• 2024 May 17 09:58

    MABUX: Bunker Outlook, Week 20, 2024

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

    Over the Week 20, the MABUX global bunker indices continued modest decline. The 380 HSFO index decreased by 2.27 USD: from 546.81 USD/MT last week to 544.54 USD/MT. The VLSFO index dropped by 1.27 USD (658.35 USD/MT versus 659.62 USD/MT last week). The MGO index fell by 5.92 USD (from 846.30 USD/MT last week to 840.38 USD/MT). At the time of writing, there was a moderate upward correction observed in the global bunker market.

    The MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - showed a slight increase, reaching plus $1.00 ($113.81 versus $112.81 last week), still hovering close to the $100.00 mark (SS Breakeven), while the weekly average decreased by $2.31. In Rotterdam, SS Spread continued its decline: minus $2.00 (from $88.00 last week to 86.00), consistently below the $100 mark. The port's weekly average also dropped by $5.50. Conversely, in Singapore, the 380 HSFO/VLSFO price spread increased by $8.00 ($105.00 vs. $97.00 last week), once again surpassing the $100 mark, with the weekly average increasing by $2.67. Currently, there is no pronounced dynamics in SS Spread, while indicators in both ports are close to the SS breakeven mark. We expect irregular changes in SS Spread to persist next week. More information is available in the "Differentials" section of www.mabux.com.

    Forecasts indicate that prematurely phasing out cleaner and more economically advantageous natural gas could result in significant price fluctuations, triggering energy security and affordability challenges. This instability in prices may serve as an impetus to detach the energy infrastructure from unpredictable fuel markets, embrace renewable alternatives, and propel the energy transition forward. However, in the short run, volatility could impede progress. In week 20, the European gas benchmark TTF continued to decline, falling by 0.94 EUR/MWh (29.669 EUR/MWh versus 30.609 EUR/MWh last week).

    The price of LNG as bunker fuel at the port of Sines (Portugal) experienced a slight uptick, reaching 696 USD/MT on May 13, marking a rise of 9 USD compared to the previous week. Conversely, the price differential between LNG and conventional fuel decreased on May 13, now standing at 117 USD in favor of LNG (compared to 128 USD a week earlier). On that same day, MGO LS was listed at 813 USD/MT in the port of Sines. More information is available in the LNG Bunkering section of www.mabux.com.

    In Week 20, the MDI index (the ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) observed the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports remained in the undercharge zone. Weekly averages fell 5 points in Rotterdam and 3 points in Fujairah, while rising by 1 point in Singapore. The MDI index in Houston remained unchanged.

    In the VLSFO segment, according to the MDI, all ports were undervalued, with average weekly levels increasing by 1 point in Rotterdam and 3 points in Houston but decreasing by 3 points in both Singapore and Fujairah. Indices for Singapore and Fujairah remained closely aligned with the 100 percent correlation mark between market price and the MABUX digital benchmark.

    In the MGO LS segment, Houston remained the only overvalued port, with the weekly average falling by 10 points, and the index itself approaching 100% correlation between market price and the MABUX digital benchmark. All other ports were undervalued. Average weekly levels showed a further 4 points decline in Rotterdam and 7 points in Fujairah, but an 11 point increase in Singapore.

    At week's end, the balance of overvalued/undervalued ports across all market segments remained unchanged, with no steady trend in the dynamics of the MDI index.

    For more details on the correlation between market prices and the MABUX digital benchmark, visit the “Digital Bunker Prices” section on www.mabux.com.

    A recent study conducted by Chalmers University of Technology in Sweden has shed light on a concerning trend within the shipping industry. The research reveals that instead of opting for cleaner fuel options, many shipping companies are capitalizing on the financial benefits of using cheap heavy fuel oil. This decision comes with significant environmental consequences, as vessels equipped with scrubbers contribute to pollution levels equivalent to socio-economic costs surpassing €680 million between 2014 and 2022. The study further indicates that the majority of shipping firms that invested in scrubbers have already surpassed their break-even point, collectively accumulating a surplus of €4.7 billion by the conclusion of 2022 across approximately 3,800 vessels. Notably, over 95% of the commonly used open-loop scrubber systems are paid off within five years. In response to growing environmental concerns, Denmark has recently taken steps to prohibit the discharge of scrubber water within 12 nautical miles of its coastline. Similar measures have been adopted by several other countries, including Germany, France, Portugal, Turkey, and China. While Sweden currently lacks a comprehensive ban, certain ports such as the Port of Gothenburg have implemented restrictions on the discharge of scrubber water within their jurisdiction.

    We expect that the downward trend retains its potential in the global bunker market. Next week, global bunker indices may continue their moderate decline.

