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Argus Media Viewpoint: European bunker spreads to favour scrubbers

Early positive vaccine news has already led to signs of this — the price of 0.5pc fuel oil in Rotterdam has increased by more than $100/t since the start of November, it said.

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George Collard of global energy and commodity price reporting agency Argus Media on Thursday (31 December) published an article on how the price spread between high sulphur and low sulphur fuel in Europe could favour the use of scrubbers based on bunker fuel price trends after the announcement of the Covid-19 vaccine:

Rising 0.5pc sulphur marine fuel prices in Europe in 2021 will give a boost to shipowners that invested in exhaust gas cleaning systems, or scrubbers, to enable the continued use of 3.5pc sulphur product (HSFO). Use of the latter may have hit a ceiling, and demand for the 0.5pc product, which in 2020 became the most popular marine fuel, will largely be dictated by Covid-19 developments.

Demand for transport fuels, including bunkers, is likely to rise if vaccines roll out and global trade recovers. Early positive vaccine news has already led to signs of this — the price of 0.5pc fuel oil in Rotterdam, Europe’s biggest bunker port, has increased by more than $100/t since the start of November. 

Should this continue, the difference between the price of 0.5pc and 3.5pc sulphur fuel oil — known as the scrubber spread — is likely to widen, lessening the payback times for those shipowners that invested in scrubbers. The premium of 0.5pc to 3.5pc (HSFO) in Rotterdam was more than $300/t at the start of January, but since the crude price tumbled in March it has not been above $100/t. It has mostly been below $70/t since the spring and passed beneath $30/t on several occasions. This narrow spread has seen orders for the cleaning systems drop off. Classification society DNV GL said that the global fleet will have 4,384 ships either with a scrubber or with one on order by the end of 2020, but only a further 155 are scheduled for fitting in 2021.

The price of 0.5pc fuel oil in Europe could also receive support in 2021 if refining margins for non-marine transport fuels improve as demand recovers. Dependent on how run rates adjust, 0.5pc fuel oil production could fall.

Demand for HSFO has been rising globally over the past few months as ships equipped with scrubbers return to the water, and the price of HSFO in Rotterdam has risen by over $70/t since September. HSFO sales in Rotterdam were 11pc higher in the third quarter of 2020 than the second quarter, and in October these topped 1mn t monthly in Singapore for the first time in the year.

A vaccine-driven revival of the cruise sector could boost HSFO demand. DNV data show that 220 cruise ships have scrubbers, around half the global fleet. Covid-19 has hit the cruise sector hard in Europe. Cruise ship visits to Spanish ports fell to 631 in the first 10 months of 2020 from 3,500 a year earlier, and nearly 500 of the 2020 total were in the first quarter.

But, given the immense task of widespread Covid-19 vaccinations, any cruise-driven boost to HSFO demand will happen later in 2021 if at all.

Sales of marine gasoil with 0.1pc sulphur (MGO) may continue to fall in Europe. MGO was a popular choice at the turn of 2020 when the International Maritime Organisation (IMO) 0.5pc sulphur cap came into force, because of concerns about the quality of new IMO-compliant blends. There have been some quality issues with 0.5pc fuel oil, but these have not been widespread.

MGO sales in Rotterdam were 26pc lower in the third quarter of 2020 than in the first three months of the year, and the lowest for any quarter since the start of 2017. 

Alternative fuels like biofuels, LPG and LNG will continue to make inroads into Europe’s bunker market in 2021. Trading firm Trafigura recently said that it plans to supply marine biofuels in Rotterdam. LNG sales passed 50,000m³ in Rotterdam in the second quarter of 2020, and look likely to total at least double 2019 levels in the whole year. 

The Mediterranean’s largest bunker port, Gibraltar, wants full-scale LNG bunkering to begin in 2021, and Turkish state-owned gas firm Botas plans to start providing LNG as a bunker during the year.


Photo credit and source:
Argus Media
Published: 4 January, 2020

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Incident

MPA: 25 crew rescued after abandoning “MSC HERMES III” east of Vietnam

MRCC Singapore coordinated the rescue after receiving a distress alert at about 8.45am as the vessel was within Singapore’s Maritime Search and Rescue Region.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said all 25 crew members from the Liberia-registered container vessel MSC HERMES III were rescued on 22 September 2026. 

The Maritime Rescue Coordination Centre (MRCC) Singapore coordinated the rescue after receiving a distress alert at about 8.45am (Singapore Time). 

“The vessel was within Singapore’s Maritime Search and Rescue Region (MSRR), about 300km east of Vietnam,” MPA said in a statement. 

