BIMCO, on Friday (24 January) published its ‘Shipping number of the week’ reporting on the largest drop in the price level of VLSFO in Singapore:
Singapore has seen one of the largest drops in the price of Very Low Sulphur Fuel Oil (VLSFO), which peaked on 7 January 2020 at USD 740 per metric tonne (MT) and dropped USD 99 to USD 641 per MT on 22 January. The price has also fallen in other ports around the world.
Prices rose in December as shipowners transitioned to the IMO2020 compliant low-sulphur fuel oil causing the VLSFO and High-sulphur fuel oil (HSFO) spread to reach record breaking levels. This trend has started to reserve, with the VLSFO-HSFO spread narrowing in Singapore by USD 55 per MT to 284 per MT on 22 January from USD 339 on 7 January, a 19% decline.
Transitioning past the first wave of IMO2020
The initial uptick in low-sulphur fuel oil prices marked the first wave of IMO2020, whereas the price levels are now declining towards a point of stabilization.
Even given the recent narrowing of the spread, shipping companies are still faced with a massive uptick in fuel oil costs, which is set to affect operating margins in the upcoming quarters, as many companies have little leeway to pass on the additional costs to their customers.
Despite the lower spread, the investment payback period for a scrubber is between half a year to one and a half years, depending on the cost of the scrubber and daily consumption, which allows for substantial fuel oil cost savings for scrubber-fitted ships.
Photo credit: BIMCO
Published: 28 January, 2020
The petitioner and Brightoil reached consent and the petition was subsequently dismissed by an order from the High Court of Hong Kong on Monday, 9 November.
Oil terminal in Skagen fits perfectly with company’s current storage facilities in Copenhagen and Aarhus, enabling it to boaden its portfolio in the region.
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Consults Don Gregory and Mark West of the Exhaust Gas Cleaning System Association for answers.
DMA 0.001%S [Ultra Low Sulphur Marine Diesel] and DMB 0.01%S [Low Sulphur Marine Diesel] available at Port of Tauranga, New Zealand.
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Between November 2016 and October 2017, Mr Tan falsified at least 20 invoices and submitted these invoices to UOB and OCBC, according to court documents obtained by bunkering publication Manifold Times.
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