    By Sergey Ivanov, Director, MABUX

2024 June 19

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17:09 Vestas receives 577 MW order in Australia for second stage of the 1.3 GW Golden Plains wind project
16:37 Wintershall Dea makes discovery in Cuvette exploration well
16:07 Equinor expands renewables portfolio in Poland with a new solar plant
15:52 Shell signs agreement to acquire Pavilion Energy
15:19 LR releases its 3rd alternative fuels report concerning LPG as marine fuel
14:39 Greek-owned Liberian-flagged ship hit in Red Sea sinks
14:32 Samsung Heavy Industries unveils revolutionary K-PAW welding technology
13:51 DOF awards new Constructor Compact ROV systems contract to Kystdesign
13:47 Mitsubishi Shipbuilding receives orders for Japan's first methanol-fueled RORO cargo ships
13:28 Sirius Shipping to charter out its new tanker duo to Preem for transportation of renewable fuels, feedstock
12:39 Chartwell and Vard to advance new SOV design working with North Star
11:23 Wartsila launches world’s first large-scale 100% hydrogen-ready engine power plant
11:14 Industrial-scale floating green ammonia plant project enters next phase
10:06 ABP signs MOU with Marine Power Systems to advance floating offshore wind technology
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2024 June 18

18:13 Atlantic Towing and Svitzer modernise Halifax port fleet with new escort tugboats
17:38 Port of Long Beach sets $760 million annual budget
17:28 Unifeeder and MPC Container Ships announce a new collaboration to make joint investments into Energy Efficiency Technology
17:16 Port of Koper welcomes Astrid Maersk, the world’s second large green methanol-enabled vessel
16:43 Gasum plans a large-scale biogas plant in Sweden
16:15 GONDAN Shipbuilders secures 31-meters passenger catamaran contract from Líneas Romero
15:39 CMA CGM to strengthen its INDAMEX service connecting Indian Subcontinent with US East Coast
15:11 Maersk wins a heavy lift contract from Vestas
14:07 South Korea bolsters shipbuilding industry with $10.75 billion financial support
13:41 MOL joins SFC focused on decarbonizing international logistics
13:11 Fred. Olsen Cruise Lines joins the ISWAN
12:22 Carnival Corporation celebrates shore power launch at PortMiami after exceeding industry-leading milestone
11:45 Nel ASA set to become a fully dedicated electrolyser company
11:24 Temasek signs agreement to divest Pavilion Energy
11:13 IMO's NCSR agreeds pilot transfer arrangements and amendments to SOLAS regulation V/23
10:47 LR awards Quoceant an IECRE Feasibility Statement for the Q-Connect
10:31 DNV: Global grid infrastructure to double by 2050 to meet surging electricity demand
09:43 Tarntank orders tenth hybrid chemical tanker

2024 June 17

18:16 Philippine supply ship bumped Chinese ship
17:49 Survitec secures JMSDF submarine escape suit contract
17:36 First mega cruise ship built for short cruises delivered to Royal Caribbean
17:14 Petroleum chemical product carriers drive order performance of Korea shipbuilding industry
16:37 MPA: Joint oil spill clean-up operations advance to next phase
16:23 Greek shipowners start investing in large new ships to transport ammonia
15:42 BV awards AiP to Antwerp-based Seafar for its remote vessel operation technology
14:31 USACE continues maintenance dredging at Markland Locks
14:29 Green Marine UK partners with C-Power to advance autonomous offshore power systems
13:17 Van Oord releases statement concering collision Vox Maxima with bunker vessel
12:04 Green Marine and Ocean Kinetics form JV Partnership to decomission OpenHydro tidal turbine in Scotland
11:52 ClassNK releases 2nd Edition “FAQs on the FuelEU Maritime”
11:07 Allision of dredger Vox Maxima was caused by a sudden loss in engine and steering control, MPA investigation showed
10:28 Sweden-Belgium Green Shipping Corridor expands ambition for the world's first green ammonia shipping corridor and welcomes new partner
09:23 APM Terminals calls first movers to join Innovators Program to enhance visibility and reliability for customers
09:11 Georgia Ports Authority sees 22% container growth

2024 June 16

16:18 Diana Shipping Inc. announces time charter contract for m/v Myrsini with Cobelfret S.A.
15:16 MPA: Joint oil spill clean-up operations in Singapore continue
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14:07 Mammoet awarded construction upgrade of Hawaii dry dock
13:54 CMA CGM announces update on its IEX 2 service
12:31 Jan De Nul order first plug-in hybrid dredging vessel
10:26 Solstad announces contract extension for its CSV duo by Subsea 7

2024 June 15

14:15 VARD hosts a christening ceremony for third VARD 8 02 design stern trawler
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09:51 S&P Global: Guangdong province's market-based power subsidy supports gas demand growth

2024 June 14

18:09 Strategic R&D alliance formed to standardize materials for LH2 carriers
17:44 BSEE conducts first offshore wind turbine inspection
17:23 Aker Artic completes ice-going SOV concept for offshore wind farms
17:19 Orsted completes construction of combined wind and solar project in Texas
16:57 MPA: Oil spill clean-up in progress at Pasir Panjang Terminal
15:37 ADNOC awards $5.5 billion of contracts for Ruwais LNG plant
15:11 Allseas awarded Troll extension pipeline
14:26 Havila Shipping inks deals for its three PSVs with Equinor