• 2024 June 20 11:44

    MABUX: Bunker Outlook, Week 25, 2024

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

    During Week 25, the MABUX global bunker indices continued their upward trend. The 380 HSFO index saw an increase of 5.90 USD, rising from 544.76 USD/MT to 550.15 USD/MT. The VLSFO index climbed by 3.62 USD, moving from 635.05 USD/MT to 638.67 USD/MT. The MGO index showed the most significant growth, adding 12.79 USD to reach 838.55 USD/MT, up from 825.76 USD/MT last week. As of the current update, the global bunker market maintains a moderate upward trend.

    MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - decreased slightly: minus $1.77 ($88.52 versus $90.29 last week). Despite this dip, the spread remains stably below the $100.00 mark (the SS Breakeven). Conversely, the average weekly value increased by $2.05. In Rotterdam, SS Spread increased for the first time in three weeks, adding $4.00 (from $60.00 last week to 64.00). The average weekly value at the port, however, decreased by $5.17. In Singapore, the difference in the price of 380 HSFO/VLSFO continued to widen: plus $11.00 ($86.00 versus $75.00 last week), gradually approaching the $100.00 threshhold. The weekly average at the port added $7.83. Overall, the SS Spread has stabilized at these levels and hints at an upward correction. We anticipate the SS Spread to trend upward next week. More information is available in the “Differentials” section of www.mabux.com.

    As of June 11, the EU's gas storage sites were 72.3% full. The refilling season has commenced, elevating gas storage levels from 58% at the end of winter—a record-high for that period, attributable to a milder winter and reduced industrial demand. Despite this, the pace of gas inventory build-up has been slower than usual, contributing to rising European gas prices. This increase in prices also reflects recent supply risks from Norway and Russia. Additionally, Asia's competition for LNG supply has intensified due to severe heat waves in South and Southeast Asia, leading to a diversion of cargoes away from Europe. During Week 25, the European gas benchmark TTF showed a slight increase, adding 0.415 EUR/MWh (34.700 EUR/MWh versus 34.285 EUR/MWh last week.

    The price of LNG as bunker fuel in the port of Sines (Portugal) began to rise again, reaching 834 USD/MT on June 17 (plus 41 USD compared to the previous week). At the same time, the difference in price between LNG and conventional fuel on June 17 showed a 20 USD advantage for MGO LS, contrasting with a 4 USD advantage for LNG the week before. On that day, MGO LS was quoted in the port of Sines at 814 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    In Week 25, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) indicated underpricing of all types of fuel segments in the four largest hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, weekly underprice averages rose by 4 points in Rotterdam, 12 points in Singapore, 18 points in Fujairah, and 11 points in Houston.

    In the VLSFO segment, average weekly undervaluation levels showed an increase of 18 points in Rotterdam, 8 points in Singapore, 12 points in Fujairah, and 13 points in Houston.

    In the MGO LS segment, weekly averages grew by 16 points in Rotterdam, 13 points in Singapore, 26 points in Fujairah, and 10 points in Houston. The MDI index in Singapore exceeded the $100 mark once again.

    By the end of the week, the pattern of undervaluation in all selected ports remained unchanged. We expect the trend of fuel underpricing to persist into the next week. We expect the fuel underpricing trend to continue next week.

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

    Since October 2023, Integr8 Fuels has reported a significant shift in shipping routes, with many vessels now opting to navigate around Africa instead of using the Red Sea. This change has resulted in a notable increase in the demand for HSFO (High Sulphur Fuel Oil). Concurrently, ports along the African coast and nearby Spain have experienced a 30% rise in VLSFO (Very Low Sulphur Fuel Oil) sulphur off-specification incidents. The primary cause has been traced to contamination from barges also transporting HSFO. Currently, sulphur levels are the most common off-spec issue for VLSFO. Blending practices aim for a 0.50% sulphur limit, but straying too far from this target can affect shipowners' profit margins. Over the past six months, there has been an observed increase in average sulphur content in VLSFOs in both the ARA (Amsterdam-Rotterdam-Antwerp) and Singapore regions. In Singapore, the likelihood of encountering VLSFO with a sulphur content of 0.51-0.53% has more than doubled in the past six months. Despite this, only 0.3% of VLSFOs in Singapore exceed the sulphur specification. In contrast, the ARA region has seen 2% of VLSFOs test off-spec for sulphur.

    We expect the global bunker market to continue its steady upward movement next week.

    By Sergey Ivanov, Director, MABUX




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
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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
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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
14:08 The Official Journal of the European Union publishes the first-ever EU regulation to reduce methane emissions
13:24 High cat fines found in the Amsterdam-Rotterdam-Antwerp region bunker fuel samples, alerts CTI-Maritec
12:58 Yangzijiang Shipbuilding works to acquire over 866,671 sqm of land for new clean energy ship manufacturing base
12:42 GTT entrusted by Samsung Heavy Industries with the tank design of a new FLNG
10:47 Maersk signs an MoU for ship recycling in Bahrain

2024 July 15

18:06 European Shipowners and Maritime Transport Unions launch initiative to support shipping and seafarers in the digital transition