• 2020 January 20 10:36

    MABUX: Bunker market this morning, Jan 20

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

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) continued downward trend on Jan.17:

    380 HSFO: USD/MT 379.18 (-1.65)
    VLSFO: USD/MT 630.00 (-5.00)
    MGO: USD/MT 675.87 (-2.00)

    Meantime, world oil indexes changed irregular on Jan.17 as sluggish economic growth in China, the world’s biggest crude importer, raised concerns over fuel demand and countered optimism from the signing of a China-U.S. trade deal.

    Brent for March settlement increased by $0.23 to $64.85 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March rose by $0.02 to $58.54 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.31 to WTI. Gasoil for February delivery lost $7.25.

    Today morning global oil indexes show slight upward correction.
    China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. This may have been the country’s weakest growth in nearly three decades, but traders zeroed in on the monthly data for industrial production, which grew at the fastest rate since April in December, while retail sales growth stayed at 8% and fixed asset investment ticked up from a multi-year low. All those indicators point to a bottoming out of the world's second-largest economy.

    This follows on from the signing of the trade deal between China and the U.S. earlier last week, which capped - at least for now - hostilities between the globe's two economic powerhouses which have lasted for around 18 months and damaged global growth.

    The spread between high and low sulphur fuel, which widened towards record-breaking territory around the implementation deadline of IMO2020, has now started to narrow slightly. This could indicate that the global fleet has bunkered sufficiently for the first wave of the transition. Many operators will have locked into contracts to ride the first wave of IMO 2020 implementation, but when they come back to the market a clearer picture of the true differentials between high sulphur fuel oil (HSFO), very low sulphur fuel oil (VLSFO) and marine gasoil (MGO) will emerge. Besides, on 1 March 2020, the high-sulphur fuel oil carriage ban takes effect, which prohibits ships without an exhaust gas cleaning system (scrubber) to even carry bunker fuels with sulphur content above 0.50%.

    The International Energy Agency (IEA) believes that ship operators, bunker suppliers and ports have ‘so far coped well’ with the introduction of the IMO 2020 0.50% global sulphur cap. As per IEA, at the start of 2020 the oil market has again faced a period of geopolitical turmoil at the same time as a significant sector is adjusting to a major change to its operating environment. IEA also said that it is starting to see the ‘first data on the transition’ and it ‘appears that deliveries of the new VLSFO bunkers are increasing fast.

    Demand for cleaner bunker fuels, including marine gasoil, in South Korea is expected to increase further, with fuel bills for shipowners likely to rise, as a result of plans to create an impending emission control area, or ECA. The price gap between 0.1% LSMGO [low sulfur marine gasoil] and 0.5% MGO will widen. Currently, the gap is between parity to $10/mt. With the IMO rule starting this year, demand and prices for 0.5% MGO have risen as it is sought as an alternative to 0.5% LSFO amid tight supplies for the compliant fuel. Currently, only SK Energy and Hyundai Oilbank are supplying 0.5% MGO, while all four refiners — SK Energy, Hyundai OIlbank, S-Oil and GS Caltex — are able to supply 0.1% LSMGO. South Korea is going to establish its ECA and implement the 0.1% sulfur limit fuel rule in stages from September this year and fully from January 2022.

    The number of oil and gas rigs in the US increased last week, to 796—an increase of 15 rigs. It is the first weekly gain in four weeks. The total oil and gas rig count is now 254 down from this time last year. For oil rigs, last week saw an increase of 14 rigs, bringing the total to 673—a 179-rig loss year over year.

    We expect bunker prices may demonstrate irregular changes today in a range of plus-minus 1-5 USD.

