• 2024 June 13 12:31

    MABUX: Bunker Outlook, Week 24, 2024

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

    During Week 24, the MABUX global bunker indices showed robust growth across all segments. The 380 HSFO index rose by 7.74 USD, moving from 536.75 USD/MT last week to 544.49 USD/MT. The VLSFO index increased by 10.97 USD (633.73 USD/MT versus 622.76 USD/MT last week). The MGO index saw the most significant rise, adding 22.09 USD (from 801.93 USD/MT last week to 824.02 USD/MT). At the time of writing, the upward trend moderately continued in the global bunker market.

    MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - experienced a moderate increase: plus $3.23 ($89.24 vs. $86.01 last week). Despite this increase, the spread remains consistently below the critical $100.00 breakeven point. Conversely, the weekly average of the SS decreased by $5.40. In Rotterdam, SS Spread continued its decline, dropping by $4.00 (from $69.00 last week to 65.00). The port's SS weekly average also decreased by $6.50. In Singapore, the price difference for 380 HSFO/VLSFO increased slightly by $7.00 ($75.00 vs. $68.00 last week), with the weekly average adding $7.67. Overall, while the contraction of the SS Spread has paused, the indicators suggest an upward correction may continue into the next week. More information is available in the "Differentials" section of mabux.com.

    StanChart has reported that there has been no change in the dominant dynamics of the European gas market, with inventories building slower than usual and the markets remaining highly sensitive to supply issues. EU gas inventories stood at 81.75 billion cubic meters (bcm) on 2 June, showing a year-on-year increase of 1.1 bcm and a surplus of 14.9 bcm above the five-year average. However, experts note that the surplus above the five-year average has decreased on 45 of the past 48 days. StanChart predicts that prices are likely to remain elevated, bolstered by slower-than-average inventory builds. In Week 24, the European gas benchmark TTF rose moderately by 0.488 EUR/MWh, from 33.797 EUR/MWh to 34.285 EUR/MWh.

    Meanwhile, the price of LNG as bunker fuel in the port of Sines (Portugal) decreased slightly, reaching 793 USD/MT on June 11 (minus 25 USD compared to last week). Meanwhile, the price gap between LNG and conventional fuel almost closed. On June 11, LNG was priced just 4 USD below MGO LS, a significant change from a week earlier when MGO LS was 14 USD cheaper. On June 11, MGO LS was quoted at 797 USD/MT in the port of Sines. More information is available in the LNG Bunkering section of mabux.com.

    In Week 24, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) revealed the following trends across the major global hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, Singapore returned to an undervalued position, making all selected ports underpriced. The weekly averages widened by 5 points in Rotterdam, 11 points in Singapore, 1 point in Fujairah, and 4 points in Houston.

    In the VLSFO segment, according to the MDI, all ports were undervalued, with average weekly underprice levels increasing by 10 points in Rotterdam, 2 points in Singapore, 3 points in Fujairah, and 18 points in Houston.

    In the MGO LS segment, Houston returned to the undervalued zone, joining the other ports in this bunker fuel segment. Average weekly levels increased by 7 points in Rotterdam, 1 point in Fujairah, and 14 points in Houston, but decreased by 2 points in Singapore, dropping the MDI index in Singapore below $100.

    At the end of the week, the balance of overvalued/undervalued ports underwent significant changes: all segments of bunker fuel were undervalued in all selected ports. We expect this trend of underpricing of fuel to continue into the next week.

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

    According to the report from DNV, 33 new orders for alternative-fuelled vessels were placed in May, with 23 of these orders being for methanol-fuelled vessels. Among the methanol-fuelled vessel orders, 10 were for the container segment, five were for bulk carriers, and four were for car carriers. The remaining alternative-fuelled vessel orders for May included eight for LNG and two for ammonia. So far in 2024, there have been a total of 127 new orders for alternative-fuelled vessels, marking a 55% increase compared to the first five months of 2023. Methanol has emerged as the leading alternative fuel segment this year, with 70 new orders for methanol-fuelled vessels, accounting for 55% of all new orders for alternative-fuelled vessels in 2024. Although methanol is still behind LNG in overall terms, these recent figures indicate a significant and growing interest in methanol-fuelled vessels from the market. Last month’s orders for ammonia-fuelled vessels brought the total for 2024 to 11 – nine more than were ordered during the whole of 2023.

    We anticipate a sustained upward trend in the global bunker market into the next week.

