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  • MABUX: Bunker Weekly Outlook, Week 15, 2023
  • 2023 April 13 15:42

    MABUX: Bunker Weekly Outlook, Week 15, 2023

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

    Over the Week 15, the global MABUX bunker indices did not show a firm trend and changed sideways. The 380 HSFO index rose by 9.64 USD from 501.68 USD/MT last week to 511.32 USD/MT, which is above the 500 USD mark. Similarly, the VLSFO index added 3.35 USD (654.96 USD/MT versus 651.61 USD/MT last week). The MGO index, on the contrary, experienced a decline of 10.28 USD to fall below 900 USD, reaching 891.04 USD/MT. Despite these changes, there was no clear or sustainable trend in the market at the time of writing.

    The Global Scrubber Spread (SS) - the difference between 380 HSFO and VLSFO - continued to decline during Week 15, falling by minus $6.29 to $143.64 from $149.93 in the previous week. The weekly average also decreased by $8.20. In Rotterdam, the SS Spread dropped by $15.00 to $112.00 (vs. $127.00 last week), coming close to the psychological $100 mark. The SS Spread weekly average in Rotterdam showed a decline of minus $22.67. Meanwhile, in Singapore, the 380 HSFO/VLSFO price difference remained at $120, with the weekly average losing $11.84. The data suggests that the SS Spread has the potential for further reduction next week, given the current market situation. More information is available in the "Differentials" section of www.mabux.com.

    LNG spot prices have come down 80% from their peak levels in 2022, but forecasts now expect prices to increase again, not only because of Asia, but also due to summer demand, as hydropower levels are set to drop. It could be the time for EU planners to start to hedge risk through long-term contracts again in order to avoid the negative consequences of another price shock.

    The price of LNG as bunker fuel in the port of Sines (Portugal) again moderately decreased and reached 1028 USD/MT on April 12 (minus 69 USD compared to the previous week). The difference in price between LNG and conventional fuel on April 12 was 168 USD: MGO LS in the port of Sines was quoted at 860 USD/MT that day. The price difference is gradually decreasing. We expect this trend to continue next week. More information is available in the LNG Bunkering section at www.mabux.com.

    Over the Week 15, the MDI index (correlation of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) registered an undervaluation of 380 HSFO fuel at all four selected ports. The weekly average showed a reduction at all ports except Fujairah, which was up by one point at minus $104. In Rotterdam, Singapore and Houston, the MDI showed minus $60, minus $49 and minus $34, respectively.

    In the VLSFO segment, according to MDI, underestimation of fuel was registered at all selected ports, including Houston, which was in the overestimation zone the previous week. The underprice ratios were as follows: Rotterdam - minus $46, Singapore - minus $20, Fujairah - minus $28 and Houston - minus 10. The undercharge weekly average for all ports increased moderately. This suggests that VLSFO prices may have been lower than the digital benchmark at these ports, indicating a possible buying opportunity for shipowners. However, it's important to note that the MDI is just one measure of the market, and other factors may be influencing prices and market trends as well.

    There are still three underpriced ports in the MGO LS segment: Rotterdam, Singapore and Houston. Average weekly undervaluation levels declined moderately to minus $59 in Rotterdam, minus $76 in Singapore and minus $27 in Houston. In contrast, Fujairah remains the only overvalued port - plus $ 157.

    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 International Maritime Organization (IMO) has discussed the ‘dangerous practice’ of ship-to-ship transfers in the open ocean and the methods used to obscure ship identities and turning off AIS transponders. According to a notice posted by IMO on Tuesday (4 April): ‘The IMO Legal Committee was informed that a fleet of between 300 and 600 tankers primarily comprised of older ships, including some not inspected recently, having substandard maintenance, unclear ownership and a severe lack of insurance, was currently operated as a “dark fleet” or “shadow fleet” to circumvent sanctions and high insurance costs.’ The Committee considered that this ‘increased the risk of oil spill or collision’ and ‘could also result in a participating shipowner evading its liability under the relevant liability and compensation treaties’. The IMO notice added that Committee considered that ship-to-ship transfers in the high seas were ‘high risk activities that undermined the international regime with respect to maritime safety, environmental protection and liability and compensation needed to be urgently addressed’.

    The bunker fuel market remains uncertain and subject to volatility, with various factors potentially impacting prices in the coming weeks. We do not expect drastic changes of bunker indices in near-term outlook.

    By Sergey Ivanov, Director, MABUX

2023 December 8

18:00 Norway’s largest zero-emission ferry launched in Turkey
17:06 VTTI and Höegh LNG sign agreement to jointly develop energy terminal in Zeeland, Netherlands
16:57 LASH Sevmorput to be replaced by a diesel-powered vessel next year, vessel operator says
16:35 ABB supplies world-first maritime megawatt charging system for Auckland Transport’s new electric ferries
16:13 ORNL, Caterpillar collaborate to advance methanol use in marine engines
15:27 MOL and Maersk issue joint statement on decarbonization in the shipping industry
14:55 Jiangnan Shipyard unveils design for the ‘world’s largest’ nuclear-powered containership
14:20 Avance Gas agrees to sell two newbuildings for $240 million at a $73 million estimated profit
13:45 Iran seizes two more vessels in Persian Gulf for 'fuel smuggling'
13:25 Pacific International Lines and DP World sign MOU to jointly develop green solutions for global supply chains
12:11 NYK secures time charter contract with SINOPEC for LNG transportation
11:43 Gunvor partners with ClearShift on zero carbon diesel and chemicals
11:15 Masdar signs Joint Study Agreement for supply of green hydrogen to the Port of Amsterdam
10:51 GTT enters into strategic cooperation agreement with the major Chinese ship-building group CSSC
10:24 Teck and Oldendorff to install Flettner Rotors system on the vessel Dietrich Oldendorf
09:53 Rosatom: Shipping on the Northern Sea Route does not have a negative impact on the Arctic environment
09:18 Hayfin to acquire up to $1bn of shipping assets through Maritime Yield strategy
08:25 Euronav orders 1 VLCC and 2 Suezmaxes

