The Singapore Exchange (SGX) on Tuesday (5 May) said the SGX Platts Marine Fuel 0.5% FOB Singapore contract saw increased activity in March and April on the back of a surge in SGX freight volumes.
Activity over the first four months of the year totalled 385,000 contracts, up 9% from the same period a year ago, with March performing particularly well at over 120,000 contracts.
Volumes were driven by heightened market uncertainty and supply chain disruptions resulting in increased hedging demand, it noted.
0.5% Marine Fuel volumes correspondingly rose to almost 180,000 metric tonnes in March and April, 200% higher than total volumes since launch in November 2019, with open interest now standing at over 100,000 metric tonnes.
Bunker fuel prices have declined sharply this year (from $600/MT to $200/MT), in line with crude oil, as demand was pummelled by the Covid-19 pandemic.
SGX said its suite of fuel oil contracts offers bunker and freight clients with effective risk management tools to hedge their bunker fuel price exposure during this period of heightened volatility.
SGX explains its freight and fuel oil contracts provide the shipping industry with critical risk management tools to manage price volatility, all on a single platform.
Thus, it remains the largest clearing venue for dry bulk freight market with 60% market share in the first four months of the year, with clients benefitting from cross margin efficiencies of up to 40% between freight and low sulphur fuel oil contracts.
Published: 6 May, 2020
The local bunkering sector has adapted to IMO 2020 requirements and LSFO is now available at more than two earlier locations, notes bunker supplier Trillion Energy.
Claiming USD 108,887.87 for the supply and delivery of 310.00 mt of low sulphur marine gas oil at the Port of Jeddah on or about 23 February 2020.
A sanitisation expert offers Manifold Times a summary of the processes involved in disinfecting a ship together with the equipment and products used in the operation.
‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.
Laboratory looking to collaborate with Singapore bunker surveyors to roll out COVID 19 testing service, which has been successfully adopted by land-based industries, to the maritime sector.
Sinfeng Marine Services filed an application to the Court of Appeal to withhold information from the liquidators on October 2019; the appeal was dismissed a month later.