• 2024 April 18 12:16

    MABUX: Bunker Outlook, Week 16, 2024

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    During Week 16, the MABUX global bunker indices showed mixed dynamics with no a clear trend. The 380 HSFO index rose by 2.83 USD: from 549.31 USD/MT last week to 552.14 USD/MT. The VLSFO index fell by 1.88 USD (694.83 USD/MT versus 696.71 USD/MT last week), consistently staying below the $700 mark. The MGO index decreased by 11.06 USD (from 906.48 USD/MT last week to 895.42 USD/MT), falling below the 900 USD mark. At the time of writing, there are signs of a downward trend in the global bunker market.

    MABUX Global Scrubber Spread (SS) – the price difference between 380 HSFO and VLSFO - decreased by $4.71 ($142.59 vs. $147.40 last week). At the same time, the weekly average showed a symbolic decrease of $0.26. In Rotterdam, SS Spread increased by $6.00 (from $119.00 last week to 125.00), maintaining above the $100.00 mark (SS Breakeven), with the weekly average up by $4.50. Conversely, in Singapore, the difference in the price of 380 HSFO/VLSFO, reduced by $7.00 ($138.00 versus $145.00 last week), with the weekly average down by $1.66. We expect continued uncertainty in the SS Spread dynamics for the upcoming week. More information is available in the "Differentials" section of mabux.com.

    European natural gas prices surged last week due to Russia's escalation of attacks on Ukrainian energy infrastructure. This retaliation followed a series of Ukrainian strikes on Russian oil refineries. Reuters estimates that these attacks have disrupted approximately 14% of Russia's total refining capacity. Washington has criticized these energy-focused attacks, expressing concerns that they could further elevate global oil prices. Additionally impacting European natural gas futures were reports of significantly reduced natural gas flows into the Freeport LNG export plant in Texas, attributed to problems with a liquefaction train.

    On April 15, the price of LNG as bunker fuel in the port of Sines, Portugal, rose to 730 USD/MT, marking an increase of 89 USD from the previous week. Concurrently, the price gap between LNG and conventional fuel narrowed to 165 USD in favor of LNG, down from 285 USD the previous week. On the same day, MGO LS was priced at 895 USD/MT in the port of Sines. For further details, refer to the LNG Bunkering section on www.mabux.com.

    In Week 16, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) highlighted the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports registered undercharging. Weekly averages rose by 7 points in Rotterdam and Houston, while decreasing by 4 points in Singapore and a significant 41 points in Fujairah, where the MDI index dropped below the $100 mark.

    In the VLSFO segment, all ports remained undervalued according to the MDI. Weekly averages rose by 1 point in Rotterdam and 8 points in Houston but declined by 1 point in Singapore and 5 points in Fujairah.

    In the MGO LS segment, Houston shifted to the overcharge zone, with the average weekly ratio increasing by 8 points. All other ports remained undervalued, with weekly levels declining by 21 points in Rotterdam and 25 points in Singapore. In Fujairah, the underprice rate rose by 17 points. Both Rotterdam and Singapore MDI indices fell below the $100 mark.

    By week's end, the balance between overvalued and undervalued ports in the 380 HSFO and VLSFO segments remained unchanged, while in the MGO LS segment, Houston emerged as the sole overpriced port amid overall undervaluation. We foresee minimal shifts in the MDI port index next week, with the prevailing trend of fuel underestimation persisting.

    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.

    Danish Shipping has announced its intention to comply with a ban on scrubber water discharge and has urged for strict enforcement. Following an agreement reached by a wide political consensus, ships navigating through Danish waters will no longer be permitted to discharge exhaust gas system wash water. This ban on scrubber water discharge will be enforced within Denmark's territorial sea, extending up to 12 nautical miles (approximately 22 km) from the coastline. The agreement also commits Denmark to advocate for similar bans in the Baltic Sea and North Sea through regional sea conventions HELCOM and OSPAR. The ban will be implemented in two phases: from 1 July 2025, for ships using scrubbers in open operation that discharge wash water directly into the sea, and from 1 July 2029, for ships employing scrubbers in closed operation.

    The Panama Canal Authority anticipates a return to normal transit capacity by next year, following a period of reduced capacity due to low water levels. This decrease in transits has been notable after Panama recorded its third-driest year on record in 2023. According to the authority, the canal has averaged 27 transits per day this year, a decline from the usual 36 transits per day during the rainy season.

    Next week, we anticipate continued market volatility with irregular shifts in bunker indices.

    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