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  • MABUX: Bunker Weekly Outlook, Week 24, 2022
  • 2022 June 16 12:19

    MABUX: Bunker Weekly Outlook, Week 24, 2022

    We expect bunker prices to continue moving in different directions next week

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

    Over the Week 24, the world bunker indices did not have a firm trend and showed moderate irregular changes. The 380 HSFO index fell by 6.11 USD: from 766.23 USD/MT to 760.12 USD/MT. The VLSFO index, in turn, rose by 5.02 USD: from 1088.43 USD/MT to 1093.45 USD/MT, coming close to $ 2000 mark. The MGO index also showed a growth: plus 17.15 USD (from 1374.52 USD/MT to 1391.67 USD/MT) . The VLSFO and MGO indices are at their all-time highs.

    The Global Scrubber Spread (SS) weekly average – the price difference between 380 HSFO and VLSFO - continued its firm upward trend over the week – plus $ 32.06 ($ 332.26 versus $ 300.20 last week). In Rotterdam, the average SS Spread rose more significantly: $321.50 vs. $250.17 (up $71.33 from last week). In Singapore, the average weekly price difference of 380 HSFO/VLSFO also rose by $20 to over $500: $502.50 from $482.50 last week, but dropped back to $475 on June 15. For more information, see "Price Difference" on mabux.com.

    Natural gas prices in Europe have turned again into moderate growth. The price for LNG as bunker fuel in the port of Sines (Portugal) rose on June 14 by 171 USD to 1992 USD/MT (versus 1821 USD/MT a week earlier). LNG prices are still significantly higher than those of traditional bunker fuels: the price index for MGO LS in the port of Sines was quoted at 1508 USD/MT as of June 14. Meanwhile, the development of 25 LNG export terminal projects in the US could result in more than 90 million tonnes of greenhouse gas (GHG) emissions a year, according to US-based NGO the Environmental Integrity Project (EIP). In March 2022, America exported 7.6 million tonnes of LNG, quadruple the amount four years earlier.

    Over the week 24, the MDI index (comparison of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark)) continued to register an underestimation of 380 HSFO fuel in three ports out of four selected: Rotterdam - minus $ 14, Singapore - minus $ 94 and Fujairah - minus $3. The only overpriced port is Houston - plus $11. Underprice premium continued to rise slightly, while overcharge ratio declined.

    VLSFO fuel grade, according to MDI, remained overpriced at all four selected ports: plus $77 in Rotterdam, plus $198 in Singapore, plus $170 in Fujairah and plus $32 in Houston. Here, the MDI index had no a firm trend, increasing in Rotterdam and Fujairah, but declining in Singapore and Houston. VLSFO fuel remains the most overvalued segment in the global bunker market.

    As for MGO LS, over the week MDI registered an undercharge of this type of fuel in two ports out of four selected: in Rotterdam - minus $ 2 and in Singapore - minus $ 16. In other ports, the overcharge margins were: Fujairah - plus $ 137 and Houston - plus $27. Undercharge premium is gradually decreasing while overcharge one is going up.
    Thus, high volatility remains in the global market. There is still no any firm trend in the correlation of market and digital MABUX bunker prices benchmark (MDI).

    The 4,115,500 metric tonnes (mt) of marine fuel sold in Singapore in May was the highest monthly total of the year. Last month’s total represented a 1.1% increase on the 4,071,800 mt of bunkers sold in May 2021 and a 10.0% increase on the 3,742,300 mt registered in April.. During the first five months of the year a total of 19,162,900 mt of marine fuel was sold in the Port of Singapore – 9.4% down on the 21,150,700 mt of bunker sales in the corresponding period in 2021. The number of vessels calling for marine fuel at the global bunker hub rose from 3,025 in April to 3,168 in May.

    There is some stabilization of fuel indices registered in the market recently. We expect bunker prices to continue moving in different directions next week.

