESG concerns, reveals Woodrow study
16:47 MABUX: Bunker Weekly Outlook, Week 48, 2023
16:47 GSI delivers world’s first large-capacity battery hybrid double-headed luxury Ro-Ro vessel P&O LIBERTE
16:24 V.Group partners with Aither to provide carbon trading solutions for shipowners
15:44 Zhejiang Seaport opens up new terminal company
15:14 Bollore Logistics launches “SEAalternative” for less carbon-intensive shipping
14:35 AZANE launches ammonia bunker vessel design and partners with Amogy to build zero-emissions bunker vessel
14:04 Russia keeps Black Sea port restrictions in place due to storms - Reuters
13:44 ZeroNorth enables Golden Island to become Singapore’s first 100% digital bunker supplier
13:19 Osbit to deliver world-first cable repair equipment for N-Sea
12:43 Container lines expect greater Panama Canal disruption
11:58 Norwegian Cruise Line сhristens all-new Norwegian Viva in Miami
11:03 Bay-Houston Towing signs contract with Sterling Shipyard to build multiple Robert Allan designed RAstar 3200-W tugs
10:32 PCF, Oceania and RINA enter into MoU for LNG bunkering project at Port Hedland
10:02 Windcat expands its CSOV fleet to a total of five vessels
09:47 Korean shipbuilding companies actively consider overseas expansion

2023 November 29

18:07 Chinese cargo ship sinks off S. Korea's southwestern coast after drifting from China
17:34 LR to class first newbuild project for mid-size low pressure ammonia-ready LCO2 Carriers ordered by Capital Gas Ship Management at Hyundai Mipo Dockyard
17:19 CMB.TECH and Boeckmans to build 4 future-proof hydrogen-powered 5.000dwt general cargo vessels
16:37 Changing frozen food temperatures by just 3 degrees can save CO2 emissions of 3.8 million cars a year, study shows
16:13 Chinese shipyards beat Korean firms in global orders in 2023
15:58 WinGD debuts Variable Compression Ratio technology on NYK Line newbuilds
15:55 New LNG production and marine bunkering capability at Port Hedland, Western Australia, with a pathway to IMO 2050 ‘zero-emissions’ through onboard hydrogen production
14:31 ClassNK releases "Guidelines for Cyber resilience of on-board systems and equipment"
14:02 Sea-Intelligence: Carrier results drop to pre-pandemic levels
13:09 Report: Tool helps shipping stakeholders identify best ports for developing sustainable first mover initiatives
12:41 Fincantieri launches cruise vessel for Tui Cruises
12:11 SCZONE celebrates the groundbreaking ceremony of the DP World-Sokhna $80m Logistic Park
11:53 GTT receives an order from HD Hyundai Heavy Industries for the tank design of two new LNG carriers
11:10 Four new Purus gas carriers to operate with Wartsila cargo handling systems
10:43 Wartsila signs Electrification and Integration Services agreement for USA’s first zero-emission high speed ferries project
10:23 Diana Shipping announces time charter contract for m/v New Orleans with Kawasaki
09:51 CMA CGM to launch Asia Subcontinent 2 Express (AS2) service connecting Asia with the Indian Subcontinent

2023 November 28

18:07 Major Polish cargo operator selects CTPark Gdansk Port as new HQ with 10-year logistics lease totalling 21,000 sqm
17:21 Delfin Midstream signs long-term LNG supply agreement with Gunvor
17:08 Pyxis Tankers to acquire dry bulk vessel from Safe Bulkers
16:47 TGE Marine wins contract for new PCTC class
16:18 Maersk Supply Service introduces a leaner setup and reduces 55 positions
15:53 Korea dominates global orders for VLACs
15:13 ONE sets container ship cargo record