• 2024 February 22 13:32

    MABUX: Bunker Weekly Outlook, Week 08, 2024

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

    Over the 8th week, the MABUX global bunker indices experienced a moderate decline. The 380 HSFO index dropped by 4.06 USD: from 522.21 USD/MT last week to 518.15 USD/MT, approaching the 500 USD mark. Similarly, the VLSFO index, in turn, decreased by 3.87 USD (672.02 USD/MT versus 675.89 USD/MT last week). The MGO index lost 16.36 USD (from 928.65 USD/MT last week to 912.29 USD/MT). At the time of writing, the market has shown a moderate upward correction.

    The Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO – slightly increased by $0.19 ($153.87 versus $153.68 last week). The weekly average increased by $1.04. Rotterdam witnessed a slight decrease in SS Spread, reaching minus $4.00 (from $119.00 to 115.00), approaching the $100 mark (SS breakeven), and the weekly average dropped by $1.33.In Singapore, the price difference for 380 HSFO/VLSFO narrowed by $1 ($194.00 vs. $195.00 last week), still hovering around the $200 mark. The weekly average, on the contrary, increased by $11.33. Thus, the dynamics of SS Spread show no clear trend yet. More information is available in the “Differentials” section of www.mabux.com.

    Shell projects that global LNG demand will surge by over 50% by 2040, driven by the shift from coal to gas in the power generation and industrial sectors of China and South Asian countries. According to Shell's LNG Outlook 2024, worldwide LNG trade reached 404 million tonnes in 2023, a slight increase from 397 million tonnes in 2022. The growth is constrained by tight LNG supplies, sustaining prices and volatility above historical averages. Despite some regions experiencing peak LNG demand, Shell predicts a continuous global rise, reaching approximately 625-685 million tonnes per year by 2040. China is anticipated to lead LNG demand growth in the current decade, driven by efforts to reduce carbon emissions through the transition from coal to gas. Shell also highlights that despite a well-supplied global market in 2023, the absence of Russian pipeline gas supply to Europe and limited growth in LNG supply over the past year have left the global gas market structurally tight.

    The price of LNG as bunker fuel in the port of Sines (Portugal) continued its upward trend, reaching 616 USD/MT on February 19 (plus 38 USD compared to the previous week). Concurrently, the difference in price between LNG and conventional fuel on January 19 decreased slightly, now standing at 316 USD in favor of LNG versus 391 USD a week earlier: MGO LS was quoted that day in the port of Sines at 932 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    In week 08, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. the MABUX digital bunker benchmark (MABUX DBP Index)) observed the following trends in four selected ports: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all four selected ports remained underpriced. Rotterdam's weekly average underpricing decreased by 28 points, while Singapore, Fujairah, and Houston saw increases of 9, 11, and 9 points, respectively. The MDI index in Fujairah remains above the $100 mark.

    In the VLSFO segment, according to the MDI, Rotterdam has moved into the overcharge zone, where all four selected ports are thus currently located. The weekly average overprice premiums increased by 30 points in Rotterdam but fell by 9 points in Singapore, 9 points in Fujairah and 19 points in Houston.

    Regarding the MGO LS segment, Houston remained the only overcharged port, with the average weekly ratio increasing by 6 points. The other three ports were undervalued, with average weekly underprice margins decreasing by 78 points in Rotterdam, 17 points in Singapore, and 11 points in Fujairah. Underprice levels in Rotterdam and Singapore fell below the $100 mark.

    Thus, according to the MDI index, 380 HSFO and MGO LS remain undervalued in the world’s largest hubs, while overpricing is recorded in the VLSFO segment.

    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.

    In January, Singapore witnessed the sale of approximately 4.85 million metric tonnes (mt) of conventional marine fuel, marking the second-highest monthly total ever recorded at the world's largest bunker port. Although slightly lower than the preceding monthly peak of 4.98 million mt achieved in December, the figures indicate a robust market. Notably, low sulphur fuel oil (VLSFO) dominated the sales, comprising over half of the total at 2.86 million mt. While year-on-year increases were observed in sales of high sulphur fuel oil (1.66 million mt) and marine gasoil (13,500 mt), both experienced a month-on-month decline. Among the fuel grades, VLSFO was the exclusive category to witness sales of bio-blended bunkers, with 45,300 mt of bio-blended VLSFO sold in Singapore last month. Additionally, liquefied natural gas (LNG) sales reached 10,400 mt during the month, while there were no registered sales of methanol. Looking back at 2023, it proved to be a record-breaking year for annual bunker sales in Singapore, with a total of 51.82 million mt of marine fuel sold. This surpassed the previous highest annual total of 50.64 million mt set in 2017, affirming Singapore's position as a global marine fuel hub.

    In the absence of firm movers, we expect Global bunker indices to remain relatively stable next week.

    By Sergey Ivanov, Director, MABUX

2024 April 21

15:07 Steerprop selected to supply main propulsion and tunnel thrusters for CCG's multi-purpose vessels program
13:51 First of its kind TRAktor V3900-DF launched at Uzmar Shipyard
12:37 ABS and DOE sign MOU to collaborate on clean energy development and maritime decarbonization research
11:25 SCHOTTEL to equip four new compact Damen ASD tugs with SRP 270 RudderPropellers
09:57 Hanwha Ocean expands offshore construction presence

2024 April 20

15:02 European ports contend with slow economic growth, geopolitical impact
13:43 AD Ports Group signs strategic agreement with ADNOC distribution for marine lubricants supply
12:17 Stena Bulk completes sale of Stena Blue Sky
10:05 Newbuild ocean tug bolsters growing LNG bunker fleet