    By Sergey Ivanov, Director, MABUX




2024 July 21

17:39 Global IT outage disrupts operations at European box terminals
17:29 RWE secures its first offshore wind site in Australia with a capacity of up to 2 gigawatts
14:29 VARD signs contract on a CSOV with Rem Offshore
13:06 GovWire: All UK ports handled a total of 434.9 million tonnes in 2023
11:32 KBR secures advisory role for Kuwait’s renewables and hydrogen project
09:57 WSF selects ABB as propulsion single source vendor for five new hybrid ferries

2024 July 20

16:11 First hybrid ship launched at Kanellos Shipyards in Perama
14:21 DOF Group awarded multiple contracts in Brazil
12:18 HD Hyundai Heavy Industries union initiates strike procedures
10:06 Asyad Group looks to buy or operate ports in southeast Asia

2024 July 19

18:00 Global Centre for Maritime Decarbonisation concludes biofuels supply chain trials
17:10 Four Greek ports receive €10 million in CEF funds
16:47 Rauma shipyard launches the second passenger-car ferry ordered for Tasmania
16:25 MOL to invest in Carnot, a developer of technology for highly efficient engines
15:48 ABS and KRISO to advance SMR-powered vessels and floating power generation platforms
15:31 Ports of Indiana, Port of Antwerp-Bruges sign MoU
14:59 Fratelli Cosulich holds a steel cutting ceremony for the new vessel "Marta Cosulich" at Taizhou Maple Leaf Shipbuilding
14:13 Suez Canal reports 23.4% drop in annual revenue due to Red Sea crisis
13:42 Dual fuel standby vessels begin operations in Hong Kong
13:08 Bluferries, C.T.E. Perdikaris Engineering, Architectural & Technical Services and RINA announce the launch of a hybrid Ro-Ro passenger ship
12:30 DP World and Evyap Group forge new logistics hub to boost Turkish trade
12:11 Sempra Infrastructure announces EPC contract with Bechtel for Port Arthur LNG Phase 2
11:40 Two oil tankers on fire off Singapore, crew rescued
11:20 World Bank Group releases report on offshore wind development scenarios for Brazil based on analysis by DNV
10:42 FPSO Bacalhau receives AiP for abate notation from classification society DNV
10:19 Port Houston approved for cold treatment
09:55 Fujairah’s fuel oil inventories rise 5% this month

2024 July 18

18:00 South Korea slaps sanctions on Hong Kong shipping firm
17:31 IBIA seeks change to CII regulation for bunker vessels
17:06 Rem Offshore and VARD sign contract for CSOV
16:31 EU to invest record €7 billion in transport infrastructure
16:02 Port of Antwerp-Bruges throughput up 3% to 143.2 million tonnes in H1 2024
15:47 Port of Rotterdam posts cargo throughput of 220 million tonnes in first half 2024
15:30 Port of Oakland full imports rises 26.8% to 84,040 TEUs in June 2024
14:43 MSC increase own-operated service share
14:13 GTT receives an order from Dalian Shipbuilding for the tank design of two new LNG carriers
13:37 NYK acquires multiple segments of ENEOS Ocean’s shipping business
13:01 Bunker price trends in the world's four largest hubs, July 15-29 – MABUX
12:42 ITOCHU, Nihon Shipyard, ClassNK and MPA, signed MOU for joint study of ammonia fueled bulk carriers
12:12 KENC Engineering awarded with jacket seafastening scope
11:30 CMA CGM enters into a strategic partnership with Google
11:03 Port of Los Angeles container volume increases 10% to 827,757 TEU in June 2024
10:53 The Government of Canada invests in marine industry’s transition to green ship technology
10:13 Scottish Government to purchase seven new ferries
09:19 Damen signs four vessel contract with Toyota Tsusho for Angolan port development project

2024 July 17

18:05 Peninsula completes LNG bunkering for ‘K’ LINE in Gibraltar
17:36 Yangzijiang to invest $412 million in shipyard expansion
17:06 Singapore's non-oil domestic exports down 8.7% in June 2024
16:42 Damen starts steel cutting on new hybrid island class vessels for BC Ferries
16:23 Mabanaft submits permit-related approval documents for planned construction of ammonia import terminal in Hamburg
15:54 Helsinki, Tallinn ports get €15m EU funding
15:24 LNG carrier completes Arctic voyage to China in 18 days
14:45 Salvage team to start pumping fuel from grounded vessel on South African coast
14:23 Fertiglobe wins first H2Global pilot auction for renewable ammonia
13:54 Maersk says Red Sea shipping disruption having global effects
13:39 Average spot rates from the Far East to US East Coast increased by 3.7% - Xeneta
11:30 NYK completes world's first truck-to-ship ammonia bunkering of ammonia-fueled tugboat
10:52 CEVA Logistics, Almajdouie Logistics sign JV in Saudi Arabia 
10:24 Port of Long Beach container volume up up 15.3% to 835,412 TEUs in June 2024

2024 July 16

18:02 China extends visa-free transit policy to 37 ports
17:25 Works on schedule for the Ravenna regasifier, with the plant operational in the first quarter of 2025
17:05 STX Heavy Industries changes name to “HD Hyundai Marine Engine”
16:45 OOCL's revenue rises 14pc to US$2.2bln
16:20 Saltchuk acquires all of the outstanding shares of Overseas Shipholding Group
15:57 EU sets four conditions for the port of Piraeus inverstments
15:41 Serbia to open tender for Prahovo port overhaul in 2024
15:37 EIB lends €90 million for sustainable expansion of the Port of Livorno
15:34 Crew of capsized oil tanker off Oman still missing
15:14 Lomarlabs signs with Cargokite to develop a new ship class of micro ships
14:47 Greece extends naval drills that deter Russian oil transfers - Bloomberg