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  • MABUX: Bunker Weekly Outlook, Week 09, 2023
  • 2023 March 2 16:09

    MABUX: Bunker Weekly Outlook, Week 09, 2023

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

    Over the Week 09, MABUX global bunker indices did not have a firm trend and changed sideways. The 380 HSFO index decreased by 0.46 USD: from 477.44 USD/MT last week to 476.98 USD/MT. The VLSFO index, in turn, fell by 0.55 USD (665.96 USD/MT versus 666.51 USD/MT last week). The MGO index, on the contrary, showed an increase by 10.59 USD (from 938.57 USD/MT last week to 949.46 USD/MT). At the time of writing, irregular fluctuations prevailed in the Global bunker market.

    Global Scrubber Spread (SS) – the price differential between 380 HSFO and VLSFO - had no significant changes in a week 09 – minus $ 0.09 ($ 188.98 vs. $ 189.07 last week), being steadily below $ 200 mark. Meantime, the weekly average was down $13.52. In Rotterdam, SS Spread rose by $4.00 to $160.00 (vs. $156.00 last week), but the weekly average was down $19.00. In Singapore, the 380 HSFO/VLSFO price difference showed the most significant reduction: minus $12, dropping to $167. The weekly average fell by $32.17. We expect SS Spread to continue downward trend next week. More information is available in the "Differentials" section of www.mabux.com.

    Europe, previously reluctant to commit to long-term gas deals due to climate goals and emissions considerations, is now installing floating storage regasification units (FSRUs) to welcome LNG cargoes that are replacing Russian pipeline gas supply. The surge in LNG demand in Europe is set to intensify competition with Asia in the short term and dominate LNG trade in the longer term.

    The price of LNG as a bunker fuel at the port of Sines (Portugal) continued its moderate decline and reached 1062 USD/MT on February 28 (minus 20 USD compared to the previous week). The difference in price between LNG and conventional fuel on February 28 was 152 USD: MGO LS at the port of Sines was 910 USD/MT that day. The price difference continues to gradually decrease. We expect this trend to continue next week. More information is available in the “LNG Bunkering” section at www.mabux.com.

    Over the Week 09, the MDI index (correlation of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index) registered fuel 380 HSFO underestimated in all four selected ports. The average underestimation ratio continued to decrease and amounted to: in Rotterdam – minus $105, Singapore - minus $99, Fujairah – minus $122 and Houston – minus $62. The most significant narrowing of SS Spread was recorded at Fujairah - minus $30.

    In the VLSFO segment, according to MDI, the three selected ports – Rotterdam, Singapore and Fujairah – remain underpriced by minus $55, minus $18 and minus $20, respectively. The underestimation weekly average at all three ports increased moderately. Houston remained the only overvalued port in this fuel segment – plus $30, while the overpricing rate widened as well.

    There are three underestimated ports in the MGO LS segment: Rotterdam, Singapore and Houston. The weekly average underpricing premium widened moderately and amounted to minus $88, minus $88 and minus $61, respectively. Fujairah remained the only overvalued port - plus $174. The most significant change in this bunker fuel segment was an increase of the average undervaluation ratio at Houston by 19 points.

    More information on the correlation between market prices and MABUX digital benchmark is available in the “Digital Bunker Prices” section at www.mabux.com.

    The Port of Rotterdam has reported that while the war in Ukraine ‘led to unprecedented changes in goods flows last year’, the total throughput was down just 0.3% at 467.4 million tonnes. In the container sector throughput fell by 5.5% in TEUs – this was ‘mainly because container traffic to and from Russia came to a virtual standstill after the conflict in Ukraine’. Meanwhile imports of LNG, mainly from the USA, increased by 63.9% - and this was because Europe has been looking for alternatives to Russian gas. Summarising the outlook for the coming year, the Port Authority said that ‘the current geopolitical situation is a source of major uncertainty’, inflation has ‘risen sharply’ and the economy of the Netherlands and Europe are likely to ‘stagnate in 2023’. Consequently, the Port Authority expected that throughput volumes are to ‘decline slightly’.

    The global bunker market is in the phase of a sustainable trend formation. We expect the global bunker indices to remain rangebound next week.

