Industry coalition SEA-LNG said the World Bank’s recommendation to avoid investing in LNG bunkering infrastructure risks slowing down the shipping industry’s transition to decarbonisation.
A report published by the World Bank found that LNG is likely to play a ‘limited role’ in the decarbonisation of the shipping sector, noting its specific niche applications on pre-existing routes or in specific vessel types. In a response, SEA-LNG said the report ‘attempts to prescribe solutions’ and ‘predict the timing’ of future technology development.
[s2If is_user_logged_in()]In the meantime, MABUX World Bunker Index continued the slight downward movement following general trends on the global crude oil market during week 16. Particularly, 380 HSFO index fell to US$418.74/MT, VLSFO Index decreased to US$506.99/MT, while MGO Index declined to US$580.63/MT.
At the same time, the average value of the global scrubber spread (SS) (the difference in price between 380HSFO and VLSFO) changed slightly and stays well below the US$100 mark, at US$91.11.
The global SS in the first four months of the year showed a steady recovery to the levels of early 2020, the pace of which, however, slowed somewhat in April, according to MABUX reports. As a result, as of 20 April, the global SS index rose to US$92.07.
The SS in Singapore increased in the same period US$112, and in Rotterdam to US$100. Meantime, at the end of March, both ports also recorded a drop of the SS below US$100.
Forecasts for a more significant increase of the SS up to US$130-150 in the first half of 2021 have not yet come true, which has slowed the plans for the installation of scrubbers globally.
Additionally, the correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark) in the four largest global hubs showed this week that 380 HSFO fuel was undercharged in all four selected ports ranging from US$5 in Fujairah to US$33 in Singapore unlike last week, where Fujairah recorded an overcharge by US$5.
The situation with VLSFO bunker prices, according to MABUX DBP Index, practically did not change, underpricing in Rotterdam by US$8, in Fujairah by US$23, in Singapore by US$25, while in Houston, VLSFO remains overcharged by US$18.
Last but not least, MGO LS was underpriced in Rotterdam by US$36 and Singapore by US$42. In Fujairah, the DBP Index also recorded an undercharge of US$15. On the other side, in Houston, this type of fuel was overvalued by US$6.
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