• 2024 April 18 12:16

    MABUX: Bunker Outlook, Week 16, 2024

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    During Week 16, the MABUX global bunker indices showed mixed dynamics with no a clear trend. The 380 HSFO index rose by 2.83 USD: from 549.31 USD/MT last week to 552.14 USD/MT. The VLSFO index fell by 1.88 USD (694.83 USD/MT versus 696.71 USD/MT last week), consistently staying below the $700 mark. The MGO index decreased by 11.06 USD (from 906.48 USD/MT last week to 895.42 USD/MT), falling below the 900 USD mark. At the time of writing, there are signs of a downward trend in the global bunker market.

    MABUX Global Scrubber Spread (SS) – the price difference between 380 HSFO and VLSFO - decreased by $4.71 ($142.59 vs. $147.40 last week). At the same time, the weekly average showed a symbolic decrease of $0.26. In Rotterdam, SS Spread increased by $6.00 (from $119.00 last week to 125.00), maintaining above the $100.00 mark (SS Breakeven), with the weekly average up by $4.50. Conversely, in Singapore, the difference in the price of 380 HSFO/VLSFO, reduced by $7.00 ($138.00 versus $145.00 last week), with the weekly average down by $1.66. We expect continued uncertainty in the SS Spread dynamics for the upcoming week. More information is available in the "Differentials" section of mabux.com.

    European natural gas prices surged last week due to Russia's escalation of attacks on Ukrainian energy infrastructure. This retaliation followed a series of Ukrainian strikes on Russian oil refineries. Reuters estimates that these attacks have disrupted approximately 14% of Russia's total refining capacity. Washington has criticized these energy-focused attacks, expressing concerns that they could further elevate global oil prices. Additionally impacting European natural gas futures were reports of significantly reduced natural gas flows into the Freeport LNG export plant in Texas, attributed to problems with a liquefaction train.

    On April 15, the price of LNG as bunker fuel in the port of Sines, Portugal, rose to 730 USD/MT, marking an increase of 89 USD from the previous week. Concurrently, the price gap between LNG and conventional fuel narrowed to 165 USD in favor of LNG, down from 285 USD the previous week. On the same day, MGO LS was priced at 895 USD/MT in the port of Sines. For further details, refer to the LNG Bunkering section on www.mabux.com.

    In Week 16, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) highlighted the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports registered undercharging. Weekly averages rose by 7 points in Rotterdam and Houston, while decreasing by 4 points in Singapore and a significant 41 points in Fujairah, where the MDI index dropped below the $100 mark.

    In the VLSFO segment, all ports remained undervalued according to the MDI. Weekly averages rose by 1 point in Rotterdam and 8 points in Houston but declined by 1 point in Singapore and 5 points in Fujairah.

    In the MGO LS segment, Houston shifted to the overcharge zone, with the average weekly ratio increasing by 8 points. All other ports remained undervalued, with weekly levels declining by 21 points in Rotterdam and 25 points in Singapore. In Fujairah, the underprice rate rose by 17 points. Both Rotterdam and Singapore MDI indices fell below the $100 mark.

    By week's end, the balance between overvalued and undervalued ports in the 380 HSFO and VLSFO segments remained unchanged, while in the MGO LS segment, Houston emerged as the sole overpriced port amid overall undervaluation. We foresee minimal shifts in the MDI port index next week, with the prevailing trend of fuel underestimation persisting.

    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.

    Danish Shipping has announced its intention to comply with a ban on scrubber water discharge and has urged for strict enforcement. Following an agreement reached by a wide political consensus, ships navigating through Danish waters will no longer be permitted to discharge exhaust gas system wash water. This ban on scrubber water discharge will be enforced within Denmark's territorial sea, extending up to 12 nautical miles (approximately 22 km) from the coastline. The agreement also commits Denmark to advocate for similar bans in the Baltic Sea and North Sea through regional sea conventions HELCOM and OSPAR. The ban will be implemented in two phases: from 1 July 2025, for ships using scrubbers in open operation that discharge wash water directly into the sea, and from 1 July 2029, for ships employing scrubbers in closed operation.

    The Panama Canal Authority anticipates a return to normal transit capacity by next year, following a period of reduced capacity due to low water levels. This decrease in transits has been notable after Panama recorded its third-driest year on record in 2023. According to the authority, the canal has averaged 27 transits per day this year, a decline from the usual 36 transits per day during the rainy season.

    Next week, we anticipate continued market volatility with irregular shifts in bunker indices.

    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