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  • MABUX: Bunker Weekly Outlook, Week 19, 2022
  • 2022 May 12 12:51

    MABUX: Bunker Weekly Outlook, Week 19, 2022

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

    Over the Week 19, the global bunker indices showed a moderate decline. The 380 HSFO Index fell by 21.36 USD: from 744.06 USD/MT to 722.70 USD/MT. The VLSFO Index dropped by 23.23 USD: from 950.12 USD/MT to 926.89 USD/MT. The MGO Index also lost 21.64 USD (from 1298.43 USD/MT to 1276.79 USD/MT). The market still does not have a firm trend amid persistently high volatility.

    The Global Scrubber Spread (SS) weekly average - the price difference between 380 HSFO and VLSFO - unexpectedly increased over the week - for the first time in the last three weeks - plus $8.64 ($210.47 vs. $201.83 last week). At the same time, in Rotterdam, the SS Spread’s average value, on the contrary, showed a significant decrease, falling below $ 200: $ 184.83 versus $ 217.33 (minus $ 32.50 compared to last week). This is the first drop of SS Spread in Rotterdam in the last five weeks. In Singapore, the average price difference of 380 HSFO/VLSFO showed growth, exceeding again the psychological mark of $100: $121.83 vs. $94.67 (up $21.76 compared to last week). SS Spread values do not have any firm dynamics. More information is available in the Price Differences section of mabux.com.

    Gas prices in Europe remain at record levels amid the ongoing escalation of the conflict in Ukraine and concerns about the possible ban on Russian gas import. Price for LNG as bunker fuel in the port of Sines (Portugal) on May 09 was at the level of 2009 USD/MT. LNG prices are still significantly higher than those of traditional bunker fuels. The MGO LS price at the same port on May 09 was quoted at 1367 USD/MT.

    Over the Week 19, the average correlation trend of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark) did not change: all major bunker fuel grades are in the overcharge zone in all selected ports. Thus, 380 HSFO fuel’s overcharge margins in a week were: in Rotterdam - plus $ 29 (plus $ 40 at the end of the last week), in Singapore - plus $ 114 (plus $ 125), in Fujairah - plus $ 107 (plus $ 96) and in Houston, plus $102 (plus $115). In the 380 HSFO segment, MABUX MBP/DBP Index (MBI) did not have a single trend: in Rotterdam, Singapore and Houston, the overprice premium dropped, in Fujairah - rose.

    VLSFO fuel grade, according to MBI, was also overpriced at all selected ports: plus $42 (plus $99 a week earlier) in Rotterdam, plus $51 (plus $48) in Singapore, plus $66 (plus $58) in Fujairah and plus $50 (plus $99) in Houston. Here MBI also did not have a firm trend: the overcharge decreased in Rotterdam and Houston, and increased in Singapore and Fujairah.

    As for MGO LS, MBI also registered an overpricing of this type of fuel over the week in all four selected ports: Rotterdam - plus $ 75 (plus $ 116 a week earlier), Singapore - plus $ 26 (minus $ 27), Fujairah - plus $ 126 (plus $108) and Houston - plus $155 (plus $72). In MGO segment, MBI also changed irregular: growth in Rotterdam and Singapore, and decline in Fujairah and Houston.

    Brussels-based Transport & Environment (T&E) has detailed what it believes needs to be included in the FuelEU Maritime proposal to increase the uptake of green hydrogen in shipping. First of three recommendations: T&E called for a 6% mandate of green hydrogen-based fuel to be used in European Union shipping by 2030 under the draft FuelEU Maritime Regulation. In its second recommendation, T&E proposed to advance European Commission (EC)-proposed regulatory targets by five years and set 2050 as the sunset date for the last use of GHG emitting fuels. Finally, T&E called for the application of a multiplier of five to the use of green H2(-based fuels) in shipping under the FuelEU Maritime Regulation. ‘Multiplier functions like a “discount” system allowing the use of each tonne of green H2 (based fuels) count five times towards achieving the regulatory targets,’ explained T&E. ‘In practice, this helps to fully bridge the cost-gap between green H2 (based fuels) and fossil fuels.’Multipliers, said T&E, should only apply to volumes used above the sub-quota in order to provide additional incentives to shipowners/operators to switch to green H2-based fuels.

    We do not expect any firm trend in the global bunker market in the near-term outlook. Next week, bunker indices are likely to continue irregular fluctuations.

