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  • MABUX: Bunker Weekly Outlook, Week 17, 2023
  • 2023 April 27 15:42

    MABUX: Bunker Weekly Outlook, Week 17, 2023

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

    During Week 17, the global MABUX bunker indices showed a consistent downward trend. The 380 HSFO index dropped by 8.51 USD, falling from 506.70 USD/MT last week to 498.19 USD/MT, breaking through the psychological threshold of 500 USD. Similarly, the VLSFO index also declined by 19.28 USD, going from 624.37 USD/MT to 643.55 USD/MT last week. The MGO index also experienced a decrease of 21.73 USD, dropping from 862.65 USD/MT to 840.92 USD/MT. As of the time of writing, the market continued to show downward momentum.

    In Week 17, the Global Scrubber Spread (SS), which represents the price difference between 380 HSFO and VLSFO, continued to decline, reaching minus $10.77 ($126.18 vs. $136.95 last week). The weekly average also decreased by $9.82. In Rotterdam, the SS Spread dropped below the $100 mark, hitting $87.00 USD within a week for the first time since October 21, 2021. It is considered that SS Spread below $ 100 makes the use of scrubbers low profitable. The weekly average of SS Spread in Rotterdam also decreased by $14.17. In Singapore, the price difference between 380 HSFO and VLSFO decreased by $4.00 by the end of the week ($122 vs. $126.00 last week), and the average weekly value saw a minimal decrease of $0.50. It is expected that SS Spread may further reduce next week, indicating a trend of balancing in the bunker market. For more information, refer to the “Differentials” section at www.mabux.com.

    Global inventories of liquefied natural gas have increased this month driven by weaker demand, while demand is about to recover in the summer. At 550,000 ton as of April 20, LNG in floating storage around the world is almost twice as much as it was this time last year. The increase in inventories is driven chiefly by lower demand from the three biggest LNG importers in the world: China, Japan, and South Korea. China cautioned that the outlook on the country’s LNG demand this year was uncertain, even though gas demand as a whole was seen rising. Japan, meanwhile, is looking for long-term supply and as part of efforts to secure that. In South Korea, a reconsideration of nuclear energy is threatening long-term demand for LNG.

    The price of LNG as bunker fuel in the port of Rotterdam continued to decrease, reaching 830 USD/MT on April 25 (minus 6 USD compared to the previous week). The price difference between LNG and conventional fuel also narrowed to 103 USD on April 25, with MGO LS in the port of Rotterdam quoted at 727 USD/MT on that day. We expect that the price difference will further narrow in the upcoming week. For more information, refer to the LNG Bunkering section on mabux.com.

    During Week 17, the MDI index, which reflects the correlation between MABUX market bunker prices (MBP Index) and the MABUX digital bunker benchmark (DBP Index), recorded an underpricing of 380 HSFO at all four selected ports. The average weekly undervaluation ratio showed a slight reduction (minus $2 and minus $8) in Rotterdam and Fujairah. In Singapore, the MDI rose by $1, while in Houston, it remained unchanged.

    In the VLSFO segment, according to MDI, fuel also remained undervalued in all selected ports. Underprice levels remained virtually unchanged in all ports except for Houston, where the MDI showed a 6-point decline.  

    In the MGO LS segment, three ports are still underestimated: Rotterdam, Singapore and Houston. The average weekly undervaluation premium decreased in Rotterdam and Singapore by minus 2 and minus 5 points, respectively, but rose by 20 points in Houston. Fujairah remains the only overvalued port.

    For more detailed information on the correlation between market prices and the MABUX digital bunker benchmark, you can refer to the "Digital Bunker Prices" section at www.mabux.com. The section is likely to provide additional insights, data, and analysis on bunker fuel prices and their correlation with the digital benchmark.

    The European Parliament voted April 18 to include GHG emissions from shipping in the EU Emissions Trading System (ETS), which will mean that at least 20 million ETS allowances – equating to some €2 billion according to the current ETS carbon price – will be channelled into maritime decarbonisation initiatives under the Innovation Fund. The inclusion of shipping in the EU ETS was voted through by 500 votes to 131, with 11 abstentions. The Port of Rotterdam voiced its support of this new legislation, which is part of the EU’s Fit for 55 basket of measures, but at the same time it called for more robust action against any evasion of the ETS. The European Community Shipowners’ Associations (ECSA) also welcomed the passing of the EU ETS legislation, including the allocation of some of its revenue for maritime projects. ECSA also welcomed the upholding of the ‘polluter-pays principle’ through mandatory requirements for the pass-through of the EU ETS costs to the commercial operators of vessels. The organisation noted its support of the inclusion of offshore renewable technologies and carbon capture and storage in the list of strategic net-zero technologies. However renewable fuels of non-biological origin (RFNBOs) should be included in the Act, so that dedicated production capacity can be swiftly developed.

    The global bunker market is currently experiencing a moderate downtrend. In the absence of clear drivers, it is anticipated that this trend will persist in the coming week.

    By Sergey Ivanov, Director, MABUX

2023 December 8

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
10:24 Hapag-Lloyd to apply a war risk surcharge from January 1, 2024
08:17 EU announces €175m financial support to reduce methane emissions at COP28
07:34 AD Ports Group and Vietnam Maritime Administration sign MoU to enhance ports and maritime collaboration

2023 December 4

18:53 St. Petersburg SMTU kicks off real technical revamp of high-tech industries under the Priority 2030 program
18:07 ABP unlocks a 200+ acre development opportunity at the UK’s busiest ports complex
17:34 The Government of Oman, Hydrom, Port of Amsterdam, Zenith Energy Terminals and GasLog agree to study the development of a liquid hydrogen supply chain
17:13 Meyer Turku shipyard delivers the cruise ship Carnival Celebration
16:45 Three commercial vessels attacked in Red Sea
16:24 AD Ports Group and KazMunayGas sign HoT for ship building and repair facility in Kazakhstan
15:14 Bureau Veritas and Avance Labs sign MoU on hydrogen certification