bunker prices

Unsustainable Asia Freight Rates Makes Carriers Lose Pricing

Credits: Christian Lue/ Unsplash
  • Spot cargo from Asia is being heavily discounted by ocean carriers as a “top-up” for their much higher-paying contract business. 
  • Carriers have effectively encouraged forward quoting by Chinese forwarders with fictitious rates, a director of a UK-based forwarder says.
  • UK forwarders say that carriers have been given “carte blanche” on rates to fill the ships this side of Christmas.

Spot cargo from Asia is being heavily discounted by ocean carriers as a “top-up”...

https://mfame.guru/unsustainable-asia-freight-rates-makes-carriers-lose-pricing/

MABUX expects bunker prices to continue moving in different directions

Over Week 24 of the year, the world bunker indices showed moderate irregular changes, according to Sergey Ivanov, director of Marine Bunker Exchange (MABUX).

The 380 HSFO index fell to US$760.12 /mt, the VLSFO index, in turn, rose to US$1093.45 /mt and the MGO index climbed to US$1391.67 /mt.

“The VLSFO and MGO indices are at their all-time highs” pointed out Ivanov.

The Global Scrubber Spread (SS) weekly average – the price difference between 380 HSFO and VLSFO – continued its firm upward trend...

https://container-news.com/mabux-expects-bunker-prices-to-continue-moving-in-different-directions/

Hapag-Lloyd’s earnings ‘significantly higher’ despite uncertainty of 2020

Hapag-Lloyd issued its preliminary 2020 results on Wednesday and said earnings were “significantly higher despite the coronavirus pandemic.” In fact, earnings before interest, taxes, depreciation and amortization (EBITDA) were some $900 million higher than in 2019.

The German shipping line reported 2020 EBITDA of $3.1 billion, up from $2.22 billion the year before. 

According to the preliminary figures, earnings before interest and taxes (EBIT) increased to about $1.5 billion, up from $908...

https://www.freightwaves.com/news/hapag-lloyds-earnings-significantly-higher-despite-uncertainty-of-2020

Marine Fuel Market Looking for A ‘Stable’ 2021 After ‘Shaky’ 2020

  • Vessel earnings under pressure as bunker prices rise.
  • VLSFO crack becomes strongest transport fuel.
  • 2021 expectations for HSFO muddied by conflicted fundamentals.

The European marine fuel market is hoping for calmer waters in 2021, with market sources anticipating a stronger year ahead as the rollout of coronavirus vaccine programs allow global activity to recover, reports Platts.

Bunker prices rise

Despite expectations for rising oil demand, S&P Global Platts Analytics expects levels to remain...

https://mfame.guru/marine-fuel-market-looking-for-a-stable-2021-after-shaky-2020/

Where Bunker Prices Are Headed In The Future?

  • Pricing methodology used to calculate fuel energy value.
  • This resulted in greater demand for atmospheric high sulfur residues as cracker feedstocks, thus resulting in a hike in the price of IFO 380.
  • VLSFO is definitely here to stay and is likely to develop into a liquid commodity market, allowing better hedging opportunities to ship operators.
  • The imposition of a global carbon tax that incentivizes carbon reduction will help in moving the decarbonization agenda forward quickly.

Buyers of...

https://mfame.guru/where-bunker-prices-are-headed-in-the-future/

Fuel markets show recovery signs amid fears of a second pandemic wave

Despite fears of a second wave of Covid-19, fuel markets rebounded last week, showing signs of improving fundamentals as global supplies continue to tighten.

MABUX Global Bunker Index for 380 HSFO rose slightly from US$283/mt on 18 June up to US$286/mt on 25 June, while VLSFO also saw a minor increase of US$4 (from US$337/mt to US$341/mt) and MGO LS presented an increase of US$8 (from US$411/mt to US$419/mt).

“Meanwhile, the pace of upward evolution has slowed somewhat and in the last two days we...

https://container-news.com/fuel-markets-show-recovery-signs-amid-fears-of-a-second-pandemic-wave/

Low Bunker Prices Aiding in Carriers Rerouting Bypassing the Suez Canal!

According to a LoadStar article written by Mike Wackett, with shippers seeking longer transit times during coronavirus lockdowns, carriers are considering routing some Asia-North Europe headhaul voyages via the Cape of Good Hope.

Rerouting Has Begun

It was reported last week that CMA CGM had re-routed its 16,020 teu CMA CGM Alexander Humboldt to Asia via South Africa, taking advantage of plummeting bunker prices and saving Suez Canal tolls.

According to Vessel Finder AIS data, the scrubber-fitted...

http://mfame.guru/low-bunker-prices-aiding-in-carriers-rerouting-bypassing-the-suez-canal/

Oil price hikes push bunker costs

The price of crude has seen an uptick in the price of marine bunkers also, with both West Texas Intermediate and Brent Crude, the two main indicators of oil prices, showing modest gains over the last couple of days.

“There is strong correlation between oil and bunker markets. Bunker prices follow oil market but with 12-18 hours delay,” explained Marine Bunker Exchange director Sergey Ivanov.

He went on to say, “We have established a parallel bunker market, Digital Bunker Market – on our site...

https://container-news.com/oil-price-hikes-push-bunker-costs/

Fuel prices stabilise again

In the topsy turvy world of bunker fuel prices today has been a relatively quiet day. Overall fuel prices have stabilised after a significant decline yesterday with the global index showing mainly minor changes in price, though VLSFO did fall US$5.00/tonne.

European fuel prices appreciated slightly, in both the Northern and Southern regions and for all three main fuel types. The only exception was a US$1/tonne decline in Southern Europe.

Other regions showed minor shifts though, most notably in...

https://container-news.com/fuel-prices-stabilise-again/

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