2020 February 20

18:27 SMOOTH PORTS Partners met and discussed in Livorno
18:07 UNIIQ invests in Tetrahedron’s innovative crane for next-gen wind turbines
17:52 RF Navy’s Admiral Kasatonov frigate left for Barents Sea to continue testing
17:30 Evergreen issues notice for reefer cargo to Shanghai、Ningbo and Xingang, China
17:17 Tersan Shipyard (Turkey) delivers lead crab catching and processing ship of Project ST184
17:00 West Africa Container Terminal to commence Phase 2 upgrade
16:53 Indonesia hosts new national workshop on maritime security risk
16:53 Port of Rotterdam increases sales of LNG and VLSFO
16:29 UN agencies collaborate to promote seafarers’ rights treaty
16:04 INOK TM and Admiral Makarov SUMIS sign agreement on cooperation
15:38 Rosmorport reports on its icebreaker support in Russian seaports as of February 17, 2020
15:11 Rosmorport changes tariffs for services offered at the seaport of Kaliningrad
14:47 BIMCO joins Japan to regulate carbon intensity of existing ships
14:25 ESPO published its Position Paper on European Green Deal objectives in ports
14:02 CHIMBUSCO starts to supply China-produced low sulphur bunker oil to international ships
13:43 Top-level speakers announced for Unmanned Maritime Systems Technology 2020 in London
13:20 Throughput of Russia’s river ports fell by 11.6%, from 143.1 million tonnes in 2010 to 126.5 million tonnes in 2019
13:01 BC Ferries names and christens the first two Island Class ferries
12:46 Bunker prices are flat at the Far East ports of Russia (graph)
12:31 National Marine Dredging Company and Royal IHC launch TSHD GHASHA
12:08 Port of Baku and Tamiz Shahar cooperate on environmental issues
11:48 Hapag-Lloyd improves operating result by more than 80 percent in 2019
11:41 Port of Gdynia widens its internal entrance to 140 m
11:15 CMA CGM announces PSS for exports from East Russia
10:52 Russian Maritime Register of Shipping introduces new scheme of oil and gas equipment approval
10:24 Main contractor Damen and more than a hundred companies contribute to Combat Support Ship
10:24 MABUX: Bunker market this morning, Feb 20
09:53 Ships of RF Navy’s Baltic Fleet left for Atlantic to perform combat training tasks
09:35 Brent Crude futures price is up 0.32% to $59.31, Light Sweet Crude – up 0.45% to $53.73
09:14 Baltic Dry Index is up to 465 points

2020 February 19

18:37 Eni launches hull for Coral Sul FLNG in offshore Mozambique
18:06 Port of Rotterdam aims to become the most sustainable biorefinery in Europe
17:52 NOVATEK’s 2019 profit grew 5.3 times YoY to RUB 865.5 billion
17:31 Royal IHC launches TSHD GHASHA for National Marine Dredging Company
17:28 Wärtsilä and Carnival achieve real-time data exchange between ship and port
17:06 Jan De Nul finishes deepening works in the Port of Maputo
16:46 Port of Hamburg seaborne cargo throughput up 1.1 percent to 136.6 million tons in 2019
16:42 PM Yury Borisov backs RF Transport Ministry’s proposal to assign cargo to Russian-flagged and Russian-owned vessels
16:13 Boston Ship Repair gets Navy's $14.3M contract
15:37 Russia’s market demand for marine fuel to exceed 10 million tonnes in 2020 – PM Yury Borisov
15:10 Inmarsat launches connectivity services in Saudi Arabia across land, sea and air
14:51 FESCO launches new regular container train from Novosibirsk to Khabarovsk
13:48 Russia’s bunker market fell by over 6% YoY to 11 million tonnes in 2019
13:06 Rosneft’s hydrocarbon production in 2019 remained flat YoY at 5.79 mmboed
12:39 Rosneft reports 29-pct increase of its 2019 net income to RUB 708 bln
12:05 Philippine Ports Authority net income soars 31% in 2019
11:47 Konstantin Anisimov appointed as Deputy Head of Federal Marine and River Transport Agency
11:00 Position of the European Federation of Inland Ports (EFIP) on the European Green Deal
10:52 Golar Power forms partnership with BR Distribuidora
10:41 IMO continues its work to counter maritime crime
10:21 MABUX: Bunker market this morning, Feb 19
10:18 Finland accedes to Cape Town Agreement on fishing vessel safety
09:54 Bunker prices go down at the port of Saint-Petersburg, Russia
09:32 Brent Crude futures price is up 1.07% to $58.37, Light Sweet Crude – up 1.05% to $52.84
09:19 Milaha takes part in the Qatar Maritime and Logistics Summit as its main sponsor
09:15 Baltic Dry Index is up to 450 points

2020 February 18

18:00 Petronas signs 12-year time charter party for two new build LNG vessels
17:36 MARAD announces more than $280 million in grants for US ports
17:27 Jotun Marine: Proactive measures needed to improve hull performance
17:06 CMA CGM announces FAK rates from the Mediterranean to USEC and USGULF