MABUX Digest: Top events on global bunker market: Week 14

The Digest 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) demonstrated irregular trend while 380 HSFO gained one dollar globally but VLSFO and MGO continued sliding evolution in the period of Mar 30 - Apr 03:

380 HSFO 248.96 → 249.98 USD/MT (plus 1.02 USD)
VLSFO       314.00 → 305.00 USD/MT (minus 9.00 USD)
MGO          404.57 → 392.73 USD/MT (minus 11.84 USD)

• Nigeria has imposed new restrictions on cargo ships entered the country’s ports as part of its efforts to restrict the spread of the coronavirus outbreak. Nigeria is not the first to introduce restrictions on cargo ship movements in response to the coronavirus. On 18 March Australia’s Maritime Safety Queensland (MSQ) issued a direction which bans ships from entering a Queensland pilotage area if they, or any persons onboard, have travelled to or transited through a country outside Australia within the previous14 days.

• Bunker suppliers in India have seen marine fuel enquiries drop sharply in recent weeks, and the trend is likely to continue, with some pointing to a minimum 10%-15% year on year fall for 2020 in bunker fuel demand as trade slows during this lockdown.

• Very low sulfur fuel oil (VLSFO) production in South Korea is set to rise from this month after oil producer SK Energy completed an upgrade at its Ulsan refinery. The company started commercial production from the new vacuum residue desulfurisation unit at the Ulsan plant on March 14. The new unit adds 40,000 b/d of desulfurisation capacity to the Ulsan site.

• Liquid Wind has announced that it is leading a consortium of companies supporting the Power-to-Fuel project which is looking to produce carbon neutral fuel from captured carbon dioxide (CCU) and renewable green hydrogen. The other members of the consortium include Axpo, COWI, Carbon Clean Solutions, Haldor Topsoe, Nel Hydrogen and Siemens and the project is supported by a €1.7M investment from EIT InnoEnergy.

• China’s State Council will grant export quotas for refined oil products to non-state refineries in the Zhejiang free trade zone, and will also study raising export rebates for very low sulphur fuel oil (VLSFO) and allowing companies to carry out bonded oil blending within the free trade zone.

• Singapore 0.5% marine fuel suppliers and traders have been looking to secure finished grade end-user product due to a lack of available tank space for blending components to make IMO-complaint marine fuel as falling demand leads to a build in inventories. Singapore’s heavy distillate inventory levels averaged 4 million mt in the four weeks ended March 26, up from 3.66 million mt in February and 3.51 million mt in January.

• Vitol Marine Fuels Pte Ltd, a subsidiary of the Vitol Group, has acquired 100% of Singapore-based Sinanju Tankers Holdings; the business has been rebranded as Vitol Bunkers (S) Pte Ltd, which will carry out all deliveries from 1 April.

• BIMCO, the International Chamber of Shipping (ICS) and other industry partners have presented the International Maritime Organization (IMO) with a list of recommendations for governments and relevant national authorities on the facilitation of maritime trade during the COVID-19 pandemic. The recommendations, now issued to all IMO member states via an IMO Circular Letter, address: access to berths in ports, measures to facilitate crew changes in ports, measures to facilitate port operations, and measures to ensure health protection in ports, among other issues.

• Shipping organisations, supported by government and military organisations, have produced a new, free-to-download maritime security guide for ships operating off the coast of West Africa. The publication – entitled Best Management Practices to Enhance Maritime Security for Vessels & Mariners Operating Off the Coast of West Africa – is available to download at www.maritimeglobalsecurity.org, and printed copies of the publication will be available later in the year.

• Fluxys has reported a ‘record quarter’ for LNG turnover at its Zeebrugge terminal, with 72 ship operations conducted over the three-month period. In a statement posted on its website yesterday (31 March), Fluxys said that this total broke down into 15 ships in January, 27 in February and 30 in March.

• Bunkering operations at the Sri Lankan port of Hambantota are now set to begin. The first oil tanker called at the port to discharge fuel and bunkering services officially started on April, 2). The port has low sulphur fuel.

• CMA CGM has announced that, ‘taking into consideration the current price of VLSFO’, the Low Sulphur Surcharge (LSS20) which it introduced on 1 December will not be applicable from 1 May. However, the shipowner added the surcharge ‘may come back later as per our formula’.

• The British Ports Association (BPA) has launched an information hub for UK ports dealing with the coronavirus outbreak. In a statement the BPA said that the intention is to signpost the information that is coming from the government and numerous agencies ‘in one place in a clear and concise manner’ so ports are not overwhelmed by the tide of daily updates.

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