• 2020 February 4 09:52

    MABUX: Bunker market this morning, Feb 04

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

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) declined on Feb.03:

    380 HSFO: USD/MT 364.36 (-3.85)
    VLSFO: USD/MT 573.00 (-6.00)
    MGO: USD/MT 619.10 (-6.69)

    Meantime, world oil indexes extended their losses on Feb.03, dragged down by worries about lower demand in China, the world's largest oil importer, following a coronavirus outbreak there.

    Brent for April settlement dropped by $3.71 to $54.45 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March fell by $1.45 to $50.11 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $4.34 to WTI. Gasoil for February delivery lost $17.50.

    Today morning global oil indexes have turned into slight upward correction.

    The coronavirus outbreak in China is already impacting demand for fuel. Demand for jet fuel, gasoline, and diesel is likely to be suppressed in the coming weeks, potentially prompting Chinese and other Asian refiners to cut refinery rates. The slowdown in China’s fuel consumption is also aggravated by an extended period of public holidays for office workers and multinational corporations. The weaker fuel demand in China is spilling over onto weakening refining margins for processing crude oil into jet fuel, gasoline, and diesel. Therefore, refiners in China—and elsewhere in Asia—are likely to slow down refinery run rates amid depressed demand and an oversupply of fuels.

    Saudi Arabia produced 9.744 million b/d of crude oil in January, in line with its promise to keep output 400,000 b/d below its new OPEC+ quota. The kingdom plans to produce 9.744 million b/d in February as well. Saudi Arabia over-complied with its quota of 10.31 million b/d last year under the old agreement with the 23-member OPEC/non-OPEC coalition, collectively known as OPEC+, as the country made up for laggards Iraq and Nigeria, which flouted their quotas for most of last year. The coalition deepened its production cuts to 1.7 million starting January 1, 2020 from 1.2 million b/d last year to help soak up excess supply in the first quarter of 2020.

    OPEC+ may hold a technical meeting in the next few days ahead of its March 5-6 meeting in light of the outbreak of the deadly coronavirus, which has killed over 300 Chinese, stoking fears of a global dip in oil demand as crude prices plunged in January.  The gathering of the Joint Technical Committee in Vienna may be held instead of moving up the full ministerial meeting. Urged by Saudi Arabia, OPEC+ has debated moving forward the ministerial meeting, but not all members had been supportive.

    It is reported that over the entire five-year period, 208 oil and gas producers have filed for bankruptcy in the U.S., involving approximately $121.7 billion in aggregate debt. There was an initial wave of more than 100 bankruptcy filings in 2015 and 2016 as the oil price crash pushed some companies to the breaking point. As oil prices recovered somewhat after 2016, the number of filings declined to 24 in 2017 and 28 in 2018. But the fourth quarter of 2018 saw a steep drop in oil prices, and that decline lingered into 2019. This resulted in a jump in the number of filings in 2019 back up to 42.

    Delivered marine fuel VLSFO (0.5%) prices fell to new lows across North Asian ports, tracking the decline in international crude markers, as the Wuhan coronavirus outbreak weighed on sentiment. On Feb.03, MABUX had registered delivered marine fuel VLSFO (0.5%) at Shanghai and Hong Kong at a two-month low of $600/mt and $555/mt, respectively, both down $20/mt from Jan.31. MABUX had also registered the same delivered grade at South Korean ports at a two-month low of $580/mt, $20/mt lower on the day.

    Mitsui OSK Lines (MOL) has warned that the coronavirus outbreak may delay some the scrubber installations scheduled to take place in Chinese shipyards this month. With four Chinese provinces asking companies to extend the Lunar New Year holiday by a week, to next Monday (10 February), workers may not be available to complete installations. Those vessels include no MOL ships.

    India has abolished import tax on very low sulphur fuel oil (VLSFO) used by ships, according to federal budget documents for 2020/21, to reduce costs for local shipping companies. Some local refiners including Indian Oil Corp and Hindustan Petroleum Corp have started making VLSFO to meet demand. The fuel, however, is not available at all Indian ports, necessitating imports. It is expected, that tax exemption will reduce the cost and mostly help the local shipping companies.

    We expect bunker prices for IFO may fell today by 8-15 USD, for MGO – may drop by 15-18 USD.

