Pacific Island Countries are calling on the International Maritime Organisation (IMO) to fully decarbonise the shipping industry by 2050 and to impose a carbon levy of US$100 per ton tax on all greenhouse gas (GHG) emissions on shipping companies by 2025.
The Climate Vulnerable Forum (CVF) held its fourth regional dialogue where eleven participating governments from Asia adopted an outcome statement that supports proposals to clean up the international shipping sector.
The CVF is a group of around 50 of the most climate-threatened nations in the world, including Africa, the Middle East, Latin America and the Caribbean, Asia and the Pacific.
In the meantime, on week 40, the Marine Bunker Exchange (MABUX) World Bunker Index continued its firm upward trend. Particularly, the 380 HSFO index rose to US$521.67/MT, the VLSFO index also grew to US$612.20/MT, while the MGO index increased to US$736.07/MT.
At the moment the average 380 HSFO and MGO LS world prices have fully regained the losses that took place in April-May 2020 and exceeded the price levels registered in early January 2020, according to MABUX.
The MABUX LNG Bunker Index for the Amsterdam-Rotterdam-Antwerp (ARA) region, calculated as the average price of LNG as a marine fuel, did not show any significant changes in the period from 29 September to 6 October, marking a moderate decrease to US$1039.31/MT.
In addition, the average LNG Bunker Index fell to US$1,041.36/MT on week 40. Over the same period, the average MGO LS price in Rotterdam increased by US$24.16/MT and the average price difference between bunker LNG and MGO LS was US$395.52/MT.
"With an uncertain start of Nord Stream 2, gas prices in Europe continue to surge, also due to forecasts of cold weather in northern Europe and lower production of electricity from nuclear generation in France, due to a strike," commented a MABUX representative.
Moreover, the average weekly Global Scrubber Spread (SS) - the difference in price between 380 HSFO and VLSFO - continued a slight decline during the week, amounting to US$93.35.
Meanwhile, the average weekly SS Spread in Rotterdam increased slightly to US$110.33. On the contrary, the average SS Spread in Singapore continued to decline, reaching US$71.33.
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 was overvalued in all selected ports, with the exception of Houston, where the Index recorded an underpricing of US$16.
Regarding the other ports, 380 HSFO was overcharged, in Rotterdam - plus US$6, in Singapore - plus US$39 and in Fujairah - plus US$29.
VLSFO fuel grade, according to the MABUX MBP/DBP Index, was in the undervaluation zone in all selected ports: in Rotterdam by minus US$3, in Singapore by minus US$12, in Fujairah by minus US$14 and in Houston by minus US$2.
Furthermore, the MABUX MBP/DBP Index recorded an undercharge of MGO LS fuel at all selected ports: minimum value in Houston, with a minus of US$17, while the maximum value was in Fujairah, with minus US$54.
Overall, 380 HSFO remains the only fuel type with an overcharge status.