    By Sergey Ivanov, Director, MABUX

2022 September 27

18:21 Capital Cruising welcomes 100th cruise ship in Scotland this season with the arrival of the Emerald Princess
17:41 AD Ports Group’s SAFEEN Feeders signs long-term charter agreement with Saif Powertec
17:28 MOL signs 'Making Net-Zero Ammonia Possible' proposal from public-private partnership for decarbonization in which a WEF participates
17:18 Three companies conclude strategic partnership aimed at boosting ship fuel efficiency/reducing GHG emissions
16:59 Swedish Maritime Administration sends navigation warnings regarding leaks on Nord Stream 1 and 2 pipelines in the Baltic Sea
16:41 Felixstowe dock workers return to picket lines
16:13 SAFEEN Feeders and Invictus Investment sign strategic agreement to own and operate five dry-bulk vessels under a long-term contract
15:37 S.Korea's Hanwha Group to invest $1.4bln for Daewoo Shipbuilding - BusinessKorea
15:31 Universal bulk carrier Sparta starts operating on Ust-Luga - Kaliningrad line
15:13 Hoglund lands six repeat orders to supply integrated automation and control for VLECs at Jiangnan shipyard
14:24 DDW Offshore AS signs contract for “Skandi Atlantic”
13:59 Rosmorport rejects the only bid for construction of support fleet maintenance base in Ust-Luga
13:58 Signol and Clarksons partner with the ambition to reduce carbon emissions in global shipping
12:50 Freeport of Riga Authority to create single platform for digital transformation of multimodal cargo services in Latvia
11:44 Russian Railways offered 20.7-pct discount for container transportation from Far East ports
11:03 Dalian Shipbuilding holds naming ceremony for the vessel ‘T300K-100’
10:27 INPEX extends MOU on LNG supply to Indonesian domestic market
09:51 Huisman and Fred. Olsen 1848 present Floating Maintenance Solution
09:25 Crude oil futures rise after a fall at the previous session
09:13 Port of Long Beach offers funding for energy efficiency projects
08:57 MABUX: Firm downtrend to prevail in Global bunker market on Sep 27

2022 September 26

18:30 DNV lands 3-year contract in UK for safe use and conversion of pipelines to transport 100% hydrogen
18:07 Multi-million-pound rail investment at the Port of Southampton to enhance container offering
17:59 RF Government considers organization of regular ferry link with Turkey via Novorossiysk
17:51 Maersk increases its warehousing capabilities in UK and Ireland
17:35 MAN Energy Solutions and ABB to cooperate on dual-fuel electric propulsion concept for next-generation FSRUs and LNG carriers
17:25 IMO develops interim guidelines for using hydrogen and ammonia as marine fuel
17:13 TotalEnergies selected as QatarEnergy’s first partner in the North Field South LNG project
15:52 RF Transport Ministry calls on 20-pct reduction of stocking up at Far East container terminals
15:34 Canada and United Arab Emirates first to back maritime sector’s green fuel initiative
15:04 Alfa Laval and SSAB will support marine decarbonization with the first plate heat exchanger made using fossil-free steel
14:43 MSC adds a new call to its Himalaya Express Service to connect Jeddah Islamic Port with 10 global ports
14:14 DP World moves 10 millionth unit at London Gateway
14:03 IMO launches a new initiative to harmonize ballast water management procedures in Mediterranean Sea
13:36 Port of Oakland August volume drops 8 percent from August 2021
13:29 Hydrographic survey vessel Yakov Lapushkin to undergo tests at the delivery base
12:52 Maersk Drilling secures work for Maersk Viking offshore Malaysia into 2024
12:24 Austal Philippines launches the largest ferry constructed by an Austal Shipyard
11:46 Unifeeder and ABP start new weekly service Klaipeda-Immingham
11:35 The 1st Ship Repair, Modernization and Components Conference gathered about 1,000 in-person and online participants
11:07 Artemis Technologies unveils 100% electric passenger ferry
10:28 Bangladesh boat capsize kills 31 pilgrims - Australian Associated Press
09:56 CMA CGM announces Peak Season Surcharge for cargo from Europe to West Africa
09:54 Hydrographic Company’s new ship Aleksandr Parfyonov starts operation on Northern Sea Route
09:21 Crude oil futures fall below $85 per barrel
09:02 MABUX: Sharp decline of price indices is expected in Global Bunker market on Sep 26

2022 September 25

15:49 Companies from Riba-roja confirm the urgency of the new north container terminal at the Port of Valencia
13:27 Palantir Technologies and HHI Group grow partnership to +$45M with expansion into shipbuilding
12:33 DNV signs MOU with SIT to promote maritime decarbonization and digitalization
10:21 Gasunie raises the SDG flag

2022 September 24

15:03 Australia leads SAR exercises in the Indian Ocean
13:19 17 MOL Group-managed vessels earn commendations from Japan Coast Guard
12:33 Sea-LNG response to UCL report exploring methods for understanding stranded value: case study on LNG capable ships
10:38 coZEV unites 19 global brands for 2040 zero-carbon ocean shipping ambition

2022 September 23

18:30 Bergen welcomes 236 cruise ships and 300 000 passengers this season
18:07 Hurtigruten Norway launches its first hybrid ship, part of a EUR100 million green upgrade
17:34 Carbon Ridge secures $6 million investment
17:26 The National Fund of Greece receives two offers for the acquisition of 67% of two ports
17:04 Greek tanker hit by fire after leaving port of Ust-Luga - TradeWinds
16:40 Equinor and Poland’s PGNiG agree long term gas sales contract