    By Sergey Ivanov, Director, MABUX

2022 May 20

18:15 Inland ports urge the true completion of the European Network
18:00 IAA PortNews’ summary of past week news
17:37 Port Kolomna holds keel-laying of Moskovsky-703 dredger, Project 4395
16:56 Gazpromneft Marine Bunker prolongs contract on operation of terminal in Saint-Petersburg port till 2027
16:05 Blue Tern to support jacket installation campaign on Neart na Goithe
15:51 RUSCON sent cargo to China via inland terminal in Nakhodka
15:29 DNV certifies first training platform provider Seably
14:24 USC is in talks with potential customers on construction of container ships
14:02 Port of Savannah moves nearly 500K TEUs in April 2022
13:59 RF Navy to take delivery of 20 warships in 2022 – Vice Prime Minister Yury Borisov
13:18 MOL holds joint public-private anti-piracy drill with LNG carrier 'LNG MARS'
12:54 Daewoo Shipbuilding сancels LNG сarrier order linked to Sovcomflot - The Maritime Executive
12:43 USC set to start serial production of components for ship propulsion units in 2024-2025
12:41 Russian oil producers start to book up an increasing number of tankers owned by Sovcomflot - Bloomberg
12:24 Corvus Energy sets up US battery factory to meet market demand for hybrid and zero-emission vessels
12:14 Wärtsilä extends leadership in hybrid vessel segment
11:52 GTT receives an order from Hyundai Samho Heavy Industries for the tank design of a new LNG carrier
10:55 Havyard Group ASA and HG Group AS merge to create a leading service provider
10:00 USC head forecasts increase of orders from defense industry
09:19 Crude oil futures decrease on possible rise of supplies to China
08:56 MABUX: Irregular changes to prevail in Global bunker market on May 20

2022 May 19

18:06 Valenciaport detects in April a decline in Spanish export activity
17:48 Border checkpoint opened at Ultramar terminal in Ust-Luga seaport
17:26 CIMC Raffles delivered the first of two record-breaking ships to Wallenius Sol
17:15 ClassNK certifies NAPA Fleet Intelligence and NAPA Performance Monitoring and Optimization, and adds new notations to ships
16:41 New zero-emission Côte d’Ivoire Terminal receives first port equipment
16:12 PortsToronto releases 2021 Audited Financial Statements
16:05 “K” Line Group’s Yokohama Daikoku C-4 Terminal starts operation utilizing renewable energy
15:38 OTEKO obtains ISO 9001 certificate for handling of dry bulk cargo
15:06 Port of Salalah commissions new equipment to increase efficiency and meet demand
14:13 The first ship equipped to utilize future fairway services tested at Port of Kokkola
13:49 Vladivostok Fish Terminal puts into operation refrigerating facility of 7,000 tonnes in capacity
13:02 Wärtsilä completes delivery of 15 LPG fuel supply systems
12:28 Development of programme for Ship Repair, Modernization and Components conference is underway
12:07 MABUX: Bunker Weekly Outlook, Week 20, 2022
12:03 Long-term rates for reefer containers on the key US West Coast to Far East route up 60% in April - Xeneta
11:50 H2-Industries set to clear the oceans of plastic waste and produce clean fuel from innovative ship design
11:32 EU policymakers still need more ambitious green measures - Danish Shipping
11:11 PortNews issues its annual analytical report “Civil Shipbuilding in Russia”
11:03 Ports Long Beach and Los Angeles give update on Clean Air Action Plan
10:36 Global Ship Lease announces new forward charter agreement
09:56 RS developed requirements on usage of alternative fuels
09:53 ZIM reports record financial results for Q1 2022
09:29 Russian oil exports in January-April 2022 declined by 0.6% to 66.3 million tonnes
09:13 Crude oil futures rise on US reserves reduction statistics
08:58 MABUX: Bunker prices may continue downward changes on May 19

2022 May 18

18:35 Jotun's new tool to forecast carbon intensity of vessel operations
17:56 Gasum considers that natural gas imports from Russia could end this week
17:20 RF Government to extend setting of quotas for exports of mineral fertilizers till December 2022
17:06 Port of Antwerp-Bruges & CMB.TECH prepare the first hydrogen-powered tugboat
16:18 Port of Hamburg container throughput up 1.8 percent to 2.2 million TEU in Q1 2022
16:05 Port Houston container volume up 21% to 334,493 TEUs in April 2022
15:18 EU regulators must recalibrate EU ETS reform to ensure shipping industry is green by 2050 - WSC
15:11 Container throughput of Russian ports in 4M’2022 totaled 1.7 million TEUs, down 5.4% YoY
14:48 Throughput of Russian seaports in 4M’2022 rose by 0.1% YoY
14:32 Fluxys and Gasunie join forces to connect Belgian and Dutch hydrogen networks at North Sea Port
14:13 UAE to build LNG plant to double its export capacity - Bloomberg
14:02 Bureau Veritas and Climate Neutral Commodity join forces
13:44 Subsidies for construction of crab catchers at Far East shipyards to be raised from 20% to 28%
13:23 ECSA welcomes European Parliament’s decisive vote on commercial operators and Ocean Fund