• 2024 February 8 16:56

    MABUX: Bunker Weekly Outlook, Week 06, 2024

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

    Over the 6th week, the MABUX global bunker indices showed a moderate decline. The 380 HSFO index fell by 8.74 USD: from 516.18 USD/MT last week to 507.44 USD/MT, approaching the 500 USD mark. The VLSFO index, also decreased by 10.00 USD (664.71 USD/MT versus 674.71 USD/MT last week). The MGO index lost 9.56 USD (from 916.29 USD/MT last week to 906.73 USD/MT). At the time of writing, the market has shown a moderate upward correction.

    Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - experienced a slight decrease: minus $1.26 ($157.27 versus $158.53 last week. The weekly average, on the contrary, increased by $3.28. In Rotterdam, SS Spread significantly dropped by $45.00 (from $156.00 last week to 111.00), nearing the $100 mark (SS breakeven), while the weekly average increased by a symbolic $0.17. In Singapore, the price difference for 380 HSFO/VLSFO saw a less significant decrease of $13 ($185.00 versus $198.00 last week), breaking through the $200 mark during the week. The weekly average decreased by $1.34. Signs of a shift in the SS Spread trend towards reduction were observed during the week. More information is available in the “Differentials” section of www.mabux.com.

    Supplies of liquefied natural gas (LNG) into the EU's gas transportation system from terminals reached a three-month low in January, totaling 10.65 billion cubic meters. This marks a 6% decline compared to December figures and a similar 6% decrease compared to the same period in 2023. Selections from underground gas storage facilities (UGS) in 2024 take the lead among gas production sources in Europe, comprising 41%. LNG holds the second position with a 23% share, while supplies from the North Sea rank third at 19%. The East, including Russian gas, contributes 7.2%, North Africa provides 6%, and the UK accounts for just 2% of the overall gas supplies.

    The price of LNG as bunker fuel in the port of Sines (Portugal) showed a moderate increase and reached 672 USD/MT on February 5 (plus 54 USD compared to last week). At the same time, the difference in price between LNG and conventional fuel slightly narrowed on February 05, favoring LNG by 238 USD, compared to the 300 USD difference the previous week. On the same day, MGO LS was quoted at 910 USD/MT in the port of Sines. More information is available in the LNG Bunkering section of www.mabux.com.

    During week 06, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. the MABUX digital bunker benchmark (MABUX DBP Index)) recorded the following trends in four selected ports: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all four selected ports remained in the undervalued zone. The weekly average underpricing fell by 7 points in Rotterdam, 3 points in Singapore, 12 points in Fujairah and 9 points in Houston. The MDI index in Fujairah remains above the $100 mark.

    As for the VLSFO segment, according to MDI, three ports: Singapore, Fujairah and Houston were in the overcharge zone. Weekly average overprice premiums rose by 5 points in Singapore, 7 points in Fujairah and 36 points in Houston. Rotterdam remained the only undercharged port, with a weekly average undervaluation level decreasing by 16 points.

    In the MGO LS segment, Houston moved into the overvalued zone to be the only overpriced port in this bunker segment. Average weekly premium increased by 29 points. The other three selected ports remained underpriced. Average weekly underprice margins showed an increase in Rotterdam by 9 points, in Singapore by 1 point and in Fujairah by 10 points.

    The overall dynamics of the MDI index in major hubs continues to show irregular changes.

    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.

    DNV reported a robust month for alternative fuel orders, revealing that 23 methanol-fueled vessels were ordered in January. The container segment accounted for approximately 70% of these orders, while the remaining vessels were predominantly in the bulk and RoRo segments. Additionally, the database recorded the addition of 10 LNG-fueled ships, with car carriers and tankers dominating these orders, followed by RoPaxes. January saw a remarkable 24 LNG ship deliveries, marking a record for this segment, which has experienced significant growth in recent years, now totaling 493 LNG-fueled ships globally—a remarkable 100% increase compared to 2021. The methanol-fueled ship orderbook is expanding rapidly, currently standing at 228 confirmed orders. This surge in orders is anticipated to substantially augment the existing global fleet of 29 methanol-fueled ships in the coming years. Moreover, interest in ammonia as a fuel is gaining momentum, evidenced by the confirmation of two orders in January.

    It is anticipated that the world bunker indices have stabilized at current levels, with no firm trend expected in the market next week.

    By Sergey Ivanov, Director, MABUX




2024 February 23

12:06 BOEM approves construction and operations plan for empire wind’s offshore wind project
10:40 Clear early policy decisions needed to prevent the UK's energy transition stalling, says DNV

