10.7 C
Friday, May 7, 2021
Home The Weekly MABUX Bunker Index Concerns over fuel quality after long VLSFO storage

Concerns over fuel quality after long VLSFO storage

Floating storage of very low sulphur fuel oil (VLSFO) can cause some of these blended fuels to sludge, blocking pipes and filters on board vessels as asphaltenes increase during the period when the fuel remains unused.

According to MABUX concerns for the quality of VLSFO bunker fuel have arisen because of the continued “Weakness in prices and slow demand”.

Some reports suggest that after around 90 days of storage, “Asphaltenes start to precipitate and sludge problems could develop. The sludge formed may then block the ship's filters and pipework. The market is still waiting to see how the quality of the VLSFO that has been stored onboard floating storage for a prolonged period, six-12 months will be impacted in the end,” said MABUX statement.

According to the bunker fuel monitoring service bunker fuel prices have remained under pressure as sluggish demand has hit the industry.

MABUX’s World Bunker Index showed insignificant irregular changes during the last seven days. With the 380 HSFO index rising slightly, from US$303 to US$304/MT, VLSFO falling US$5, from US$367 to US$362/MT and MGO also down from US$446 to US$444/MT.

“The price difference between 380 HSFOs and VLSFOs (the so-called Global Scrubber Spread (GSS)) increased slightly: US$60.67 from US$57.06 a week earlier. In Rotterdam and Singapore the SS also showed moderate growth over the week: US$13 and US$5 dollars, respectively. SS spread in Singapore was US$6-12 dollars higher than in Rotterdam,” said MABUX.

The GSS - the main incentive behind ship operators’ adoption of the scrubber technology - narrowed significantly over the past few months. “As a result, the payback period for the investment has increased drastically”.

In addition, several port authorities over the past year have banned the discharge of wash-water from open-loop scrubbers within their waters.

“The bans are not a significant financial problem for the owners of scrubber-equipped tonnage as they still cover a small section of the world, but some operational complexity is added by the need to carry sufficient 0.50% sulphur fuel for areas where the use of scrubbers is not permitted,” said MABUX.

Latest Posts

Rise in vessel speeds will increase GHG emissions

Demand for cargo on major trade lanes has increased substantially and the returns to the shipping lines and vessel owners have also increased with...

German shipping group commences inland container service in Sweden

The German shipping company Reederie Deymann will introduce the first container barge shuttle service on inland waterways in Sweden between the newly opened Stockholm...

Evergreen back in the black in Q1

Evergreen Marine Corporation achieved a TW$16.17 billion (US$567.13 million) net profit for Q1 2021, reversing the TW$733.15 million (US$24.24 million) net loss in Q1...

CargoGulf starts new North Asia Gulf Express service

Global non-vessel operating common carrier (NVOCC), CargoGulf has announced the launch of a new container liner service between North Asia and the Arabian Gulf,...

DSV offers single sailing to Europe as latest acquisition is announced

Freight forwarder DSV Panalpina has chartered a 1,800TEU vessel and containers for a single journey from Asia to Europe in an effort to help...