• 2024 April 12 12:49

    MABUX: Bunker Outlook, Week 15, 2024.

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

    During Week 15, the MABUX global bunker indices experienced a marginal decline. The 380 HSFO index fell by 3.26 USD: from 553.99 USD/MT last week to 550.73 USD/MT. The VLSFO index decreased by 3.08 USD (696.00 USD/MT versus 699.08 USD/MT last week). The MGO index declined by a symbolic 0.30 USD (from 906.37 USD/MT last week to 906.07 USD/MT). At the time of writing, there was no clear trend in the global bunker market.

    MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - remained nearly static, edging up by a mere $0.18 to $145.27 from last week's $145.09. Meantime, the weekly average increased by $2.94. In Rotterdam, SS Spread expanded by $3.00 (from $117.00 last week to 120.00), consistently remaining above the $100.00 (SS Breakeven) threshold). The port's weekly average also added $5.83. Singapore witnessed a significant contraction in the 380 HSFO/VLSFO price difference, decreasing by $14.00 to $140.00 from last week's $154.00), breaking through the $150.00 mark, and the weekly average decreased by $9.00. We expect irregular changes in the SS Spread dynamics in the upcoming week. More information is available in the “Differentials” section of www.mabux.com.

    Europe has successfully navigated this winter season with unprecedented levels of natural gas in storage, positioning itself strongly for the upcoming winter. As of the end of March, which marks the conclusion of the typical winter period, European natural gas reserves stand at 58.7% capacity - a new milestone. This surpasses the previous record of 56% set last winter. Europe is now gearing up to replenish its natural gas stocks. However, there are indications that Europe might opt for reduced LNG imports this summer to accommodate weaker demand and moderate the rate of stock accumulation, preventing premature site filling. According to some projections, Europe could reach 90% storage capacity by early August if it maintains the filling rate observed last year.

    On April 08, the price of LNG as bunker fuel at the port of Sines, Portugal, dropped to 641 USD/MT, marking a decrease of 21 USD compared to the previous week. Concurrently, the price gap between LNG and conventional fuel widened on April 08, reaching 285 USD in favor of LNG, up from 263 USD the previous week. On that same day, MGO LS was priced at 926 USD/MT in the port of Sines. For further details, refer to the LNG Bunkering section on www.mabux.com.

    During Week 15, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. the MABUX digital bunker benchmark (MABUX DBP Index)) registered undercharging across major bunker fuels in the world's top four hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, underprice weekly averages widened by 6 points in Rotterdam, 5 points in Singapore, 9 points in Fujairah, and 19 points in Houston. The MDI index in Fujairah remained above the $100 mark.

    In the VLSFO segment, according to MDI, average weekly underpricing levels surged by 6 points in Rotterdam, 21 points in Singapore, 23 points in Fujairah, and 29 points in Houston.

    In the MGO LS segment, Houston shifted to the undercharge zone, marking all four ports undervalued. Weekly average increased by 10 points in Rotterdam, 10 points in Singapore, 29 points in Fujairah, and 9 points in Houston. MDI indices in Rotterdam and Singapore continued to surpass the $100 threshold.

    As Week 15 concluded, no overvalued ports were registered in any segments of the bunker market. The trend towards bunker fuel undervaluation is anticipated to persist next week.

    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.

    BIMCO has reported that ship recycling for bulkers, tankers, and container ships has declined to its lowest level in 20 years over the past two years. This is attributed to robust demand following multiple market shocks and a low order book, which have extended the operational lifespan of older vessels. In the first quarter of 2024, only two million deadweight tonnes (DWT) of ship capacity were recycled, marking the ninth consecutive quarter with recycling levels below three million DWT. The last time recycling remained at such low levels for an extended period was prior to the 2008 financial crisis. Given that the current fleet is significantly larger than it was before the financial crisis, the past eight quarters have seen the lowest recycling rates in two decades. On average, only 0.1% of the fleet has been recycled during this period, compared to an average of 0.45% over the past 20 years. The recent Red Sea situation was identified as the latest in a series of shocks that have increased demand for shipping. Despite the current slowdown in recycling, BIMCO anticipates a rebound in ship recycling in the coming years. Ships that would have been retired and recycled if rerouting around the Cape of Good Hope had not been necessary are expected to be recycled once the Red Sea situation is resolved. Consequently, BIMCO projects that between 2023 and 2033, more than twice as many ships will be recycled compared to the past decade.

    We expect the global bunker market to be dominated by irregular fluctuations with no clear trend in the coming week.

    By Sergey Ivanov, Director, MABUX




2024 July 26

18:00 LiqTech and Danbee Marine enter agreement for marine scrubber water treatment solutions for the South Korean market
17:23 Thecla Bodewes Shipyards successfully launches 7.280dwt vessel ‘Vertom Lisa’ for Vertom Group
16:57 MSC reaffirms pledges to avoid Arctic shipping route
16:23 Taiwanese ports resume bunkering after Typhoon Gaemi-induced suspension
15:41 Chinese ports container volume rises 8.5 % in the first half of a year 2024
15:17 Hanwha Ocean picked as preferred bidder for S. Korean Navy's logistics support ship
14:55 Vietnam's port system able to handle world's largest ships
14:36 Castor Maritime announces the acquisition of its first Ultramax vessel
14:12 Bunker price trends in the world's four largest hubs, July 22-28 – MABUX
13:30 Total Energies orders LNG bunkering vessels at Hudong Zhonghua
12:52 Philippines rushes to contain oil spill from sunken tanker
12:47 Bangladesh 'jam-packed' with cargo as curfew and internet restrictions continue
12:24 Helmerich & Payne announces agreement to acquire KCA Deutag
11:54 Two cruise ships were simultaneously bunkered with LNG at Port Canaveral
10:51 Associated British Ports announces new Chair
10:18 CMA CGM publishes Q2 2024 financial results

