Meeting of the International Maritime Organization's (IMO's) Intersessional Working Group on Greenhouse Gases (ISWG-GHG) failed to achieve agreement on the details of a draft efficiency regulation proposal for existing vessels, with resistance coming from a bloc of developed and developing nations which is pressing for more ambitious GHG emission reduction targets.
The draft proposal has its critics who suggest that its adoption could see shipping’s emissions of 1 billion tonnes a year of CO2 rise by as much as 16% by 2030. The proposal was rejected by 27 states, including the United States, Pacific island nations, and European countries, who were pushing for tougher targets that would set shipping on a course that is closer to the 1.5 degrees C goal of the Paris Agreement.
In the meantime, during Week 22, Marine Bunker Exchange (MABUX) World Bunker Index continued its upward trend with 380 HSFO index increasing to US$441.20/MT, VLSFO index rising to US$545.43/MT, while MGO index climbing to US$632.23/MT.
In addition, MABUX Amsterdam Rotterdam Antwerp (ARA) LNG Bunker Index, the average price of LNG as a marine fuel in the ARA region, has fallen to US$598.58/MT.
At the same time, the average value of the LNG Bunker Index also decreased by US$4.94, while MGO LS prices have risen by US$26/MT during the same period.
The price difference LNG Bunker Index vs. MGO LS in Rotterdam has narrowed significantly and is us$33.58 now, compared with US$61.69 last week.
Meanwhile, the average weekly Global Scrubber Spread (SS) - the difference in price between 380 HSFO and VLSFO - rose by US$3.80 and reached US$102.25.
At the same time, the average SS Spread in Rotterdam increased by US$1.66 and reached US$109.83 and in Singapore, it also increased by US$4 to US$113.50.
Moreover, the correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs showed this week that 380 HSFO fuel remained undervalued in all four selected ports ranging from US$15 in Houston to US$52 in Singapore, while the most significant changes in underestimation ration were recorded in Houston (up US$8) and Rotterdam (down US$8).
Additionally, VLSFO fuel and MGO LS have also registered an undercharge of this grade at all selected ports, according to MABUX DBP Index.