All bunker prices described in the text below have been adjusted for calorific content to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market over the past week.
B100’s premium over VLSFO in Rotterdam has widened to $67/mt, after the spread narrowed to just $10/mt last week. The same pattern has played out in Singapore, where B100’s premium over VLSFO has widened by $28/mt to $326/mt.
The OceanScore FuelEU Pooling Index, meanwhile, has barely moved for a second straight week, inching up by just €0.60/mtCO2e to €119.50/mtCO2e.
“Market activity has been subdued during the summer holiday period, with limited activity across the FuelEU pooling market,” OceanScore said. “Against this quieter backdrop, available offers continue to reflect differing seller strategies and underlying surplus generation costs,” it added.
Rotterdam’s liquefied biomethane (LBM) has also lost its regulation-driven edge against HSFO on EU-EU voyages.
For vessels with diesel slow-speed (SS) engines, LBM has flipped from a $6/mt discount to HSFO last week to a $117/mt premium. For vessels with Otto medium-speed (MS) engines, its premium has widened by $121/mt to $284/mt.
LBM has also become less competitive against VLSFO. Its premium over VLSFO for Otto MS vessels has widened by $87/mt to $153/mt, while its discount for diesel SS vessels has shrunk by $89/mt to just $14/mt.
Liquid fuels
Rotterdam’s conventional bunker fuel prices have dropped by $13-58/mt over the past week, while B100 has moved sharply in the opposite direction, gaining $43/mt. The port’s B30-VLSFO and B30-LSMGO prices have risen by $67/mt and $41/mt, respectively.
The ARA has seen low bunker demand of late. Fuel availability in the bunkering hub is tight for prompt supplies, with recommended lead times of around 5-7 days to get good coverage, a trader told ENGINE.
The Dutch ZRE A price has gained €22.50/mtCO2e over the past week to €152.50/mtCO2e.
Singapore’s conventional bunker fuel prices have dropped by $37-56/mt over the past week and its B100 has declined by a much smaller $9/mt.
VLSFO availability in Singapore remains tight, with lead times varying significantly between suppliers from 7 to 19 days. A source attributed the tightness to reduced supply and shortages of blending components.
Liquid gases
Rotterdam’s LNG prices have gained $46-48/mt over the past week, depending on engine type. LNG holds $243-402/mt premiums over VLSFO, and $85-244/mt discounts to LSMGO in Rotterdam.
LBM prices have risen even more sharply, surging by $74-76/mt on the week. LBM’s discounts to LNG in Rotterdam have narrowed slightly to $249-257/mt.
Singapore’s LNG prices have edged lower by $3-4/mt.
Source: By Konica Bhatt, ENGINE,
