Despite strong economic data from China, a weaker U.S. dollar and reports of more economic stimulus discussions in key markets, there are no drastic changes in registered bunker prices.
This lack of change follows predictions that global bunker demand may have dropped by as much as 17% this year. At certain locations, the impact of reduced shipping activity has greatly impacted demand.
The World Bunker Index MABUX has decreased slightly over the past week. The 380 HSFO index fell from 316 to 312 USD/MT (-4.00 USD), VLSFO lost 5.00 USD: from 366 to 361 USD/MT, MGO declined by 6 USD: from 444 to 438 USD/MT.
August average SS Spread in Rotterdam was at 46.46 USD (min. 35 USD/max. 55 USD). Monthly average SS Spread at the port of Singapore was 15 USD higher – 61.83 USD (min. 56/ max. 71). SS difference in both hubs narrowed to 7 USD on Sep.02 while was up to 22 USD again on Sep.03.
In other news, a new emission control area (ECA) for the shipping industry was launched this week.
From Sep 1, the sulfur limit has been cut from the global 0.50% cap to 0.10% for ships in South Korea’s new ECA. The ports of Incheon, Oyeongtaek Dangjin, Yeosu, Gwang-yang, Busan and Ulsan are all included in the new ECA.
At first, ships will be required to comply with the new limit within one hour of anchoring or mooring. From the start of 2022, they will be required to use 0.10% sulfur fuels at all times within the area.
Currently, South Korea does not impose restrictions on the discharge of washwater from open-loop scrubbers.
It is predicted that the decline in marine fuel demand will have established a bottom during Q3 of this year, taking into consideration the prospects for a COVID-19 vaccine and its availability for mass distribution.
