• 2024 April 25 13:38

    MABUX: Bunker Outlook, Week 17, 2024

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

    Over the Week 17, the world MABUX bunker indices experienced a modest decline. The 380 HSFO index fell by 3.01 USD: from 553.74 USD/MT last week to 550.73 USD/MT. The VLSFO index decreased by 5.85 USD (688.77 USD/MT versus 694.62 USD/MT last week), consistently staying below the 700 USD mark. The MGO index declined by 16.81 USD (from 893.74 USD/MT last week to 876.93 USD/MT). At the time of writing, the global bunker indices showed signs of modest growth.

    The MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - continued its gradual decrease to minus $2.84 ($138.04 versus $140.88 last week), breaking through the $140.00 mark. The weekly average also dropped by $6.55. In Rotterdam, the SS Spread narrowed by $7.00 (from $124.00 last week to 117.00), gradually approaching the $100.00 mark (SS Breakeven). The port's weekly average also fell by $2.66. In Singapore, the 380 HSFO/VLSFO price differential narrowed by $13.00 ($127.00 versus last week's $140.00), and the weekly average decreased by $10.34. We expect the SS Spread reduction trend to persist next week. More information is available in the "Differentials" section of www.mabux.com.

    According to Rystad, LNG bunkering reached a historic peak in 2023, with 4.7 million cubic meters delivered globally, marking a 62% increase from 2022. This growth was mainly fueled by a substantial rise in ship-to-ship (STS) deliveries, which doubled in 2022. As of the end of March 2024, LNG bunkering sales have started robustly, with 1.9 million cubic meters already sold. This figure is nearing the total sales volume for 2022, indicating the potential for a substantial annual increase. If this trend continues, total LNG bunker sales could exceed 7 million cubic meters by the end of 2024, underscoring LNG's growing significance in maritime business and trade.

    The price of LNG as bunker fuel at the port of Sines, Portugal, has climbed to 776 USD/MT as of April 22, marking an increase of 46 USD compared to the previous week. Concurrently, the price gap between LNG and traditional fuel has narrowed, now standing at 77 USD in favor of LNG. This is a significant reduction from the 165 USD difference observed just a week earlier. On the same day, MGO LS was priced at 853 USD/MT in Sines. For further details, refer to the LNG Bunkering section on www.mabux.com.

    In Week 17, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) registered the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports remained in the undervalued zone. Weekly averages dropped by 4 points in Rotterdam, 16 points in Singapore and 13 points in Houston but increased by 8 points in Fujairah.

    In the VLSFO segment, according to the MDI, all ports were undercharged, with average weekly levels declining by 4 points in Rotterdam, 10 points in Singapore, 15 points in Fujairah and 4 points in Houston. The MDI indexes in Singapore and Fujairah approached the 100% correlation mark between the market price and the MABUX digital benchmark.

    In the MGO LS segment, Houston remained the only overpriced port, with the average weekly ratio increasing by 5 points. All other ports remained undervalued, with the weekly average increasing by 1 point in Rotterdam but decreasing by 5 points in Singapore and 68 points in Fujairah. MDI indices in Rotterdam and Singapore consistently remained below the $100 mark.

    At week’s end, the balance of overvalued/undervalued ports across all market segments remained unchanged, with an ongoing general trend towards undervaluation of bunker fuel across the global market segments.

    For more insights on the correlation between market prices and the MABUX digital benchmark, visit the “Digital Bunker Prices” section on www.mabux.com.

    IBIA (The International Bunker Industry Association) and BIMCO have entered into a Memorandum of Understanding (MoU) to jointly address challenges and opportunities in the bunker, marine energy, and maritime sectors, aiming to advance shipping's decarbonisation goals. The collaboration aims to harness their combined expertise and resources to devise innovative solutions promoting the shift towards cleaner fuels and fostering sustainable shipping practices. The key focus areas of this partnership MoU include:

    - Research and Development: Jointly undertake research initiatives, studies, and projects pertinent to the bunker and marine energy industry as well as the broader maritime sector.
    - Information Sharing: Exchange pertinent information, publications, and data to benefit the members of both organizations.
    - Training and Education: Identify and pursue opportunities for collaborative training programs, seminars, and educational initiatives to elevate the competencies of professionals in the maritime, bunker, and marine energy sectors.
    - Influence: Collaborate on advocacy and initiatives to collectively address and overcome industry-specific challenges and issues.

    We expect that next week, the global bunker market will lack clear movers to establish a sustainable trend, with bunker indices likely to continue shifting sideways.

    By Sergey Ivanov, Director, MABUX




2024 May 25

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
11:20 Echandia secures an order for the delivery of battery systems to a Northern European ferry operator
10:43 Asso.subsea and Nexans join forces on historic Celtic Interconnector Project
09:59 EST-Floattech supplies Octopus battery systems to Wight Shipyard for river Thames

2024 May 21

18:02 MOL holds completion ceremony for newly completed operation and maintenance training facility for offshore wind power generation in Kitakyushu
17:37 SAFEEN Group trials first electric tug in Middle East for Marine Services fleet
17:13 First vessel in new fleet of next generation Parramatta River ferries enters service
16:59 Port Houston container volumes up 5% to 324,177 TEUs in April 2024
16:25 The first prototype trials of the Blue Visby solution demonstrate significant savings of CO2 emissions
15:40 New Times Shipbuilding launches LNG dual-fuel bulker for Eastern Pacific Shipping
15:24 New container service to connect the Chinese port of Qingdao with Mexico
14:52 Astrakhan SRZ launches the Project 22870 Rescue Tug Mikhail Chekov
14:47 TFG Marine’s dual-fuel bunker vessel wraps up first refueling in Singapore
14:12 New Zealand’s Kotahi and Maersk sign a second long term freight agreement to December 2034
13:24 TotalEnergies launches the Kaminho deepwater project in Angola
12:04 Headway Methanol Fuel Supply System supports the successful FAT of China's first methanol dual-fuel low-speed engine
11:17 Alfa Laval receives over 100 orders for its low-flashpoint fuel supply system FCM Methanol
10:45 Port of Los Angeles container volume increases 12% to 770,337 TEU in April 2024

2024 May 20

18:00 ADNOC secures equity position and LNG offtake agreement in NextDecades Rio Grande LNG Project
17:31 EDGE Group and Fincantieri formalise MAESTRAL shipbuilding JV and announce 400 mln euro order for 10 naval vessels
17:02 Genevos awarded European Commission funding for hydrogen fishing vessel demonstrator in ‘H2-SEAS’ consortium
16:43 MAI to invest in ship investment fund managed by Navigare Capital Partners
16:29 Three year collaboration between EMEC and FloWave offers wave and tidal energy developers ‘try-before-you-buy’ site simulation capability
15:58 IndustriAll Europe and SEA Europe agree on joint priorities ahead of the 2024 EU elections
14:51 Fincantieri shipyard launches Logistic Support Ship ‘Atlante’ for the Italian Navy's fleet