• 2021 January 7 16:32

    Bunker Outlook as of Jan 07, 2020

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

    Global Bunker Market faced some historically significant challenges last year, it started with IMO2020, the greatest change in fuel regulation in this century, with lot of expectations and contradictory predictions. However, the appearance of the so called “Joker factor” - COVID-19 - drastically changed the situation on the market.

    MABUX MGO LS Global Bunker Index and VLSFO Global Bunker Index fell from January to May 2020 by 57.4% (from 714 USD/MT in January to 304 USD/MT in May) and by 64.7% (from 654 USD/MT to 231 USD/MT), respectively.

    Despite fears that prices for traditional high-sulfur fuel (380 HSFO) would also drop sharply amid limited demand, in reality, 380 HSFO Global Bunker Index in the first half of 2020 remained more stable and decreased only by 45.7% (from 387 USD/MT in January to 210 USD/MT in May).

    However, the main surprise was the sharp reduction in the price difference between VLSFO and 380 HSFO - the so-called scrubber spread Index (SS), which is an indicator of economic attractiveness for one of the main ways to comply with IMO2020 regulations: the use of scrubbers in combination with cheap high-sulphur fuel oil. The 90% drop of SS Index (from 275 USD in January to 25 USD in May) in the first five months of 2020 led to a sharp decline in scrubber orders and to delays and cancellations of the installations of ordered scrubbers.

    The second half of 2020 was marked by a gradual recovery in demand in the global bunker market supported by vaccines optimism and reflected in a moderate increase in bunker fuel prices, which continues to these days. MGO LS Index increased by 38% to 490 USD/MT, VLSFO Index - by 46% to 427 USD/MT, 380 HSFO Index - by 38.6% to 342 USD/MT. The revival of the market was reflected in the SS spread Index as well - it widened by 70% to an average of 83 USD, bringing back the relevance of scrubbers’ solution.

    Correlation of MBP (Market Bunker Prices) Index vs DBP (Digital Bunker Prices) Index at four global largest hubs (Rotterdam, Singapore, Fujairah and Houston) in December 2020 showed that 380 HSFO fuel was undervalued in Rotterdam (minus 6 USD/MT). At the same time, in Singapore there was a situation when both MBP and DBP Indices had a 100% correlation on 380 HSFO and VLSFO in December. In Fujairah and Houston, both types of fuel: 380 HSFO and VLSFO, remained overpriced (380 HSFO: plus 11 USD/MT and plus 19 USD/MT, respectively; VLSFO: plus 11 USD/MT and 33 USD/MT, respectively). MGO LS, in turn, was undervalued at all selected ports ranging from minus 17 USD/MT to minus 32 USD/MT, with the exception of Houston (was overvalued by 12 USD/MT).

    We anticipate a stronger year ahead as the rollout of coronavirus vaccine programs allows global activity to recover which will led to higher refinery runs and growing demand for all types of fuels, including marine fuels.

2021 March 8

16:42 Maureen Bannerman to take over as APM Terminals Bahrain new Managing Director
15:18 Kari Wilkinson takes the helm at Ingalls Shipbuilding as president
14:39 EPS, OCI, and MAN partner to adopt methanol and ammonia as marine fuel
13:56 USCG crew conducts 44 mile tow west of Sanibel Island
12:31 Valaris receives court approval of Chapter 11 plan of reorganization
11:52 AMSA: National float-free EPIRB inspection campaign delivers great results so far
10:31 MABUX: Bunker market this morning, Mar 08, 2021

2021 March 7

16:14 Vard Marine announces change in Vice President of Ottawa operations
14:27 VOS Singapore delivers MWV Falgout to end client
13:41 USCG concludes monitoring diesel fuel clean-up near Sitka, Alaska
12:53 Seaspan acquires two 15,000 TEU containerships on long-term charters
11:36 Trelleborg acquires leading supplier of composite hoses
10:54 Vard Marine secures a new contract for the design of an amphibious and military sea transport for the Chilean Navy Escotillón IV Program

2021 March 6

18:20 Philly Shipyard begins fabrication on second NSMV
15:08 e5 Lab establishes Marindows Inc.
13:27 New wood-chip carrier for Hokuetsu Corporation delivered
12:31 Saipem and the Norwegian company, Elkem, sign a feasibility study agreement for the decarbonisation business
11:43 TDI-Brooks International, Inc. completes two EBS programs offshore Angola
10:59 Torqeedo and Poseidon announce new, commercial-grade electric drive for passenger ferries.