    By Sergey Ivanov, Director, MABUX

2023 May 31

13:38 Carnival Corporation appoints Paul Ludlow as president Carnival UK and P&O Cruises in leadership change
13:16 New floating berth in the port of Taganrog to be ready for docking of the first passenger ship on July 2
12:19 BOEM completes environmental review of offshore wind leasing in the Gulf of Mexico
11:52 Nuclear-powered I/B Yamal escorted gas carrier Christophe de Margerie along eastern ice edge of Chukchi Sea
11:27 Saipem’s technology for digital monitoring of subsea pipelines during laying operations achieves DNV qualification
10:58 Modernization of missile cruiser Admiral Nakhimov to be completed by the end of 2024
10:35 TransContainer forecasts railway transportation of containers to grow by 8.7% this year
10:13 Nikolaus H. Schües elected BIMCO President
09:22 New types of domestically produced ship equipment to appear in the market from 2025

2023 May 30

18:10 Five Japanese companies to jointly develop a small-scale next-generation experimental floating axis wind turbine
17:46 HD Korea Shipbuilding bags 127 bln-won order for 2 product carriers
17:16 Port of Salalah retains position as world’s 2nd most efficient port
17:00 RF President signs law specifying procedure for multiple crossings of state border by Russian and foreign ships
16:42 The cruise division of MSC Group’s new flagship to sail world-first net zero greenhouse gas emissions cruise
16:25 Neste starts to use lower-emission marine fuel in two vessels transporting renewable diesel to Sweden
15:56 Singapore's second LNG bunker vessel completes inaugural loading
15:39 LPG exports from Russia are redirected under pressure of sanctions — experts
14:55 OOCL’s new 24,188 TEU container vessel named “OOCL Piraeus”
14:25 Holland Shipyards retrofits the first hydrogen-powered inland vessel in the world for Future Proof Shipping
13:58 Ports of Georgia handled 3.5 million tonnes of cargo in 1Q’23
13:12 WPCAP to be extended with a new focus on shore power, new fuels and green shipping corridors
12:57 Gromky corvette escorted Yevpaty Kolovrat icebreaker built for Pacific Fleet through straits of Malacca and Singapore
12:41 DP World and Standard Bank partner to expand trade finance in Africa
12:16 Port of Aberdeen explores subsea hydrogen storage at new South Harbour
11:42 Methanol Institute publishes first complete guide to methanol as a marine fuel
11:23 Norwegian software supplier Star Information Systems launches STAR Suite
10:59 Stena RoRo orders two hybrid cargo ships from the Chinese shipyard CMI Jinling
10:49 Rosmorport’s icebreakers completed navigation in the Northern Sea Route waters
09:55 Construction cost of deep-water port in Pionesky rises by RUB 1.6 billion
09:18 Fertoing supports I Hydrographic Conference as its General Sponsor

2023 May 29

18:07 Ascenz Marorka entrusted by JOVO to equip two LNG carriers
17:52 Kongsberg successfully completes autonomous operation of coastal cargo ship as part of EU’s AUTOSHIP project
17:48 Krasnoye Sormovo commences construction of second cruise ship of Karelia design
17:46 Port of Piraeus surpasses Valencia in container handling
17:24 Saudi diesel imports from Russia, exports to Singapore hit records - Reuters
17:19 Maersk was the most reliable top-14 carrier in April 2023
16:57 Göran Eriksson to become Gothenburg Port Authority CEO in August
16:25 TransContainer outbound shipments in 4M’23 increased by 3.5% YoY to 447 thousand TEUs
16:04 LR and Blue ESG join forces for a new project to develop a system for superyacht owners
15:44 Eni and RINA sign partnership to accelerate the energy transition and decarbonisation of maritime transport
15:04 Port of Oakland April container volume climbs second month in a row
14:46 Main engines loaded onto tanker Vasily Nikitin under construction at Nevsky Shipyard
14:30 BASF and Stolt Tankers introduce the low-water chemical tanker Stolt Ludwigshafen during ship christening ceremony
14:13 ICTSI to expand Manila flagship with new berth
13:25 The Port of Gothenburg signs sister port agreement with the Port of Shenzhen
13:02 CMA CGM posts Q1 2023 financial results
12:58 APM Terminals Bahrain set to become the region’s first fully solar energy-powered seaport
12:25 TotalEnergies renews the OML130 deep offshore license
11:43 Chinese companies to invest $ 687 million in the Sokhna Industrial Zone
11:23 ABS explores the future of shipping at the ABS Hellenic National Committee Meeting
10:58 MSC adds Dammam to Upper Gulf Express service
10:19 Mikhail Borovsky approved as General Director of Amur Shipyard
09:26 I/B Admiral Makarov escorted 59 vessels over the navigation season on the Northern Sea Route

2023 May 28

16:08 Automated gates preparing the port of Immingham for future growth
14:03 Reese McNeel appointed interim CEO of Prosafe SE
13:37 Vestas wins 37 MW EnVentus order in Turkey
11:43 EMGS reports first quarter 2023 results
11:19 Vineyard wind offshore substation heads for Massachusetts, USA
10:07 Jan De Nul announces 2022 a record-breaking year
09:52 Viking announces new expedition voyages in the Arctic