• 2024 May 23 13:18

    MABUX: Bunker Outlook, Week 21, 2024

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

    In Week 21, the MABUX global bunker indices showed irregular changes with no clear trend. The 380 HSFO index decreased by a symbolic 0.13 USD: from 544.26 USD/MT last week to 544.13 USD/MT. The VLSFO index fell by 2.53 USD (654.27 USD/MT versus 656.80 USD/MT last week). The MGO index, on the contrary, increased by 3.63 USD (from 838.55 USD/MT last week to 842.18 USD/MT). At the time of writing, a steady downward trend was observed in the global bunker market.

    The MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - returned to a moderate decline: minus $2.40 ($110.14 versus $112.56 last week), gradually approaching the $100.00 mark (SS Breakeven). The weekly average also fell by $0.95. In Rotterdam, SS Spread, on the contrary, showed growth: plus $8.00 (from $86.00 last week to 94.00), also gradually rising to the $100.00 mark. The port's weekly average rose by $1.17. In Singapore, the 380 HSFO/VLSFO price differential narrowed unexpectedly to minus $19.00 ($85.00 versus last week's $104.00), falling below $100, with the weekly average down $5.67. Thus, the dynamics of the SS Spread still lack pronounced dynamics. In the near future, we expect a further reduction in SS Spread to levels below $100 SS Breakeven. More information is available in the "Differentials" section of www.mabux.com.

    In April 2024, worldwide LNG imports reached a record high of 34.52 million metric tons (Mt), marking a 1.7% increase (0.58 Mt) year-on-year. The Asia Pacific and LAC regions spearheaded this surge, compensating for a significant downturn in European LNG imports. From January to April 2024, global LNG imports grew by 2.9% (3.98 Mt) year-on-year, totaling 142.52 Mt. During Week 21, the European gas benchmark TTF continued its moderate growth, adding 3.335 EUR/MWh (33.004 EUR/MWh versus 29.669 EUR/MWh last week).

    The price of LNG as bunker fuel in the port of Sines (Portugal) continued its upward trend, reaching 728 USD/MT on May 20, an increase of 32 USD compared to last week. Simultaneously, the price difference between LNG and conventional fuel on May 20 decreased to 89 USD in favor of LNG, down from 117 USD the previous week. On that day, MGO LS was quoted in the port of Sines at 817 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    In Week 21, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) registered the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports were in the undercharge zone. Weekly averages fell 3 points in Singapore and 2 points in Fujairah but rose 5 points in Houston. The MDI index in Rotterdam remained changed.

    In the VLSFO segment, according to the MDI, all ports remained undervalued, with average weekly levels showing an increase of 4 points in Singapore and 3 points in Houston, and a decrease of 2 points in Rotterdam and 1 point in Fujairah. Fujairah's indices remained at 100 percent correlation between the market price and the MABUX digital benchmark.

    In the MGO LS segment, Houston was the only overvalued port, with the weekly average rising 2 points, while the index remained near the 100 percent correlation mark between market price and the MABUX digital benchmark. All other ports were undervalued. Average weekly margins showed a further 6-point decline in Rotterdam, but an increase of 5 points in Singapore and 2 points in Fujairah. The MDI index in Singapore exceeded the $100 mark again.

    At the end of the week, the balance of overvalued/undervalued ports in all market segments did not change, while underpricing remained the prevailing trend.

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

    JLC reported, that in April, Chinese refiners produced approximately 1.2 million metric tons (mt) of Very Low Sulfur Fuel Oil (VLSFO), a decrease from the 1.4 million mt produced in March. This represents a 9% decline in the daily average VLSFO output, down to 41,000 mt/day. The reduction in VLSFO production is attributed to increased seasonal maintenance activities at refineries. Consequently, this has led to a constrained supply of VLSFO for bunkering in Zhoushan, a major Chinese port, with suppliers suggesting lead times of 5-7 days due to the lower output and limited barge availability. To support future VLSFO production, the Chinese government has issued 4 million mt in export quotas for bonded bunkering, as part of the second allocation round for the year. These new export quotas are anticipated to enhance VLSFO output later in the year.

    We expect downward trend to prevail in the global bunker market next week.