2021 January 20

18:54 Galeon Yachts announce new outboard model
18:15 CMA CGM announces FAK rates from Red Sea to North Europe & the Mediterranean
17:46 Håkan Agnevall assumes the position of CEO of Wärtsilä on 1 February 2021
17:16 SMM DIGITAL to stream conference programme online free of charge
17:01 GTNS supports 4th International Congress “Hydraulic Engineering Structures and Dredging” as its Sponsor
16:42 U.S. blacklists oil tankers for undermining Venezuela sanctions
16:00 Krasnoye Sormovo shipyard launches dry cargo carrier Vladimir Latyshev
15:24 Port Houston presents 2040 Plan
15:07 RF Navy’s patrol boat "Yaroslav Mudry" conducts exercises in the sea ranges of the Baltic Fleet
14:45 Amendments to increase safety proposed to Finland's Water Traffic Act
14:26 Polaris sets off for the Bay of Bothnia as the season’s third icebreaker
14:02 First vessel certified with Responsible Fishing Vessel Standard by LR
13:41 SMM DIGITAL: Leading international maritime trade fair to stream conference programme online free of charge
13:23 Port of Los Angeles to reward container terminals for higher truck productivity
13:02 Dublin Port throughput increases by +7.6% in Fourth Quarter of 2020
12:35 Seaports of Okhotsk Sea and Tatar Strait increased their throughput by 4.4% YoY
12:21 Port of Zeebrugge container volume up 10.3 percent in 2020
12:10 CMA CGM announces PSS for cargo from India to North Europe & the Mediterranean
11:43 Rosmorport’s icebreakers completed over 2,400 pilotage operations in freezing seaports of Russia this season
11:18 Global Ports’ consolidated marine container throughput for the full year 2020 increased by 6.6%
10:54 Damen signs with Svitzer for ASD Tug 3212
10:54 Capacity of Russian seaports in 2021 to be increased by 50 million tons
10:30 MABUX: Bunker market this morning, Jan 20, 2021
10:12 Cryogas-Vysotsk reaches LNG milestone of one million tons
09:51 Crude oil prices rise on optimism driven by economy support
09:33 Bunker market sees mixed price movements at the Port of Saint-Petersburg, Russia (graph)
09:16 Baltic Dry Index as of January 19

2021 January 19

18:05 Wärtsilä signs a 5-year long-term service agreement with leading Chinese dredging company
17:44 Ventspils Universal Cargo Terminal maintains stable cargo turnover
17:25 CMA CGM announces FAK rates from the Middle East Gulf to North Europe and the Mediterranean
17:00 Annual German Maritime Forum to be held as a digital event on 28 January 2021
16:35 Austal launches VOLTA series of electric-powered high speed ferries
16:15 Market leader in bioplastics chooses port of Rotterdam
15:58 Zvezda starts building second LNG tanker of new ARC 7 class series
15:42 MES-S completes delivery of 87,000 dwt type bulk carrier to OCEAN JADE
15:11 ABS-Classed Suezmax is world’s first ammonia ready vessel
14:41 7th Port Planning & Development Asia Summit to be held live online on 2-5 March 2021
14:20 Alfa Laval joins forces with marine industry players to accelerate decarbonization
14:19 Throughput of port Kavkaz in 2020 rose by 13% Y-o-Y
13:56 Infocus International to hold online course on LNG business in 2021
13:18 Szczecin-Świnoujście Port complex reports on cargo handling in 2020
12:55 Russian Fishery Company demonstrated high results in 2020
12:23 RF Navy’s frigate "Admiral of the Fleet Kasatonov" makes business call at port city of Algeria
12:00 Samskip to start new container service between Amsterdam and Dublin
11:49 Beloomut hydrosystem to begin operation in April 2021
11:04 Over 10,000 frontline maritime personnel to receive COVID-19 vaccinations by end January
10:51 MABUX: Bunker market this morning, Jan 19, 2021
10:46 Costa Toscana floated out at Meyer Turku shipyard
10:20 DP World Antwerp Gateway orders fleet of Automated Stacking Cranes from Konecranes
10:12 BPA: Vaccine prioritisation needed for the unsung heroes of the UK ports sector
09:34 GTT receives its first order of 2021, from a SHI for the tank design of a new LNG carrier
09:27 Oil market sees mixed price movements
09:09 Baltic Dry Index as of January 18

2021 January 18

18:56 CMA CGM applies Local Port Charges for USA imports/export
18:26 The Valencia Containerised Freight Index rises 4.19% in December 2020
18:06 71 vessels were repaired at the “Bibiheybat” Ship Repair Yard in 2020
17:45 Klaipeda State Seaport Authority signs contract for shipping canal dredging
17:26 Hanseaticsoft’s Cloud Fleet Manager endorsed by Singapore government to help shipping companies accelerate their digitisation
17:16 Busan Por secures logistics base in Indonesia
16:47 SCF’s LNG carrier Christophe de Margerie completed her eastbound voyage carrying cargo of LNG along NSR