• 2024 April 12 12:49

    MABUX: Bunker Outlook, Week 15, 2024.

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

    During Week 15, the MABUX global bunker indices experienced a marginal decline. The 380 HSFO index fell by 3.26 USD: from 553.99 USD/MT last week to 550.73 USD/MT. The VLSFO index decreased by 3.08 USD (696.00 USD/MT versus 699.08 USD/MT last week). The MGO index declined by a symbolic 0.30 USD (from 906.37 USD/MT last week to 906.07 USD/MT). At the time of writing, there was no clear trend in the global bunker market.

    MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - remained nearly static, edging up by a mere $0.18 to $145.27 from last week's $145.09. Meantime, the weekly average increased by $2.94. In Rotterdam, SS Spread expanded by $3.00 (from $117.00 last week to 120.00), consistently remaining above the $100.00 (SS Breakeven) threshold). The port's weekly average also added $5.83. Singapore witnessed a significant contraction in the 380 HSFO/VLSFO price difference, decreasing by $14.00 to $140.00 from last week's $154.00), breaking through the $150.00 mark, and the weekly average decreased by $9.00. We expect irregular changes in the SS Spread dynamics in the upcoming week. More information is available in the “Differentials” section of www.mabux.com.

    Europe has successfully navigated this winter season with unprecedented levels of natural gas in storage, positioning itself strongly for the upcoming winter. As of the end of March, which marks the conclusion of the typical winter period, European natural gas reserves stand at 58.7% capacity - a new milestone. This surpasses the previous record of 56% set last winter. Europe is now gearing up to replenish its natural gas stocks. However, there are indications that Europe might opt for reduced LNG imports this summer to accommodate weaker demand and moderate the rate of stock accumulation, preventing premature site filling. According to some projections, Europe could reach 90% storage capacity by early August if it maintains the filling rate observed last year.

    On April 08, the price of LNG as bunker fuel at the port of Sines, Portugal, dropped to 641 USD/MT, marking a decrease of 21 USD compared to the previous week. Concurrently, the price gap between LNG and conventional fuel widened on April 08, reaching 285 USD in favor of LNG, up from 263 USD the previous week. On that same day, MGO LS was priced at 926 USD/MT in the port of Sines. For further details, refer to the LNG Bunkering section on www.mabux.com.

    During Week 15, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. the MABUX digital bunker benchmark (MABUX DBP Index)) registered undercharging across major bunker fuels in the world's top four hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, underprice weekly averages widened by 6 points in Rotterdam, 5 points in Singapore, 9 points in Fujairah, and 19 points in Houston. The MDI index in Fujairah remained above the $100 mark.

    In the VLSFO segment, according to MDI, average weekly underpricing levels surged by 6 points in Rotterdam, 21 points in Singapore, 23 points in Fujairah, and 29 points in Houston.

    In the MGO LS segment, Houston shifted to the undercharge zone, marking all four ports undervalued. Weekly average increased by 10 points in Rotterdam, 10 points in Singapore, 29 points in Fujairah, and 9 points in Houston. MDI indices in Rotterdam and Singapore continued to surpass the $100 threshold.

    As Week 15 concluded, no overvalued ports were registered in any segments of the bunker market. The trend towards bunker fuel undervaluation is anticipated to persist next week.

    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.

    BIMCO has reported that ship recycling for bulkers, tankers, and container ships has declined to its lowest level in 20 years over the past two years. This is attributed to robust demand following multiple market shocks and a low order book, which have extended the operational lifespan of older vessels. In the first quarter of 2024, only two million deadweight tonnes (DWT) of ship capacity were recycled, marking the ninth consecutive quarter with recycling levels below three million DWT. The last time recycling remained at such low levels for an extended period was prior to the 2008 financial crisis. Given that the current fleet is significantly larger than it was before the financial crisis, the past eight quarters have seen the lowest recycling rates in two decades. On average, only 0.1% of the fleet has been recycled during this period, compared to an average of 0.45% over the past 20 years. The recent Red Sea situation was identified as the latest in a series of shocks that have increased demand for shipping. Despite the current slowdown in recycling, BIMCO anticipates a rebound in ship recycling in the coming years. Ships that would have been retired and recycled if rerouting around the Cape of Good Hope had not been necessary are expected to be recycled once the Red Sea situation is resolved. Consequently, BIMCO projects that between 2023 and 2033, more than twice as many ships will be recycled compared to the past decade.

    We expect the global bunker market to be dominated by irregular fluctuations with no clear trend in the coming week.

    By Sergey Ivanov, Director, MABUX




2024 May 28

10:41 Astilleros Armon launches the first of twelve new hybrid high-speed ferries designed by Incat Crowther for Italian ferry operator Liberty Lines
10:04 HELCOM adopts new measures to mitigate ammonia emissions from agriculture
09:58 HAV Group receives an order from Fjord1 to design vessel automation and autonomous navigation systems for four ferries

