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  • MABUX: Bunker Weekly Outlook, Week 39, 2023
  • 2023 September 29 10:52

    MABUX: Bunker Weekly Outlook, Week 39, 2023

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

    Over the Week 39, the MABUX global bunker indices turned into a moderate decline for the first time in the last four weeks. The 380 HSFO index fell by 3.07 USD: from 586.14 USD/MT last week to 583.07 USD/MT. The VLSFO index, in turn, lost 6.22 USD (689.46 USD/MT versus 695.68 USD/MT last week). The MGO index fell by 11.86 USD (from 1025.01 USD/MT last week to 1013.15 USD/MT), still above the 1000 USD mark. At the time of writing, bunker indices have resumed an upward trend.

    Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - again showed a decrease of $3.15 ($106.39 vs. $109.54 last week), still hovering at the $100.00 mark (SS breakeven). Meanwhile, the weekly average increased slightly by $1.19. In Rotterdam, SS Spread dropped by $6.00 from $37.00 last week to $31.00. The average weekly SS Spread in Rotterdam, on the contrary, increased by $3.34. In Singapore, the price difference between 380 HSFO and VLSFO decreased by $6.00 ($133.00 versus $139.00 last week), while the weekly average rose by $15.50. We do not expect a sustainable trend in the SS Spread dynamics for the following week. More information is available in the “Differentials” section of www.mabux.com.

    Benchmark natural gas prices in Europe and the UK experienced an early drop following the resolution of a labor dispute between Chevron and trade unions, resulting in the cancellation of strikes at two significant LNG export facilities in Australia. European prices have been marked by substantial volatility in recent weeks, primarily attributed to the strikes in Australia and operational issues at major U.S. LNG export facilities. Additionally, European gas prices witnessed a decline as the substantial Troll gas field in Norway resumed production and began increasing its exports to Europe after an extended maintenance period.

    Nevertheless, the price of LNG as bunker fuel in the port of Sines (Portugal) surged, reaching 994 USD/MT on September 25 (plus 154 USD compared to the previous week). The difference in price between LNG and conventional fuel on September 25 decreased significantly: 58 USD in favor of LNG versus 214 USD a week earlier: MGO LS was quoted that day in the port of Sines at 1052 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    During Week 39, the MDI index (the ratio of market bunker prices (MABUX MBP Index) to the digital bunker benchmark MABUX (MABUX DBP Index)) recorded underpricing of all types of bunker fuels in the selected ports.

    Thus, in the 380 HSFO segment, the average weekly underpricing increased in all ports: by 13 points in Rotterdam, by 33 points in Singapore, by 19 points in Fujairah and by 3 points in Houston.

    For the VLSFO segment, according to the MDI, the average undervaluation index increased by 11 points in Rotterdam, 9 points in Singapore, 5 points in Fujairah and 12 points in Houston.

    In the MGO LS segment, the average underpricing premium increased in Rotterdam by 3 points and in Singapore by 13 points, but decreased in Fujairah by 3 points and in Houston by 12 points.

    Hence, the trend of undervaluation in the global bunker market continues. More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section of www.mabux.com.

    The International Energy Agency (IEA) said the world would not need any new long lead-time conventional oil and gas projects or coal mines approved after 2023 as the surge in clean energy deployment could lead to peak fossil fuel demand this decade. The new report, an update on the first such publication from 2021, takes into account the developments in the energy sector in the past two years, including the energy crisis, the conflict in Ukraine, the drive for energy security, and the surge in solar installations and electric vehicle sales. It is predicted, that in a net-zero (NZE) scenario, demand for oil and gas is set to decline by around 20% by 2030. However, the agency noted that investment in existing fossil fuel supply projects is still needed in the NZE Scenario “to ensure that supply does not fall faster than the decline in demand.” The IEA also warned that an “orderly” energy transition is far from certain, especially if fossil fuel investment falls faster than clean energy expansion catching up, or if low-cost resource holders decide to tap more oil and gas to boost their market share and influence fossil fuel prices by restricting production.  

    We expect that next week there will be no a sustainable trend in the global bunker market, while bunker prices will change irregular.

    By Sergey Ivanov, Director, MABUX

2023 December 10

15:27 ORNL, Caterpillar collaborate to advance methanol use in marine engines
14:32 Integr8 uncovers low viscosity in most off-spec flash point MGO samples
13:12 Philly Shipyard and TOTE Services hold a keel-laying ceremony for 4th of five training vessels
12:08 Neptun Werft starts construction of ten river cruise ships
11:17 India, the world's third biggest oil importer and consumer, emerged as the biggest buyer of Russian seaborne oil - Reuters
10:57 COSCO Shipping issues 100.000th electronic Bill of Lading

2023 December 9

16:41 Maersk adds emergency risk surcharge to Israel container shipments
14:33 BIMCO adopts portfolio of four ETS clauses
12:07 LBCT awarded for its investment in zero-emission technologies, cargo-handling efficiencies, and carbon-slashing strategies
10:17 Pacific Basin closes new US$150m 3-year sustainability-linked unsecured revolving credit facility

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