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  • MABUX: Bunker Weekly Outlook, Week 26, 2022
  • 2022 June 30 13:49

    MABUX: Bunker Weekly Outlook, Week 26, 2022

    High volatility to continue in the global market next week with irregular fluctuations in bunker fuel prices

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

    Over the Week 26, the world bunker indices did not have a firm trend and showed moderate irregular changes. The 380 HSFO index rose by a symbolic 0.26 USD: from 735.46 USD/MT to 735.72 USD/MT. The VLSFO index, in turn, went up by 6.84 USD: from 1063.02 USD/MT to 1069.86 USD/MT. The MGO index, on the contrary, dropped: minus 28.32 USD (from 1409.27 USD/MT to 1380.95 USD/MT), falling again below 1400 USD.

    The Global Scrubber Spread (SS) weekly average - the price difference between 380 HSFO and VLSFO - continued its slight upward trend over the week - plus $ 5.41 ($ 334.20 versus $ 328.78 last week). In Rotterdam, the average SS Spread rose more significantly: $307.00 vs. $290.33 (up $16.67 from last week). In Singapore, the average weekly price difference of 380 HSFO/VLSFO also rose by $16.33, close again to $500: $489.83 vs. $473.50 last week. For more information, please visit the Price Difference section on mabux.com.

    European benchmark gas prices jumped at the start of this week as Europe struggles to replace Russian gas losses to fill storage sites ahead of the winter. The price of LNG as bunker fuel in the port of Sines (Portugal) rose by 285 USD to 2963 USD/MT on June 27 (versus 2678 USD/MT a week earlier). LNG prices are still significantly higher than those of traditional bunker fuels, with the price of MGO LS at the port of Sines on June 27 being quoted at 1520 USD/MT.

    Over the week 26, 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 grade in three ports out of four selected: Rotterdam - minus $ 60, Singapore - minus $ 84 and Fujairah - minus $47. Houston remains the only overpriced port - plus $ 50. MDI index did not have any single trend in the HSFO segment: in Rotterdam and Fujairah, the underprice ratio rose, while in Singapore it decreased. In Houston, the overprice premium rose as well.

    VLSFO fuel grade, according to MDI, remained overpriced at all four selected ports: plus $61 in Rotterdam, plus $229 in Singapore, plus $250 in Fujairah and plus $73 in Houston. Overprice premium rose in all ports, with the exception of Rotterdam. VLSFO fuel grade remains the most overvalued segment in the global bunker market, with Singapore and Fujairah over $200 mark.

    As for MGO LS, over the week MDI registered an overcharge of this fuel in all selected ports: Rotterdam - plus $ 22, Singapore - plus $ 44, Fujairah - plus $ 147 and Houston - plus $ 49. Rotterdam and Singapore returned into the overcharge zone.

    There are no significant changes registered in the correlation of market and benchmark digital MABUX (MDI) prices while the state of high volatility remains in global bunker market.

    A shipping industry safety consortium has completed a collaborative study on the risks of future fuels which finds that of the four fuels reviewed, methanol poses the least overall risk across four defined categories, followed by LNG, hydrogen and ammonia. Methanol scored the lowest risk ratings within navigation-related scenarios, such as loss of manoeuvrability, excessive motions or a black-out at sea, as well as in scenarios related to ship operations (other than bunkering), notably cargo operations in case of damage to equipment or vent mast and crew changes during vessel handovers. Methanol also scored the lowest (that is, ‘broadly acceptable’) risk ranking in the external event scenario of hull breach from ship collision. However, within bunkering scenarios, such as leaks or loss of containment, LNG and hydrogen held ‘broadly acceptable’ risk scores. Besides, there are well established international regulations for the use of LNG as fuel on board ships, whereas for hydrogen, no such regulations or guidance are available for either its usage as fuel or storage in the marine environment. Ammonia scored ‘broadly acceptable’ risk as a potential source of ignition in the scenario of tug support or third-party vessel attendance at sea. However, some risks for ammonia as a fuel are classified as high (or ‘intolerable’) in navigation scenarios like grounding or collision leading to a hull breach, cargo operations in case of damage to equipment or vent mast, and leaks or loss of containment during bunkering.

    We expect high volatility to continue in the global market next week. Bunker fuel prices may demonstrate sharp irregular fluctuations.