    By Sergey Ivanov, Director, MABUX

2024 June 15

14:15 VARD hosts a christening ceremony for third VARD 8 02 design stern trawler
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10:06 The 3rd of 12 plug-in hybrid vessel joins Swedish shortsea operator's fleet
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
14:03 LR partners with COFCO International on fleet emissions reduction programme
13:18 Bulk carriers second-hand market overperforms
12:53 CMA CGM announces PSS from Spain (Med) to West Coast South America, Central America & the Caribbean
12:00 QatarEnergy enters 10-year naphtha supply agreement with India's HPL
11:46 ABS releases new notation that enables vessel operators to carry an additional tier of containers
11:33 Holland Shipyards announces successful convertion of an inland vessel into dredger
11:17 DNV joins technical cooperation programme for medical devices (TCP III)
10:42 TES and “K” LINE partner for sustainable maritime shipping solutions
10:11 CMA CGM announces Peak Season Surcharge for Middle East Gulf & Pakistan-West Africa trade
09:48 MOL and INDU establish JV with for self-operated warehouses in JAFZA Dubai

2024 June 13

18:07 Jan De Nul and partners start AquaForest project for construction of mangrove island in Ecuador
17:31 UECC: Biofuels boost puts the leading European shortsea carrier on course to beat emissions reduction target
17:23 MacGregor secures crane order for MMA Offshore
16:40 KR grants approval to HD HHI’s next generation K-Ammonia Storage & Powered PCTC
16:13 Damen Shipyards signs contract with UK’s Portland Harbour Authority at Seawork 2024 for the supply of one of its latest tugs
15:52 First 800m3/h multifunctional amphibious dredger successfully completed
15:07 French engineering firm Doris contracted by Mexican operator on its $4.5 billion oil project
14:51 Damen unveils fully electric FCS 3210
14:38 KR, Hanwha Ocean, Amogy and HanwhaAerospace team up for application of ammonia reformers and ammonia fuel cellsystems to ships
13:44 Seabourn's expedition ship Seabourn Pursuit sails into Australia for the first time
13:26 BIMCO: Newbuilding prices climb 3% to highest level in 16 years
12:31 MABUX: Bunker Outlook, Week 24, 2024
12:23 KR grants AiP for 150K ULAC and signs MoU with SHI for development of ammonia-fueled container ships
10:49 DNV leads global joint industry project to set standards for crucial CO2 flow meter traceability and accuracy in CCUS
10:18 Avantis and T.J. Giavridis join forces to enhance support for Greek shipowners
09:36 Berg secures Louis Dreyfus Armateurs propulsion package for wind-assisted Airbus Ro-Ro vessels

2024 June 12

16:47 Solstad bags multiple contract awards in Brazil
13:18 Panama Canal announces new increase in draft and daily transit
11:37 Port of Salalah expansion on track to further reduce port stay by year end
11:06 DP World wins four finance and sustainability awards
09:53 Record number of cruise ships call at Port of Southampton in May

2024 June 11

18:17 WSC releases containers lost at sea report
17:41 SLSMC Board of Directors names new President and CEO
17:24 Hanwha Ocean launches Korea’s first large offshore wind turbine installation vessel
17:16 Kalmar continues to drive decarbonisation of cargo handling with new electric empty container handler
16:34 Bollinger Shipyards hosts christening ceremony for USNS Cherokee Nation (T-ATS 7)
16:15 Kongsberg Maritime expands JCS to its S4-series stainless steel waterjets
16:11 Cargotec' Hiab launches mobile app MyHiab for operators
15:44 VARD launches a 171-meter cable layer for Prysmian
15:19 Ulstain Verft completes successful sea trial of the first CSOV for Olympic
14:23 Danelec achieves DNV Cyber Security Type Approval for DM100 VDR platform
13:19 Baltimore Port key channel is fully operational
12:19 Two major US seaports receive $112 million for maintenance and repair projects
11:41 German line TUI Cruises adds newbuild Mein Schiff 7 to its fleet
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2024 June 10

18:19 Qatar Shipyard receives remote survey approval from ABS
17:42 JDN joins forces with Fortescue to lay sub-sea cables and deliver green electrons from North Africa to Europe
17:39 Strategic Marine inks contract with Ventus Marine for four 27m CTVs for Asia and Europe
17:19 DP World’s SeaRates and CP World accelerate growth of small cargo owners as demand rises for LCL shipments
16:17 New Zealand to introduce bill to reverse oil and gas exploration ban
15:44 BIMCO: Charter owners' share of fleet drops to 40%, lowest since 2002
15:31 Singapore sees strong growth in container volumes in Jan-May 2024
14:18 Cargo Integrity Group highlights cargoes that can compromise supply chain safety
13:42 Glocal Green and Norwegian Hydrogen join forces for green hydrogen in conjunction with bio-methanol production
13:12 CMA CGM to enhance its NWUK & SCUK services
13:07 Vessev unveils world’s first premium tourism electric hydrofoiling vessel - the VS–9
12:43 MV Sheila Ann crew assists stranded sailboat in rough seas