• 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 May 18

15:24 SNAM's Q1 total revenues declined 1.9% to 895 million euros
14:17 KOTUG Int'l successfully pilots Tug Drone technology
12:04 Austal USA names Mark Santamaria as CFO
11:36 Silver Ships delivers four of seven coastal fast response boats
09:51 CMA CGM posts revenue of 11.8 billion for Q1 2024

2024 May 17

18:10 Bunker fuel sales at the Middle Eastern hub of Fujairah drop on a monthly basis in April 2024
17:52 Lloyd’s Register and Shandong Marine Group sign MoU
16:43 China reveals cooperation methods to protect and restore the Yangtze River
16:03 APM Terminals Barcelona holds the commissioning of 17 Konecranes NSC 644 EHY hybrid straddle carriers
15:13 Marine fuel demand in Panama declined in April 2024
14:43 MITSUI E&S and PACECO commence commercial operations of world's first hydrogen fuel cell zero emission RTG crane at Port of Los Angeles
14:23 ILWU Canada agrees to delay serving 72-hour strike notice on employer DP World Canada
13:31 Barge hits a bridge in Texas, damaging the structure and causing an oil spill
13:10 Container shipping costs on EU-S. Korea route surge over 30 pct amid Red Sea crisis
12:43 DP World invests €130m in Romania
12:21 Astrakhan hosts Russia-Iran talks on shipping cooperation on International North-South corridor
11:41 Seatrium awarded repeat FPSO integration contract from SBM Offshore
11:04 Bureau Veritas report highlights the potential of carbon capture technologies and the development of carbon value chains for shipping
10:41 Electramar christened in Helsinki
10:07 IMO Secretary-General spotlights seafarer safety amidst ongoing Red Sea attacks and resurging piracy
09:58 MABUX: Bunker Outlook, Week 20, 2024

2024 May 16

18:11 Kongsberg and Torghatten to develop self-driving ferry service linking Trondheim and the Fosen peninsula
17:42 “K” Line сonducts first trial use of B100 biofuel for carbon-free operations on car carrier
16:35 Deltamarin and ECOLOG unveil LP LCO2 carrier design
15:40 Seadrill enters agreement to sell its Qatar jack-up fleet
15:24 Scan Global Logistics and Hapag-Lloyd enter into major biofuel agreement in a new Green Collaboration
14:48 Edison Chouest feeder fleet for U.S. offshore wind market to be built to ABS Class
14:03 The Australian Government announces a funding package of $7.1 billion for budgeted programs to be administered by ARENA
13:54 The share of the idle container vessel fleet was 0.9% in April - Sea-Intelligence
13:25 The European Commission grants PCI status to CO2 value chain project developed by MOL with partners
12:14 HHLA's revenue decreased by 0.3 percent to € 363.6 millions in Q1 2024
11:42 MOL and TotalEnergies sign time charter contracts for 2 newbuilding LPG-fueled LPG carriers
10:40 Kalmar and Uniport Livorno agree on new terminal tractor order to enhance reliability, safety and service quality at Italian terminal
10:04 AMSA collaborates on a trial providing more recycling options for visiting foreign ships
09:59 SunGas Renewables and C2X announce strategic partnership

2024 May 15

18:07 MOL holds naming ceremony for newbuilding LNG carrier Greenergy Ocean to serve China National Offshore Oil Corporation
17:30 ClassNK and StormGeo mark significant collaboration to advance maritime decarbonization
17:02 Newly certified methanol valves to improve dual-fuel shipbuilding
16:45 HD KSOE to lease Subic shipyard in Philippines
16:25 Eidsvaag receives two forage carrier vessels designed and equipped by Kongsberg Maritime
15:58 ADNOC delivers first ever bulk shipment of CCS-enabled certified low-carbon ammonia to Japan
15:35 World's 1st wind challenger-equipped coal carrier achieves fuel savings of 17%
14:57 LR to support the retrofit of two Stena Line ferries to methanol
13:52 Port of Los Angeles nets record $58 million for harbor maintenance
13:32 CMA CGM to launch MCX - West Coast Central America
12:51 Port of Long Beach cargo volumes up 14.4% in April
12:21 First Ro-Pax vessel receives DNV Silent notation following successful sea trials with Wartsila propellers
11:41 Hapag-Lloyd transport volumes increased by 6.8 percent to 3 million TEU in Q1 2024
11:10 Cavotec signs two-year service agreement with Port of Salalah
10:41 China overtakes Korea in global shipbuilding competitiveness
09:58 The ports of Rotterdam and Delft join the CLARION project

2024 May 14

18:02 ICTSI to invest in new Southern Luzon gateway
17:31 ACL, BG Freight Line and Peel Ports Group start container service between Ireland and North America
17:10 Port of Hamburg is the first port in Europe to offer shore power for both container and cruise ships
16:31 Port of Gothenburg launches the platform "Digital Port Call"
16:18 NS United, NSY, Imabari Shipbuilding and Japan Marine United Corporation sign MOU for the construction of Cape-size bulk carriers using dual methanol fuel
15:56 Port of Antwerp-Bruges launches the world's first methanol-powered tugboat
15:29 The Ports of Barcelona and Shanghai will work together on innovation and decarbonisation projects
13:55 AD Ports Group announces Q1 results
12:58 NYK, NBP, TSUNEISHI SHIPBUILDING and Drax sign MOU to develop ‘bioship’ technology and plans to construct the world’s first biomass-fuelled ship
11:30 Maris Fiducia team up with HAV Hydrogen, Norwegian Hydrogen and Ankerbeer for zero emission bulk shipping
11:05 ABS and HD Hyundai Group sign MOU to advance medium-voltage power systems on ships
10:43 Finnlines’ new freight-passenger Superstar-class vessel Finnsirius awarded by Shippax
10:23 Kongsberg Maritime to design and equip two new salmon farm forage carrier vessels for Norwegian coastal cargo carrier Eidsvaag AS
09:48 Yara International and Kongsberg Digital enter collaboration on digital twin technology

2024 May 13

18:00 Capital dredging commences for Lowestoft Eastern Energy Facility
17:06 Berlin’s oldest passenger vessel enters a new green era powered by Torqeedo
16:22 Russia’s seaborne diesel trading partners shifted after Feb 2023 sanctions
16:18 Denis Manturov: Russian shipyards to deliver more than 110 civil ships this year
16:05 CMA CGM and China’s Contemporary Amperex Technology plan to set up joint venture