• 2024 July 11 12:36

    MABUX: Bunker Outlook, Week 28, 2024

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

    Over the Week 28, the MABUX global bunker indices exhibited a moderate downward movement. The 380 HSFO Index fell by 2.73 USD, from 560.59 USD/MT last week to 557.86 USD/MT, remaining within the 550-560 USD range. The VLSFO index decreased by 2.29 USD (660.79 USD/MT versus 663.08 USD/MT last week). The MGO index dropped by 9.87 USD (from 862.55 USD/MT last week to 852.68 USD/MT). At the time of writing, the global bunker market continued to trend moderately downward.

    MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - showed a slight increase: plus $0.44 ($102.93 versus $102.49 last week), remaining close to the $100.00 breakeven mark. The weekly average increased by $3.76. In Rotterdam, SS Spread values decreased by $5.00 to $63.00 versus $68.00 last week, with the weekly average at the port decreasing symbolically by $0.84. In Singapore, the price difference for 380 HSFO/VLSFO dropped significantly by $15.00 ($100.00 versus $115.00 last week), falling again to $100.00. The weekly average at the port, on the contrary, increased by $1.00. Currently, the SS Spread lacks a stable trend, and we expect the dynamics of multidirectional fluctuations to continue next week. More information is available in the “Differentials” section of www.mabux.com.

    European gas demand continued its downfall in the first half of 2024, primarily due to collapsing gas-fired generation and lower gas use in buildings. During week 28, the European gas benchmark TTF showed a moderate decrease: minus 2.350 EUR/MWh (31.335 EUR/MWh versus 33.685 EUR/MWh last week).

    The price of LNG as bunker fuel in the port of Sines (Portugal) showed a significant decrease, reaching 743 USD/MT on July 10 (minus 50 USD compared to last week). At the same time, the price difference between LNG and conventional fuel on July 10 widened sharply to 113 USD in favor of LNG, compared to 47 USD a week earlier, with MGO LS quoted at 856 USD/MT in the port of Sines. More information is available in the LNG Bunkering section of www.mabux.com.

    In Week 28, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index) indicated undervaluation across all fuel segments in the world's four largest hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, weekly underprice averages fell by 6 points in Rotterdam and 5 points in Houston, but rose by 1 point in Singapore and 7 points in Fujairah.

    In the VLSFO segment, average weekly undervaluation levels decreased by 5 points in Rotterdam and 2 points in Fujairah, but increased by 1 point in Singapore and 4 points in Houston.

    In the MGO LS segment, Houston moved into the undervalued zone, making all four selected ports undercharged. The weekly underprice average increased by 4 points in Rotterdam, 8 points in Singapore, 10 points in Fujairah, and 4 points in Houston. The MDI index in Rotterdam surpassed the $100 mark, while Singapore consistently remained above this level.

    Over the week, the balance of overvalued/undervalued ports shifted in favor of undervaluation, with all segments of bunker fuel underpriced in all selected ports. We expect the trend towards fuel underestimation 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.

    According to Clarksons Research, alternatively-fuelled ships comprised about a third of ships ordered in the first half of the year, accounting for 41% of tonnage orders. The report highlights 109 orders for LNG-fuelled ships (51 excluding LNG carriers), 49 for methanol, 15 for ammonia, 42 for LPG, and four for hydrogen. In comparison, 54% of tonnage orders were alternatively fuelled in the same period of 2022. Currently, about 50% of the total orderbook can operate on alternative fuels. It is forecasted that over a fifth of all fleet capacity will be capable of using alternative fuels by the end of the decade. However, investments in port infrastructure and the availability of "green" fuels continue to lag behind. While there are 273 ports with LNG bunkering and 251 ports with shore power connections either in place or planned, only 29 ports have methanol bunkering available or planned. Additionally, 28.3% of total tonnage in the global fleet, or 5,838 ships, are now equipped with scrubbers. Meanwhile, 33.5% of global tonnage, or 8,713 ships, have energy-saving technologies on board.

    We expect next week the downward trend in the global bunker market to lose its momentum, and bunker indices will return to moderate growth.

    By Sergey Ivanov, Director, MABUX




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
17:35 APM Terminals Mumbai switches to 80% renewable electricity
17:05 Seaspan Shipyards welcomes the formation of the “ICE Pact”
16:41 World’s first entirely hydrogen-powered ferry welcomes passengers in San Francisco Bay
16:26 FMC issues request for additional information regarding Gemini Agreement
16:24 Saipem awarded two offshore projects in Saudi Arabia worth approximately 500 million USD
16:12 Pecém Complex selects Stolthaven Terminals and GES Consortium as H2V Hub green ammonia operator
15:43 Singapore's bunker sales rise 8.5% in the first half of 2024
15:27 TORM purchases eight and sells one second-hand MR vessel
14:55 Adani plans to build port in Vietnam
13:35 Regulator gives conditional nod to HD Korea Shipping's purchase of stake in STX Heavy
13:02 HD Korea Shipbuilding wins US$2.67 billion order to build 12 container carriers
12:51 Maersk introduces SH3 ocean service between China and Bangladesh
12:24 ABS to сlass two new Seatrium FPSOs for Petrobras
11:42 CSP Abu Dhabi Terminal surpasses throughput of 5 mln TEUs
11:11 Fincantieri launches the seventh PPA “Domenico Millelire” in Riva Trigoso
10:51 India's first transshipment port receives its first container ship
10:35 The “Egypt Green Hydrogen” project in SCZONE wins a contract worth € 397 million to export green fuel to Europe

2024 July 14

15:17 FMC issues request for additional information regarding Gemini agreement
13:06 Lummus and MOL Group begin engineering execution on advanced waste plastic recycling plant in Hungary
10:51 Chinese line launches new Arctic container service to Arkhangelsk
09:49 Malta PM tours Abela toured MSC World Europa officially inagurates Valletta shore power

2024 July 13

15:47 €11 million for 1-MW Dynamic Electrolyser Unit
14:11 PSA Group and Singapore mitigate impact of global supply chain disruptions
12:23 NREL: Offshore wind turbines offer path for clean hydrogen production
10:06 MMMCZCS releases a technical, environmental, and techno-economic analysis of the impacts of vessels preparation and conversion

2024 July 12

18:00 Qingdao Port International to buy oil terminal assets for $1.30 billion
17:36 Saipem signs framework agreement with bp for offshore activities in Azerbaijan
17:06 AG&P LNG and BK LNG Solution signs an agreement to bring BKLS's first LNG spot cargo into China
16:31 Allseas removes final Brent platform with historic lift
15:58 ZPMC Qidong Marine Engineering launches the world’s largest FPSO bow section for Petrobras
15:25 MSC acquires Gram Car Carriers
14:58 ABP boosts marine capability through pilot launch upgrades
14:34 Fincantieri receives ISO 31030 attestation from RINA
13:52 Second new dual-fuel fast Ro-Pax ferry to enter service for Balearia after successful sea trials
13:24 ADNOC deploys AIQ’s world-first RoboWell AI solution in offshore operations
12:59 ABS issues AIP for new gangway design from Pengrui and COSCO
11:38 Port of Long Beach data project receives $7.875 mln to speed goods delivery
11:15 ZeroNorth to provide its eBDN solution on 12 barges operated by Vitol Bunkers in Singapore
10:46 Seatrium secures customer contract agreement from Teekay Shipping for the repairs and upgrades of a fleet of vessels