• 2024 August 1 12:08

    Bunker price trends in the world's four largest hubs, Jul 29 - Aug 4 – MABUX

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

    Over the 31st week, the the MABUX global bunker indices continued their downward trajectory. The 380 HSFO index fell by another 9.30 USD: from 540.35 USD/MT last week to 531.05 USD/MT, gradually nearing the 500 USD mark. The VLSFO index declined by 10.88 USD (630.92 USD/MT versus 641.80 USD/MT last week). The MGO index dropped by 13.61 USD (from 823.69 USD/MT last week to 810.08 USD/MT), approaching the 800 USD mark. At the time of writing, the global bunker indices showed signs of a moderate upward reversal.

    The MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - experienced a moderate decrease: minus $1.58 ($99.87 versus $101.45 last week), once again breaching the $100.00 mark (SS Breakeven). The weekly average also saw a slight decrease of $0.38. In Rotterdam, the SS Spread widened by $10.00 to $74.00 versus $64.00 last week, with the weekly average increasing by $0.33. In Singapore, the 380 HSFO/VLSFO spread rose by $4: from $107.00 last week to $111.00, remaining above the $100.00 mark. The weekly average in the port widened by $4.50. Currently, there is still no clear trend in the dynamics of the Global SS Spread and SS indices in ports. We do not anticipate significant changes in the SS Spread trends next week. More detailed information is available in the "Differentials" section of www.mabux.com.

    The latest development in LNG supply and European prices shows the vulnerability of Europe’s benchmark prices to supply outages. Meantime, as of July 15, Europe’s natural gas storage sites are already 82.5% full. At current supply and demand dynamics, the EU will easily manage to fill its storage sites well ahead of the winter heating season. Over the week 31, the European gas benchmark TTF rose slightly: plus 2,739 EUR/MWh (34,361 EUR/MWh vs. 31,622 EUR/MWh last week).

    The price of LNG as a bunker fuel in the port of Sines (Portugal) increased by another USD 13 over the week compared to the previous week, reaching USD 754/MT on July 29. At the same time, the price difference between LNG and conventional fuel on July 29 decreased to USD 46 in favor of LNG, compared to USD 75 the previous week. MGO LS was quoted at USD 800/MT on that day in the port of Sines. More detailed information is available in the LNG Bunkering section on www.mabux.com.

    In Week 31, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) registered the following bunker price trends in the world's four largest hubs: Rotterdam, Singapore, Fujairah and Houston:

    • 380 HSFO segment: All four ports remained in the undercharge zone, with weekly averages down 4 bps in Rotterdam, 6 bps in Singapore and 10 bps in Houston, but up 7 bps in Fujairah.

    • VLSFO segment: All four ports remained undervalued, with weekly averages declining further by 6 bps in Rotterdam, 13 bps in Singapore, 7 bps in Fujairah, and 3 bps in Houston. The MDI indices in both Singapore and Fujairah approached the 100% correlation mark between the market price and the MABUX digital benchmark.

    • MGO LS segment: The MDI index in Houston showed the 100% correlation between the market price and the MABUX digital benchmark, decreasing by 5 bps. The other three ports were undervalued. The underpricing weekly averages decreased by 2 points in Singapore and Fujairah. The MDI index in Rotterdam remained unchanged. Meantime, the indices in Rotterdam and Singapore stayed close to the $100 mark.

    Over the week, the balance of overvalued/undervalued ports swung again towards undervaluation. We expect the underpricing trend for all types of bunker fuel 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.

    Clarksons Research has released its latest Green Technology Tracker, revealing continued investment in alternative fuels during the first half of 2024. These investments represented about one-third of all newbuild orders and 41% of the total tonnage ordered. Orders were placed for vessels capable of using LNG (109 orders, with 51 excluding LNG carriers), methanol (49 orders), ammonia (15 orders), LPG (42 orders), and hydrogen (4 orders). Excluding LNG carriers, the proportion of LNG fuel-capable tonnage increased relative to methanol-capable tonnage compared to 2023 levels. However, the share of alternative fuel orders declined from the 2022 peak of 54% of tonnage ordered, due to a shift in the types of ships being ordered, particularly a decrease in containership orders in the first half of 2024. The current orderbook shows that approximately 50% of the tonnage is alternative fuel capable. Clarksons Research projects that by the end of the decade, over 20% of fleet capacity will be alternative fuel capable, up from 7% in 2024 and just 2% in 2017. Despite these advancements, investments in port infrastructure and the availability of 'green' fuels are lagging behind demand. Currently, 273 ports have LNG bunkering facilities, and 251 ports have shore power connections either available or planned. In stark contrast, only 29 ports have methanol bunkering available or planned.

    We expect that next week global bunker indices have the potential to resume their upward trend.