2021 March 5

18:27 Logimatic signs contract with Hapag-Lloyd for implementation of SERTICA on more than 70 of the largest container vessels
17:39 Ilya Muromets icebreaker to participate in expedition of RF Navy’s Northern Fleet and Russian Geographical Society
17:01 Association of Lithuanian Stevedoring Companies appoints new President
16:37 Keel laying ceremony for ‘Green Jade’ was held at CSBC’s shipyard in Kaohsiung, Taiwan
15:44 Throughput of Port Vysotsky LLC in 2M’2021 fell by 2.1% Y-o-Y
15:22 Throughput of Taganrog port in 2M’2021 climbed by 7% Y-o-Y
14:56 Throughput of port Kavkaz in 2M’2021 rose by 70% Y-o-Y
14:47 IAA PortNews' greetings on the International Women's Day!
14:33 Krasnoye Sormovo to invest RUB 250 million in technical upgrading this year
14:15 HHI Group launches “Hydrogen Project” with Saudi Aramco
13:11 Eco-bonus for sustainable transport to and from the Stockholm region via Ports of Stockholm
12:48 Oboronlogistics to take part in preparation of Strategy for Development of Russia’s Shipbuilding Industry
12:32 ICTSI 2020 net income up 1% to US$101.8mln
12:26 Global Ports Investments announces its operational results and publishes its consolidated financial statements for 2020
12:01 EGS extends rail link Rotterdam-Bavaria
11:31 DNV advises PGE Baltica on setup of a joint venture structure to develop, build and operate two offshore wind plants in the Baltic Sea
11:01 LR completes purchase of C-MAP Commercial from Navico Group
10:45 Shipping company and chief officer convicted for dumping garbage in Great Barrier Reef
10:44 MABUX: Bunker market this morning, Mar 5, 2021
10:40 RS contributes to improvement of STCW audits
10:18 Solstad Offshore announces contracts awards for two subsea construction vessels
10:07 Aker Solutions awarded Åsgard B modification contract
09:44 Bunker prices are stale at the Port of Saint-Petersburg, Russia (graph)
09:27 Oil market sees steady growth of prices
09:10 Baltic Dry Index as of March 4

2021 March 4

18:31 Royal Doeksen takes over Vuyk Engineering Rotterdam from Royal IHC
18:11 A.P. Moller- Maersk to pioneer a first-ever block train from Japan to UK via Trans-Siberian railway
18:03 Bunker Weekly Outlook, Week 09, 2021
17:59 Torqeedo and Poseidon announce new, commercial-grade electric drive for passenger ferries
17:18 Rosmorport obtains approval of Glavgosexpertiza for dredging under project on construction of LNG terminal in Kamchatka
16:44 Nefteflot lays down two survey ships of Project RDB66.62
15:15 Global shipping CO2 emissions decreased 1% in 2020 - Marine Benchmark
14:32 BW Group and Miros launch fuel-saving, emissions-reducing JV
14:05 Zvezda Shipyard lays down seventh Aframax tanker, Academic Ivanter
13:32 IAA PortNews to hold webinar dedicated to Yenisey as one of Siberian waterways on March 17
13:01 APM Terminals Valencia assembles three new Rubber Tyred Gantry cranes
12:03 Expeditionary Survey Boat Hydrograaf named at Damen Shipyards Den Helder
11:46 Roadmap approved for reduction of coal industry’s environmental impact
11:03 DNV supports Hapag-Lloyd’s milestone green financing
10:29 Gazpromneft-Lubricants solidifies the cooperation with FESCO
10:17 DuPont awarded grant from Singapore’s National Water Agency to increase sustainability of desalination for clean water