2024 April 19

18:02 CMA CGM to strengthen and reshuffle its SEAS1 & SEAS2 services connecting Asia and East Coast South America
17:25 OOCL upgrades Transpacific Latin Atlantic 1/ 2 (TLA1/ 2) service
16:45 The world's two largest hydrogen ships are to be built in Norway
16:15 KEYS Azalea completes first ship-to-ship LNG bunkering in Western Japan
15:40 Port Houston surpasses 1mln TEU mark in Q1 2024
15:29 World's first ammonia dual-fuel Aframaxes to be developed by MISC
14:55 Port of Rotterdam total cargo throughput up 2.0% to 3.3 million TEUs in Q1 2024
14:06 DNV awards certificates for Fortescue’s dual-fuelled ammonia-powered vessel
13:44 Imoto Lines and Marindows launch next-generation zero-emission container ship project
12:41 The Port of Los Angeles and the Port of Long Beach complete a comprehensive Green and Digital Shipping Corridor study
12:20 Ulsan Port Authority signs MOU with Pacific Environment to decarbonize shipping ports in Singapore
11:50 Cavotec signs USD 5 million shore power order with global shipping company
11:22 Rio Tinto selects Alfa Laval OceanGlide fluidic air lubrication with a focus on advancing efficient shipping and reducing emissions
10:45 Steerprop selected to supply main propulsion and tunnel thrusters for Canadian Coast Guard multi-purpose vessels program
10:14 ST Engineering AirX and Bureau Veritas sign cooperation agreement to advance Wing-in-Ground technology
09:38 Solar panels at the Port of Valencia will generate 22% of the energy it consumes

2024 April 18

18:02 DEME wins cable installation contracts from Prysmian for IJmuiden Ver Alpha and Nederwiek 1 offshore grid systems
17:31 RINA awarded contract for Carnival Cruise Line 4th and 5th Excel-class ships
17:18 Cepsa and Evos join up for green methanol storage in Spain and the Netherlands
16:48 ClassNK commences joint research project with JAXA on material compatibility evaluation methods for liquefied oxygen
16:24 Panama Canal announces new measures regarding number of transits and maximum draft
15:50 Kongsberg Maritime secures contract to supply propeller systems to Damen Naval for four Anti-Submarine Warfare frigates
15:24 LR to class Torghatten Nord’s hydrogen-powered ferry duo for Arctic sailings
14:04 CMA CGM sells part of the foreign activities of Bolloré Logistics to the Balguerie Group
13:40 Methanol Institute and SEA-LNG unite against EU trade barriers to biomethane and biomethanol fuels
13:23 DP World launches a new Air Tracking feature to its SeaRates platform
12:31 Port of Los Angeles container volume increases 19% to 743,417 TEU in March 2024
12:16 MABUX: Bunker Outlook, Week 16, 2024
12:11 Coastal Sustainability Alliance boosts development and adoption of maritime biofuel in Singapore
11:43 Ocean Network Express launches reduced emissions shipping service
11:23 Wartsila cargo handling and fuel gas supply systems selected for three new Very Large Ethane Gas Carriers
10:45 Singapore plans production of biofuel blends up to B50 in grade
10:25 Maritime and Port Authority of Singapore and International Energy Agency сollaborate on maritime energy transition

2024 April 17

18:03 Australia and Singapore partner in a $20 million initiative to help reduce emissions in the maritime sector
17:38 EPS strengthens green collaboration with MPA with six Singapore-registered ammonia dual-fuel newbuilds
17:03 HD Hyundai, Scottish firms to cooperate on offshore wind power
16:16 Hanwha Ocean wins 176.4 bln-won order for 1 LPG carrier
15:46 Maritime Book and Claim System advances pilot study to support first movers in zero-emissions shipping
15:00 Port of Antwerp-Bruges cargo volumes up 2.4% to 70.4 million tonnes in Q1 2023
14:47 DOF Rederi AS sells PSV Skandi Gamma
14:24 PIL, CCS partner on alternative fuels and onboard carbon capture and storage
13:44 Total volume of bunker fuel sales at the port of Fujairah increases by 25.2% to 700,918 m3 in March 2023
12:11 Eureka Shipping announces construction of new cement carrier for Great Lakes trade
11:32 MOL to adopt new system to increase capacity and improve operational efficiency of car carriers
11:12 GTT receives an order for the tank design of eight new LNG carriers
10:43 Thailand's Department of Marine and Coastal Resources takes delivery of a new research vessel
10:27 The United States exported a record volume of natural gas in 2023
09:58 TECO 2030 raises NOK 43 million and partners up with Advait in India

2024 April 16

18:04 HD KSOE attains 73% of annual order target in 100 days
17:31 Anglo-Eastern buys Euronav ship manager
17:06 Navig8 takes delivery of the second of six newbuild MRs with emission reducing technology
16:38 IMO’s Facilitation Committee tackles digitalization and autonomous shipping
16:12 World’s largest car carriers ordered with MAN Energy Solutions propulsion package
15:46 Hapag-Lloyd and Seaspan to retrofit five vessels to methanol propulsion
14:13 Asyad Shipping and OQ8 successfully complete first-of-its-kind blended crude oil delivery from Mina Al Fahal to Duqm Refinery
13:54 Hapag-Lloyd unveils its new Strategy 2030
13:14 Singapore aims for over 1 mln tons of low-carbon methanol bunker supply by 2030
12:43 Trafigura to commercially deploy Daphne Technology’s PureMetrics on LNG carrier for precise MRV and optimisation of GHG emissions
12:15 All 12 people rescued from fire on board Tanzanian-flagged cargo ship in Singapore waters
11:49 Drydocks World steel cutting ceremony marks start of UK Norfolk Vanguard Offshore Wind Platforms project
11:23 North Pacific Green Corridor Consortium aims to decarbonize transportation corridor between Canada, Japan and South Korea