    By Sergey Ivanov, Director, MABUX




2024 November 2

18:06 Singapore’s first fully electric cargo vessel wins Green Ship Award at SRS Forum
17:20 VTTI looks to buy into LNG terminals in Asia
16:48 Hudong-Zhonghua Shipbuilding signs contracts for 12 large container ships in the past 10 days
16:32 CHIMBUSCO secures its first LNG refueling service in Europe
15:46 SLB OneSubsea awarded subsea boosting contract for bp’s Kaskida project in Gulf of Mexico
15:24 Wilson Sons to start construction of three new eco-friendly tugboats in 2025
14:57 Rem Offshore holds keel laying ceremony for REM Pioneer
12:30 World's first conversion of large container ship to run on methanol successfully completed
11:52 New offshore platform taps into potential of heavy-oil reserves in China
11:24 HRDD completes desulphurization tower system conversion for a PCTC
09:48 TOWT launches its first cargo sailing ship in Le Havre

2024 November 1

18:00 Marlink to deploy Sealink NextGen hybrid solution on 26 tankers for Transpetro
17:38 Austal Australia delivers 8th Evolved Cape-class Patrol Boat to Royal Australian Navy
17:23 Acteon and Applied Fiber enter MoU to collaborate on mooring solutions
16:54 KOTUG International and Maritalia S.A. secure major marine services contract for bp’s Greater Tortue Ahmeyim gas project
16:24 BW LPG takes delivery of vessel BW Chinook from Avance Gas
15:44 HD Hyundai may nearly double shipbuilding capacity in Vietnam
15:24 Samsung Heavy Industries secures $390 mln contract for four Suezmax tankers
14:36 EU imposes duties on unfairly subsidised electric vehicles from China
14:23 Port of Montreal workers at two terminals start new strike
13:41 Chinese ports container volume rises 7.7 % from January to September of 2024
13:22 MOL, COSCO Co-host 6th Shanghai International LNG Shipping Forum
12:43 Global schedule reliability drops to 51.4% in September 2024
12:22 GTT secures technical services contract with Maran Tankers for eight LNG Dual-Fuel Suezmax vessels
11:45 MSC inks up $2.1bn container ship at the reborn shipyard Rongsheng Heavy Industries
11:28 China's first 'smart factory' for offshore oil, gas equipment fully operational
10:43 Yanmar completes land-based demonstration testing of a hydrogen engine for power generation in coastal vessels
10:23 Samsung Heavy wins W358 bln LNG ship order in Asia
09:58 EU greenhouse gas emissions fell by over 8% in 2023

2024 October 31

18:00 MAN receives multiple orders for MAN B&W G95ME-LGIM Mk 10.5 methanol engines to power a series of VLCV
17:23 The Marechal Duque de Caxias platform ship starts producing in the pre-salt layer
17:06 IWS Seawalker CSOV makes it 1000 ship designs from Kongsberg Maritime
16:45 “K” Line Wind Service and Japan Marine United sign agreement for Phase 2 of NEDO’s Green Innovation Fund Project
16:04 Wärtsilä introduces its innovative NextDF feature for the Wärtsilä 25DF dual-fuel engine
15:45 MOL plans to change charter contract for vessels related to Russia business
15:44 MABUX: Bunker price trends in the world's four largest hubs, Oct 8 - Nov 1, 2024
15:23 HHLA raises expectations for fiscal year 2024
14:59 Major fire extinguished at UK nuclear submarine yard
14:16 AD Ports Group and Somali Ministry of Fisheries & Blue Economy sign MoU for maritime sector development
13:44 Maersk reports Q3 results
12:43 UECC orders four advanced multi-fuel battery hybrid pure car and truck carriers from China Merchants Jinling Shipyard Nanjing
11:39 Japanese сonsortium produces design concept for eco-friendly VLCC
11:12 TMC Compressors bags contract to supply four LNG carriers
10:46 Panama Canal operating costs down 5% in FY2024
09:29 HIF Global and Antarctica21 promote sustainable tourism with e-Fuels

2024 October 30

18:00 East Java Multipurpose Terminal partners with Sinarmas LDA Usaha Pelabuhan
17:22 Container traffic at Iranian ports up 5% in the first half of the current Iranian calendar year
17:06 CIMC SOE delivers second 7,600 cbm LNG bunkering vessel to Seaspan Energy
16:42 Klaveness Combination Carriers makes first move into wind with bound4blue eSAIL system on CABU III newbuild
16:23 Transport workers' strike in Argentina to affect port operations
15:59 South Korea's seaport container cargo up 3.5 pct in Q3
15:46 Stena Line marks significant milestones in build of NewMax ships, Stena Futura and Stena Connecta
14:55 DNV and LR grant AiP to HD Hyundai Heavy Industries for ammonia duel-fuel large container vessel
14:45 Jiaxing Port adds a new sea-river intermodal operation area
13:32 Maersk signs long-term methanol sourcing deal
13:08 MOL and Pyxis sign Collaboration Agreement for development and market expansion of electric vessels in Singapore and Japan
12:40 AD Ports Group and the General Department of Vietnam Customs sign MoU
12:21 TE H2, CIP, and A.P. Møller Capital Partner for a large-scale project in the Kingdom of Morocco
11:40 ClassNK issues AiP for Autonomous Navigation Assistance System developed by Samsung Heavy Industries
11:20 MacGregor launches Carbon Calculator
10:55 Russian seaports in Q3, 2024: Infographics and Analytics
10:30 World's first ammonia-fuel dual-fuel bulk carrier begins construction
10:09 Erik Thun launches the next-generation Lake Vanern Max vessel
09:03 SCHOTTEL receives an order to supply azimuth thrusters for four new escort tugs for Saltchuk Marine

2024 October 29

18:00 The U.S. Environmental Protection Agency announces selections for nearly $3 bln of investments in Clean Ports
17:34 Asyaport becomes first Turkish port to provide shore power to container ships
17:00 Port of Los Angeles awarded $412 million grant from U.S. EPA for zero-emission transformation
16:42 Oil spill occurred during bunkering operations at the Port of Singapore
16:10 World’s first electric hydrofoil ferry line takes off in Stockholm
15:46 Wallenius Wilhelmsen signs five-year, $766 million deal