2024 February 22

18:04 United Maritime Corporation expands fleet with new bulk carrier
17:42 Euroseas reports Q4 and FY 2023 results
17:16 Scrubber savings up to 13 bln USD amid IMO2020 regulations implementation
16:14 HD Korea Shipbuilding secures 172.4 bln-won order for two LPG carriers
15:51 Baltic Sea Action Plan Fund allocates EUR 1 mln to 10 new environmental projects
15:24 The first Norsepower Rotor Sail funded by German Government to be fitted on Baltrader’s new cement carrier
14:45 HD Hyundai Marine Solution bags deal for LNG carrier re-liquefaction
14:13 Eastern Pacific Shipping partners with bound4blue for first wind-assisted propulsion system installation
13:42 Baker Hughes lands multi-year well construction services contract with Petrobras
13:32 MABUX: Bunker Weekly Outlook, Week 08, 2024
13:20 Unifeeder launches new direct service linking Aruba and Curaçao with Colombia
12:43 The use of Nextlogic at the Port of Rotterdam leads to a 20% reduction in port waiting times
12:21 Vitol Bunkers takes delivery of first biofuel barge in Asia
11:43 Galveston LNG Bunker Port joins SEA-LNG coalition
10:58 Liberian bulk carrier banned from Australian ports
07:39 Container shipper HMM receives an A- score from Carbon Disclosure Project

2024 February 21

18:00 SBM Offshore receives ExxonMobil Ruby Supplier Award for offshore operations
17:25 ZeroNorth and Alpha Ori Technologies close deal to form a new company
17:06 SeaLead and Blue Water Line launch Gulf India Express service
16:34 Auramarine signs agreement with Yiu Lian Dockyards and Guangzhou Jihai Shipping Material for the implementation and uptake of methanol dual fuel systems
16:12 VARO and Orim Energy to scale-up sustainable shipping fuel capabilities
15:34 Biden to sign executive order on US port cybersecurity
15:11 EDGE Group and Fincantieri form joint venture
14:57 Allseas completes infield pipelay scope for BP's GTA LNG project offshore Mauritania and Senegal
14:11 BYD to expand fleet with seven new car carriers by 2025
13:47 Hanwha Ocean sales jumped 52.4 percent on-year to 7.4 trillion won in 2023
13:24 Cavotec signs two-year service agreement with APM Terminals at Port of Tanger Med
12:19 Russian grain exports exceeded 66 million tonnes worth almost $16.5 billion in 2023
11:07 Gasunie and Storag sign agreement for large-scale hydrogen storage in Germany
10:58 Dual-fuel methanol design of offshore wind turbine installation vessel from Yantai receives ABS approval
10:29 NYK places first order with Japanese shipyard for offshore wind industry crew transfer vessel

2024 February 20

18:07 Armada Technologies announces contract with CoolCo for a hull air lubrication installation
17:40 AIDA Cruises launches the largest modernization program in its fleet
17:24 ROVOP partners with Boskalis to deliver integrated subsea solutions throughout the energy industry
16:35 Port of Rotterdam total cargo throughput down 6.1% to 438.8 million tonnes in 2023
15:36 EST-Floattech secures a €4 million investment from 5 investors
15:14 South Korea strengthens export restrictions on Russia and Belarus
14:41 Glander International Bunkering and Asyad Shipping partner for AI-driven sustainable shipping solutions
14:12 Danaos adds two methanol-ready container ships to fleet
13:58 Some stranded Russian Sokol oil cargoes begin to move to China, India
13:35 HD Korea Shipbuilding wins 322.8 bln-won order for 2 ammonia carriers
12:43 RINA approves performance prediction software for wind-assisted ships
10:55 Forth Ports orders two new pilot boats
10:29 HHLA's revenue fell by 8.3 percent to €1,447 million in 2023
09:45 Etihad Credit Insurance partners with DP World Trade Finance
07:51 CMA CGM announces PSS adjustments for shipments from Europe to India, Middle East Gulf, and Red Sea

2024 February 19

18:06 SafeΒulkers adds two more carriers
17:42 Piraeus Port shows resilience to the Red Sea crisis
17:23 Valenciaport container traffic up 11% to 388,366 TEU in Jan 2023
16:47 Sticky situation in UK port after grounded Ukrainian tanker leaked molasses
16:28 EU foreign ministers approve deployment of Red Sea naval mission
15:58 Eidesvik Offshore launches world’s first methanol-powered vessel for subsea and offshore wind
15:39 Equinor signs a 15-year LNG agreement with Deepak Fertilisers
14:23 Jumbo Offshore signs MoU with Sea Horizon Offshore
13:40 Texas LNG selects Gulf LNG Tugs to build, deliver and operate tugboats
13:38 Russian seaports’ January cargo volume fell 6.5% Y/Y to 71 million tonnes (expanded version)
13:22 Austal and Gotlandsbolaget sign MOU to construct a gas turbine powered high speed catamaran
12:56 Tellurian receives FERC extension for Driftwood LNG
12:01 Unifeeder completes agreement for two additional methanol-powered vessels
11:38 Chemship deploys wind assisted propulsion on Chemical Challenger
11:18 Topsoe signs an engineering agreement with Approtium to convert low-carbon ammonia into hydrogen using its H2RETAKETM technology
10:48 First cranes arrive as part of USD 300 million Port of Salalah expansion
10:13 Pavilion Energy concludes first ship-to-ship LNG bunkering operation to Rio Tinto in Singapore

2024 February 18

16:03 Australian Gov't improves safety for the offshore resources sector workforce, official says
14:51 TechnipFMC awarded substantial integrated EPCI contract for Sparta Project
13:17 Rongcheng Shipbuilding Industry kicks off A multi-functional piling ship for offshore photovoltaic
11:29 Sumitomo Heavy Industries to leave commercial shipbuilding industry
10:34 Containership rates up 300% due to attacks in the Red Sea