2024 May 27

18:02 QatarEnergy announces FID in the second development phase for Brazil’s Sépia field
17:30 NYK begins first long-term biofuel test run on large crude oil tanker
17:16 Ondas Holdings' Airobotics and HHLA Sky partner to offer drone services
16:53 Seatrium secures FPSO newbuild contracts P-84 and P-85 from Petrobras
16:25 NYK Bulkship (Asia) сommences first shipment of sustainable aviation fuel
15:26 Wind propulsion systems to be installed on 7 vessels operated by MOL Drybulk
14:55 ASCO commissioned the first Handysize class vessel
14:25 Fincantieri launches FREMM frigate "Emilio Bianchi" for the Italian Navy
12:33 Singapore is ready for methanol bunkering for container vessels at Tuas Port
11:58 DP World and Mawani break ground on SAR900 million logistics park at Jeddah Islamic Port
10:42 DEAS and Fincantieri united to strengthen cyber resilience of military and commercial fleets
10:24 GTT receives an order for the tank design of four new LNG carriers
09:57 Singapore carries out ship-to-ship bunkering of close to 1,340 metric tonnes of blended methanol

2024 May 26

15:16 Fincantieri is awarded contract from the US Navy for the fifth and sixth Constellation-class frigates
13:24 ABP’s £35 million offshore energy development to be operational from October 2024
11:18 HPH Trust and Beibu Gulf Port Group agreed to promote trade between Guangxi and Hong Kong
09:26 Shore power plan for Irish, UK ports

2024 May 25

15:33 Bahri could be buyer of four VLCCs with $480 million
14:27 Panama Canal returns to normal operations
12:03 Equinor and partners to invest to maintain high gas production at Troll
11:41 Singapore carries out ship-to-ship bunkering of close to 1,340 metric tonnes of blended methanol
10:12 Australian operator renegotiates ferry deal with Finnish shipbuilder following delays

2024 May 24

18:00 MSC resumes Far East – Baltimore service
17:22 First LNG tugboat with hybrid system goes into operation in Singapore with mtu gas engines from Rolls-Royce
16:47 S. Korea slaps sanctions on 7 N. Koreans, 2 Russian ships for illegal trade with Russia
16:24 COSCO Shipping plans to build 120 ships worth $4.5 billion
15:46 LR award AiP to CMB.TECH and Damen for hydrogen tug solution
13:51 Kongsberg Maritime opens a new facility in Kochi, India
13:11 Wind Challenger to be installed on coal carrier for J-Power
12:41 India, Egypt top destinations for Russian seaborne fuel oil, VGO exports in April
12:21 Newbuilding contracts signed by Greek shipowners are up more than 50% this year to March
11:40 The port of Piraeus receives permission to continue dredging from the State Council
11:05 Eastern Shipbuilding Group awarded contract to construct Fisher Island Ferry
10:49 Huangpu Wenchong receives contract for up to eight methanol-fuelled bulkers
10:28 Cadeler signs installation vessel reservation agreement for upcoming wind farm installation projects
09:58 ScanOcean launches renewable biodiesel fuel
09:42 Uralkali fertilizer exports hit 7.6-million tonne mark by the end of 2023

2024 May 23

18:00 Cadeler places order to build its third A-class vessel
17:34 Van Oord successfully installs first monopile using KENC’s flange mounted upending tool
17:12 The fire engulfed approximately 600 square meters of metal waste on industrial premises at the port of Hamburg
16:57 Hapag-Lloyd resumes CGX service between China, West Africa and Germany
16:38 The world's first methanol-powered container ship now on weekly service to the Port of Gothenburg
15:32 Inmarsat launches combined VSAT, LEO and LTE managed connectivity service
14:52 Dominican Republic, Oman and Saudi Arabia join the International Transport Forum
14:21 Canada’s TMX pipeline expansion to boost Asian crude oil trade
13:44 Norwegian Cruise Line expands its presence across Asia Pacific, Australia and New Zealand with over 30 new itineraries
13:21 Canadian Coast Guard issues $15,000 fine for a hazardous vessel
13:18 MABUX: Bunker Outlook, Week 21, 2024
12:51 Dunkerque LNG launches a request for interest for its Small Scale LNG services
12:11 SITC signs a strategic cooperation framework agreement with Fujian Port Group
11:40 Wartsila to convert two Scandlines ferries to plug-in hybrid operation
11:03 Hapag-Lloyd upgrades sea shuttle service between Ukraine and Romania
10:30 Japanese companies complete the early stages of a cross-industry project to create a secure data exchange system between shipyards and shipowners
10:02 GTT Strategic Ventures and Engie New Ventures jointly invest in CryoCollect to support the development of a unique CO2 capture technology for biogas
09:25 NatPower Marine and Peel Ports Group announce plans for first ‘green shipping corridor’ between UK and Ireland

2024 May 22

18:01 Sea-Intelligence: Avg. minimum transit time up 39% on Asia-MED
17:46 Kongsberg Maritime announces energy-efficient upgrade for Solstad’s Normand Sentinel
17:23 FMC launches investigation of the impact of Canadian regulations on U.S.-flag carriers
16:59 Dataloy Systems launches groundbreaking widgets at Breakbulk Rotterdam
15:34 Pyxis Tankers announces JV agreement to acquire modern dry-bulk vessel
15:32 Vympel unveils two concepts of a universal dry bulk / container carrier of Project 00111 Belomorets
14:25 LR awards Approval in Principle to Seaspan Corporation for next generation feeder ship design
13:59 HD KSOE, SHI faces 1trn won contract delays
13:22 HD Hyundai Marine Solution builds ship smartcare center in Busan
12:42 BBC Chartering takes delivery of first “LakerMax” newbuilding, MV BBC LEER
12:16 Copenhagen Port of Malmo and Green2x enter into a partnership to design and operate a biofuel production plant
11:58 Aker BP extends Deepsea Nordkapp firm contract to end 2026