2024 July 25

18:00 Western sanctions and Houthi attacks boost appeal of Russia’s Arctic Sea Route - Bloomberg
17:46 Saudi Arabia imports fuel oil from Kuwait for first time in two years
17:24 Port of Thessaloniki implements the wireless reefer monitoring system
16:59 Hunan Jinhang Shipbuilding launches a 500m3 LNG bunkering pontoon
15:51 Chevron’s Taro Ultra advanced 40 granted LNG Validation status by WinGD
15:16 A Philippine-flagged tanker capsized off the coast of Bataan province, causing a spill
14:44 Cyan Renewables acquires Australian vessel operator MMA Offshore
14:23 Russia ships fuel to Bolivia as it increases Latin American sales - Reuters
13:59 Grimaldi-Minoan consortium acquires 67% of Heraklion Port Authority
13:12 Bumi Armada, Navigator Gas and Bluestreak CO2 announce MoU with Uniper for joint study on export of CO2 emissions from proposed UK carbon capture plant
12:52 ABS releases industry first advisory on ammonia bunkering
11:40 Drydocks World executes conversion and upgrade projects for FPSO and FSO vessels
11:10 EMA and MPA shortlist two consortia to further study viability of ammonia for power generation and bunkering
10:40 AW Shipping inks contract with CSSC Jiangnan Shipyard for the construction of two 93,000 cubic meters very large ammonia carriers
10:09 Corvus Energy Blue Whale ESS awarded RINA Type Approval
09:48 Opulent Maritime selects ADP Clear to digitize its bunkering operations

2024 July 24

18:00 MSC invests in multimodal terminal adjacent to Paris via MEDLOG
17:34 Frontera announces agreement between Puerto Bahia and GASCO to pursue LPG project in Cartagena, Colombia
17:00 Shipping firms respond to Houthi attacks in Red Sea
16:32 China’s shipbuilding output rises by 18.4% in H1 2024
16:04 The EU ETS to run the global tanker fleet more than €2bn by 2030
15:49 Typhoon Gaemi halts bunkering in Taiwanese ports
15:23 Container ship fleet expands by 11%, fastest growth in 15 years - BIMCO
14:55 MPC Container Ships takes delivery of final 5,500 TEU methanol-ready boxship from Korea
13:32 A methanol-powered cargo ship arrived in Estonia for the first time
13:13 Six feared dead and 14 rescued after fishing boat sinks off Falkland Islands
12:40 Wartsila to supply a hybrid-electric propulsion system for an 11,000 dwt Limestone Carrier
12:15 Rijeka Gateway adopts private 5G campus network
11:46 Valenciaport handled 2.7 million containers in H1 2024
11:24 Fincantieri signs order with Carnival Corporation for three mega-cruise ships
10:53 Energean takes FID for the Katlan development project in Israel
10:23 Australia announces three years’ worth offshore acreage for petroleum exploration and CCS
09:58 Valaris DS-17 to drill for the Raia project in Brazil

2024 July 23

18:00 Telemar to provide global safety support services to seven Ignazio Messina container vessels
17:27 KBR’s blue ammonia technology selected for Shell Blue Horizons project in Oman
17:16 The Federal Maritime Commission publishes final rule on unreasonable refusal to deal
16:42 Qatar Navigation and Qatar Steel sign a 5-year agreement to provide stevedore services
16:25 Spain detains cargo ship over fuel spill near Ceuta
15:23 The Indonesian company Pertamina adds Russian oil grades to its tender lists to buy September crude
14:58 Seatrium secures S$180 mln in repairs and upgrades projects
13:49 HD KSOE partners with UM to foster US ship engineers
13:24 IRGC seizes oil tanker smuggling fuel in Persian Gulf
11:25 ADNOC L&S joint venture awards $1.9bln contract to Chinese shipbuilder
10:59 Port of Valencia opens new combined transport terminal
10:24 NYK Bulkship installs NYK Group’s first wind-assisted ship-propulsion units
09:59 GTT entrusted by HD Hyundai Heavy Industries for the tank design of two new LNG carriers

2024 July 22

18:06 Manzhouli railway port handles 2,327 China-Europe freight train trips in 1st half of 2024
17:36 NORDEN to acquire Norlat Shipping to further grow projects and parcelling activities
17:23 2024 is expected to be a record year for cruises in the port of Heraklion
16:47 ABS and the U.S. Coast Guard Research and Development Center to collaborate on maritime technologies
15:56 Trafigura Group takes full ownership of High Heat Tankers
15:46 China delivers world’s first river-sea LNG bunker and transport vessel
14:51 Hartmann receives new LNG-powered LEG carrier
14:14 Jiangnan Shipyard supplies dual-fuel VLEC gas Huanghe