The outright price of delivered very-low sulphur fuel oil (VLSFO) bunkers in Singapore rose by $63.90/t to $858.50/t today, a record surge since Argus started assessing the grade on 1 October 2018.
Bunker prices rose firmly in line with crude prices, which reacted to an escalation of the ongoing military conflict between Ukraine and Russia.
Ice Brent futures at 16:30 Singapore time reached $111.14/bl, a daily increase of $10.66/bl.
Several market participants expressed concern over credit lines, which do not necessarily go up when prices rise. “Suppliers and traders will likely be hesitant to increase credit lines to owners and charterers, effectively reducing their buying options,” a London-based broker said.
A company with a credit line of $1mn, for example, at today’s price, would only be able to buy 1,165t of product.
Concerns are mounting over payments for vessels loading cargo from Russia, which may in turn result in an inability to pay for bunkers. This could then have severe negative ramifications for traders, who play a key role in providing credit to the market.
A possible credit squeeze was also feared ahead of the 0.5pc sulphur mandate by the International Maritime Organisation (IMO) which went into effect on 1 January 2020. Those fears quickly subsided because of the Covid-19 pandemic, but are now resurfacing as a global economic recovery coincides with war in Europe which has sent crude prices soaring.
By Sammy Six
Photo credit and source: Argus Media
Published: 4 March, 2022
Taiwan first started implementing the sulphur cap in 2018 and even offered a subsidy to those who wish to switch to compliant fuel; SOx emissions have since reduced by 40%.
Company believes market and business partners ‘likely to have greater confidence and comfort in continuing business dealings’ if placed under judicial management, says Director.
Chalmers, IVL, MAN Energy Solutions, Menon, Litehauz working together with DNV on the Nordic Council of Ministers funded project which will run for four years.
Introducing incentives for bunker fuel suppliers to make low- and zero-carbon fuels available in the market is a prerequisite for the decarbonisation of the sector.
Despite the weekly stockbuild, lead times for bunker fuels remain long at Singapore port where demand has picked up at the beginning of this week, increasing lead time.
South Korean and Japanese governments have submitted statements to the EU against the application of the EU-ETS for shipping, reports Reuters.
Program introduces periodic assessments, mass flow metering data analysis, and regular training for relevant key personnel to better handle the MFMS to ensure a high level of continuous operational competency.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
‘MPA had immediately contacted the relevant bunker suppliers to take necessary steps to ensure that the relevant batch of fuel was no longer supplied. Further investigations are currently on-going,’ it informs.