MRCC Singapore immediately issued a broadcast requesting vessels in the vicinity to render assistance. Three vessels responded, and MSC RUBY recovered all 25 crew members after they had abandoned MSC HERMES III in a lifeboat. 

“All 25 crew members are safe, with no injuries reported,” MPA said. 

“MRCC Singapore is coordinating with the Vietnamese MRCC on arrangements for the rescued crew members to return safely to shore.”

 

Photo credit: Manifold Times
Published: 23 September, 2026

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Alternative Fuels

GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

Equinor brings extensive experience to partnership as a vessel charterer and marine fuel supplier, including chartering dual-fuel LNG and methanol tankers, testing biofuels and supplying methanol.

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GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

The Global Centre for Maritime Decarbonisation (GCMD) and Equinor on Tuesday (22 September) announced a five-year Impact partnership.

The partnership brings together GCMD’s capabilities in conducting real-world maritime pilots with Equinor’s experience as a charterer, energy provider and developer of low-carbon solutions.

Together, the organisations will leverage their complementary expertise to help address technical and operational gaps in scaling alternative marine fuels and supporting the development and uptake of other maritime decarbonisation solutions.

GCMD’s work on alternative fuels, including biofuels, ammonia and methanol, focuses on two critical aspects of deployment: operational safety and robust monitoring, reporting and verification (MRV). Its pilots and studies are generating operational data to support safe bunkering and handling of these fuels. 

At the same time, its assurance work seeks to strengthen confidence in quantity, quality and GHG emissions abatement.

“Equinor brings extensive experience as a vessel charterer and marine fuel supplier. This includes chartering dual-fuel LNG, LPG and methanol tankers, testing and using biofuels and supplying methanol to the maritime sector,” GCMD said.

Equinor is also piloting the use and supply of ammonia as a marine fuel, contributing to the development of associated safety, regulatory and bunkering arrangements.

Combining these perspectives can help address practical barriers to alternative fuels deployment while strengthening assurance across emerging marine fuel value chains.

Beyond alternative fuels, GCMD is working to accelerate the adoption of solutions that can reduce emissions from the existing fleet, including energy efficiency technologies (EETs) and onboard carbon capture and storage (OCCS).

GCMD’s work on EETs includes quantifying real-world fuel savings from technologies such as wind-assisted propulsion systems and developing financing mechanisms to scale their adoption. In OCCS, Project CAPTURED demonstrated an end-to-end value chain for onboard captured and liquefied CO₂, generating evidence that contributed to the recognition of captured CO2 under the EU ETS and in-principle support at the IMO for recognising carbon mineralisation as permanent storage.

Equinor brings decades of experience in offshore CO₂ storage, including its role in the development and operation of Northern Lights, the world’s first cross-border CO2 transport and storage facility, where liquefied CO₂ is transported by ship to an onshore receiving terminal before it is sent by pipeline for permanent geological storage beneath the North Sea.

Through the partnership, GCMD and Equinor will explore opportunities to combine their respective capabilities and experience to support the deployment and scaling of maritime decarbonisation solutions.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 23 September, 2026

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Decarbonisation

Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels.

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Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Wah Kwong NatPower (WK NatPower) on Tuesday (22 September) said it has signed a Memorandum of Understanding (MoU) with Aberdeen Restaurant Enterprises Limited (AREL) to explore the electrification of piers, vessels and supporting energy infrastructure in the Aberdeen area of Hong Kong.

Against the backdrop of the HKSAR Government’s latest policy direction to advance green shipping, smart port development and shore power infrastructure, WK NatPower and AREL will explore the development of an integrated marine electrification ecosystem in the Aberdeen and Shum Wan areas. 

The collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels for future transport and tourism services.

The initiative supports Hong Kong to become a leading hub for sustainable maritime innovation while contributing to the revitalisation of one of the city’s most iconic waterfront communities. As an initial phase of the collaboration, the two parties will explore the opportunity for the construction of a series of electric vessels and transport vessels. 

The initiative will also examine the potential deployment of the ApliAber® electric vessel fleet as a new benchmark for sustainable waterfront mobility and hospitality experiences in Hong Kong.

Vincent Ni, General Manager of WK NatPower, said: “This MoU marks an important step in supporting Hong Kong’s marine energy transition. Aberdeen has long been an iconic part of Hong Kong’s maritime heritage, and we are delighted to explore opportunities to develop integrated shore power and vessel electrification solutions that can support a cleaner and more sustainable future for the harbour.”

Wong Tai Yu, Director of AREL, said: “Through this collaboration, we look forward to exploring practical ways to introduce cleaner energy, electric vessels and sustainable waterfront experiences, while supporting the revitalization of Jumbo Kingdom® for future generations.”

 

Photo credit: Wah Kwong NatPower
Published: 23 September, 2026

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