2023 December 7

18:02 Maersk to deploy first large methanol-enabled vessel on Asia - Europe trade lane
17:48 Hapag-Lloyd, Maersk and CMA CGM sign an agreement for alternative fuels with Nestlé
17:15 Ecomotus’ EcoPro fuel catalyst system awarded RINA’s approval
16:45 Adani Ports looks to buy SP Group's Gopalpur port in Odisha
16:24 Singapore and Tianjin sign MoU to establish the Singapore – Tianjin Green and Digital Shipping Corridor
15:54 Alfa Laval to provide the fuel supply system to Maersk in industry’s first methanol retrofit project for a container vessel
15:31 MABUX: Bunker Weekly Outlook, Week 49, 2023
15:14 COSCO signs contract with MAN for the methanol retrofit of four main engines from COSCO Line’s vessels
14:41 COSCO SHIPPING and bp sign MoU
14:22 Fluxys, OGE and Wintershall Dea sign a cooperation agreement for CO2 transport
13:52 ClassNK awards AiPs for SDARI’s three green fuels powered vehicle carriers
13:12 ABS publishes industry-leading best practices for ESG reporting
12:41 MOL and DP World sign MoU to explore auto logistics and decarbonization business opportunities
12:15 DEME and FARIA enter agreement to explore and co-develop offshore wind farms in Greece
11:52 Jan De Nul signs first two contracts with TenneT under 525 kV HVDC cable system frame cooperation
11:24 GTT receives an order from HD Hyundai Heavy Industries for the tank design of two new Very Large Ethane Carriers on behalf of the ship-owner Purus
11:13 Russian Far East shipyards’ backlog of orders hits three-year high, says Central Bank
10:51 Jiangnan Shipyard and Bureau Veritas sign a cooperation agreement on shipyard digitalization and 3D design reviews
10:29 Singapore, Norway and IMO unveiled LR's report at the Voyage to Net-Zero Forum

2023 December 6

18:02 NYK concludes time charter agreement for fuel ammonia transport
17:35 Japan’s Tsuneishi Shipbuilding orders 3 × MAN B&W 7G50ME-C9.6-LGIM main engines
17:19 LR awards CSBC Approval in Principle for methanol-fuelled 2,500 TEU feeder design
16:20 Maritime and Port Authority of Singapore, Port of Los Angeles and Port of Long Beach unveil Partnership Strategy on green and digital shipping corridor
15:59 ClassNK awards AiPs for SDARI’s green fuels powered vehicle carriers for ammonia ready LNG dual fueled
15:24 DNV awards AiP for world’s largest car carrier design by Сhina Merchants
14:45 Nuclear-powered container ship Sevmorput finalized the 2023 shipping season's short-sea voyages on the NSR
14:03 Fish product exports from Russia rose year-to-date by 13% to 2.1 million tonnes
13:42 World’s largest ammonia carriers for Naftomar Shipping to be built by Hanwha Ocean and classed by Bureau Veritas
13:22 Steerprop to deliver tunnel thrusters and retractable combi thrusters for Finnish Border Guards’ multi-purpose vessels
12:51 Fuel cell manufacturer Blue World Technologies closes financing round with Maersk Growth and EIFO
12:11 MOL and Bapco Energies sign MoU for development of cross border CO2 transport and sequestration
11:41 ABP invests £4.2 million in a new Liebherr LHM 420 mobile harbour crane for the Port of Hull
11:10 Sumitomo Corporation and Hoegh Autoliners sign LoI to collaborate on the supply of clean ammonia for upcoming Aurora Class PCTC vessels
10:47 ROSATOM successfully completes production of RITM 200 reactors for Project 22220 universal nuclear icebreakers
10:32 Seaspan enters new market segment with strategic order of new dual-fuel LNG Pure Car and Truck Carrier vessels
10:09 ERMA FIRST awarded AiP from DNV for onboard carbon capture system
09:35 KPI OceanConnect, Titan Clean Fuels, and SFL сollaborate on the company’s first LNG bunkering operation

2023 December 5

18:00 Kongsberg Maritime to provide design, engineering, and equipment on pair of methanol ready, chemical tankers for Sirius Rederi AB
17:38 APM Terminals and DP World launch Zero Emission Port Alliance at COP28
17:16 Blue Mediterranean Partnership to start operating in early 2024
16:49 Global Ports Holding announces integration of shore power at Valletta Cruise Port
16:14 Meratus Line starts calling at East Java Multipurpose Terminal
15:21 OOCL announces new China Indonesia Philippines services
14:42 CNC and COSCO sign vessel sharing agreement for KCS and China 1 services
14:23 Methanol-ready ECOaster vessel design wins DNV’s green light
13:52 DSIC lays keel for first CMES LNG carrier
13:12 Middle East War risk insurance rates edge up after surge in Red Sea ship attacks
12:45 Iberdrola and Masdar sign global alliance to co-invest up to €15 billion in offshore wind and green hydrogen projects in Germany, UK and the USA
12:15 South Korea drops to 2nd place in global shipbuilding orders in Nov.
11:41 Wartsila adds another four methanol engines to its portfolio
11:03 WinGD signs four-way partnership to deliver CMB.TECH ammonia engines
10:50 Maersk to invest more than USD$500 million in integrated supply chain capabilities in Southeast Asia