Bunker Global Open Directory News2021-04-29
Bunker Weekly Outlook, Week 17, 2021
MABUX World Bunker Index increased during the week. The 380 HSFO index has increased from 417.92 USD/MT to 423.68 USD/ MT (+5.76 USD), VLSFO has added 13.32 USD: from 505.80 USD/MT up to 519.12 USD/MT. MGO LS increased by 12.97 USD from 580.90 USD/MT to 593.87 USD/MT.
The Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO –haven’t shown big difference and averaged 91.94 USD (91.11 USD last week). SS Spread in Rotterdam has increased during the week from 96.00 USD up to 104.00 USD (+8.00 USD). In Singapore, SS Spread has also slightly increased but only by 1USD: from 110.00 USD to 111.00 USD. More details are available from new MABUX Differential Section on www.mabux.com.
Correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark) in the four global largest hubs during the past week showed that 380 HSFO remain undervalued in all selected ports in a range from minus 4USD (Houston) to minus 31USD (Singapore). VLSFO according to DBP Index, is undervalued in a range from minus 15 USD (Rotterdam) to minus 27 USD (Singapore) in all selected ports except of Houston, where it is overpriced by +10 USD. MGO LS was also underpriced in all selected ports in a range from minus 2 (Houston) to minus 44 Singapore.
Several companies worldwide, incl. NYK, is taking part in an initiative to conduct safety assessments and establish standards for use of ammonia as a marine fuel, and thus realize the International Maritime Organization (IMO) target to cut greenhouse gas (GHG) emissions from shipping by at least 50 percent by 2050. Since carbon dioxide (CO2) is not emitted when ammonia is burned, ammonia is considered to have promise as a next-generation marine fuel that could mitigate shipping’s impact on climate change. In addition, it is said that zero emissions can be realized by utilizing CO2-free hydrogen as a raw material for ammonia. However, due to the extreme toxicity of ammonia, safety assessments are critical to formulate standards for use of it as a marine fuel.