    By Sergey Ivanov, Director, MABUX




2022 August 17

09:17 Crude oil futures rise after a fall at the previous session
08:55 MABUX: Global bunker prices to continue firm downward trend on Aug 17

2022 August 16

18:11 Viktor Chernomyrdin icebreaker officially received the status of a passenger ship
17:55 Sailing ship Mir takes on board second shift of cadets this year
17:36 Wan Hai Lines acquired four 3,000 TEU containerships from CSBC Corporation
17:06 Gulf Navigation seals refinancing deal for 5 petrochemical tankers
16:42 ABP appoints the lead for Port Talbot Transformation Programme
16:23 Port of Singapore bunker sales in 7M’2022 fell by 8.6% YoY
16:04 More than 500 workers of the port of Liverpool to strike over an ‘inadequate’ pay offer - Unite
15:38 Port of Singapore throughput in 7M’2022 fell by 3.7% to 339.1 million tonnes
15:14 Reefer container freight rates stabilise but to outpace dry box pricing - Drewry
15:04 A.P. Moller - Maersk to adopt Viking’s HydroPen container firefighting system
14:49 Port of Helsinki throughput in January-July 2022 rose by 8.4% YoY
14:30 Suez Canal Authority and Maersk sign bilateral cooperation agreement
14:20 GoodFuels’ Asia-Pacific branch starts sustainable biofuel deliveries with NYK as first client
14:03 Paxocean, Hong Lam Marine and Bureau Veritas sign Mou to develop ammonia bunker vessel design
13:31 Korea’s automobile exports top US$5bn in July - BusinessKorea
13:02 Ship travel passenger numbers in Helsinki late summer up to 80% of pre-COVID levels
12:38 Equinor extends contracts for AHTS’s in Norway and Brazil
12:37 Vladivostok Sea Fishing Port included into China’s list of Russian fishery products suppliers
12:01 Maersk and Castlery sign multi-year global logistics and fulfilment agreement
11:48 IAA PortNews to hold discussion on fish ports development and fish delivery logistics at Seafood Expo Russia
11:30 Steerprop to supply a complete propulsion package for first-of-its- kind wind installation vessel
11:01 Kalmar and Tropical Shipping strengthen long-term relationship with new order for straddle carriers
10:20 Eneti announces sale of shareholding in Scorpio Tankers
10:09 Ocean Network Express connects to CargoWise to enable automatic digital rate transfer
09:37 Freeport of Riga increased its cargo turnover in 7M’22 by 13.1% YoY
09:18 MABUX: Downward trend returns back to Global bunker market on Aug 16
09:14 Crude oil futures continue decreasing after a fall due to reduction of demand in China
09:13 Furetank and Algoma establish joint venture to construct four climate friendly dual-fuel product tankers

2022 August 15

18:26 Fujian MSA and Fishing Authorities announce the 1st batch of hgh risk warning areas of collision between merchant ships and fishing boats
18:06 Port digitisation project at APM Terminals Liberia set to improve efficiency and ease of doing business
17:55 Vladivostok Sea Fishing Port to convert one of its berth into container storage yard
17:26 King Abdulaziz Port in Dammam breaks container throughput record in June
17:06 Keppel O&M wins US$2.9bn newbuild FPSO P-80 contract from Petrobras
16:41 Zero-carbon fuel readiness on the rise but challenges remain - LR
16:20 Container throughput of Hong Kong port (China) in 7M’2022 fell by 4.3% to 8.65 million TEU
16:01 De-Kastri port to handle four ships loaded with oversize cargo for Amur Gas Chemical Complex in 2022
15:23 TECO2030 receives BWTS order
15:02 Greenpeace activists target Oldendorff vessel as part of ‘No new gas’ protest
14:23 Fishing vessel sinks off San Juan Island, oil sinks - U.S. Coast Guard
14:03 ZeroLab by Klaveness and South32 complete shipping emissions analysis
13:35 Nordic Engineering and Information & Analytical Center of State Commission for Arctic Development sign cooperation agreement
13:13 The Lower Parana Coast Guards revises speed regulations on Parana river
12:41 Alfa Laval FCM Methanol chosen as the fuel supply system for six methanol-fuelled container vessels
12:12 AMSA provides aerial support for catamaran
11:42 ONE adds Mombasa port call to MIM service
11:36 FESCO’s foreign trade cargo turnover via Far East ports rose by 19% to 131,000 TEU in H1’22
11:19 DEME’s next-generation vessel ‘Orion’ successfully installs the Fécamp offshore substation jacket and topside
10:49 Port of Tanjung Pelepas becomes first container terminal in Malaysia to surpass 1 mln TEUs a month
10:24 Waleid Gamal Eldien appointed as Chairman for Suez Canal Economic Zone
09:45 Far East Shipping Company (FESCO) reports 6-fold surge of its RAS net profit
09:17 Crude oil futures decrease with U.S. attempts to cap Russian oil prices
08:44 MABUX: Global bunker prices may change irregularly on Aug 15

2022 August 14

14:51 DEME’S next-generation vessel "Orion" successfully installs the Fécamp offshore sustation jacket and topside
13:18 USCG awards contract to expand East Tongue Point facilities
12:46 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade Holdings Inc.
09:47 Shell completes acquisition of renewables platform Sprng Energy group

2022 August 13

14:17 Golden Energy Offshore Services secures long-term contract in Caribbean
12:01 PortsToronto renews commitment to green electricity by renewing agreement with Bullfrog Power for all operations including Billy Bishop Toronto City Airport