A new report from the technical and business services organisation Lloyd’s Register (LR) has called for “immediate action on maritime decarbonisation” in order to prevent future supply chain interruptions and minimise disruption to the backbone of world trade.
LR pointed out that transition to zero-carbon shipping will be “among the most significant in the sector’s history” and warned that a lack of regulatory certainty and support from policymakers could see an uncoordinated transition that could lead to significant supply chain disruptions, according to the latest Marine Bunker Exchange (MABUX) report.
The LR study found consensus among maritime experts that shipping companies, their customers and governments need to work together on global solutions before the urgency of the climate crisis forces the sector into disruptive and fragmented changes.
Furthermore, the report highlighted the importance of infrastructure and the availability of new alternative shipping fuels.
In the meantime, the MABUX World Bunker Index showed moderate growth during week 37. In particular, the 380 HSFO index rose to US$468.152/MT, the VLSFO index increased to US$564.83/MT, while the MGO index grew to US$658.44/MT.
Additionally, MABUX LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the Amsterdam-Rotterdam-Antwerp (ARA) region, turned into a moderate decline over week 37 to US$1058.30/MT.
At the same time, the average LNG Bunker Index increased to US$1059.43/MT. The MGO LS average price in Rotterdam for the same period rose by US$15/MT and the average price difference between bunker LNG and MGO LS in Rotterdam reached US$472.10/MT.
Meanwhile, prices for LNG as a bunker fuel in the ARA region continue to rise amid uncertain prospects for the Nord Stream 2 pipeline, limited LNG supplies to Europe and limited pipeline gas supplies from Norway and Russia, and low gas storage levels in Northern Europe.
The average weekly Global Scrubber Spread (SS) – the price difference between 380 HSFO and VLSFO – remained virtually unchanged during the week at US$95.
Furthermore, the average value of SS Spread in Rotterdam elevated to US$109.83. The decline of the average weekly SS Spread in Singapore is continuing, with US$83.67 recorded on week 37.
Correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs over the past week showed that 380 HSFO fuel grade was overvalued in all selected ports.
The minimum overprice ratio was recorded in Rotterdam – plus US$3, Houston – plus US$7, and in Singapore, which was the highest – plus US$46.
Moreover, VLSFO fuel grade, according to the MABUX MBP / DBP Index, was also overcharged at all selected ports with trough levels in Houston – plus US$7 and Rotterdam with a plus of US$8. As for Singapore and Fujairah, VLSFO overpricing was plus US$17 and plus US$18, respectively.
MGO LS remains the only fuel grade that, according to MABUX MBP / DBP Index, was underpriced at all selected ports on Week 37: the minimum margin in Houston – minus US$4 and the maximum in Singapore – minus US$30.