2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain

2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain

BunkerEx has investigated where existing 3.5% HSFO bunker demand will go, how this will be replaced and what this means for prices.

 

The impact on 3.5% HSFO

The future cost of 3.5% HSFO could go as low as $220/mt. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. $114/mt). In order to compete, 3.5% HSFO will need to be priced at parity with LNG and coal which results in a price of approximately $220/mt.

 

What about scrubber demand?

Even with the uptake in retrofit scrubber demand and the widespread installation on newbuilds, the most optimistic figures […] Read more

BunkerEx: Our View on 2020 (Hint: Say NO to Scrubbers, for now…)

BunkerEx: Our View on 2020 (Hint: Say NO to Scrubbers, for now…)

It’s the question on everyone’s mind: how best to deal with the IMO’s 0.5% sulphur cap regulations?

With just over 18 months to go until the deadline, decisions need to be made on capital investments for scrubbers and new builds now. Trafigura recently announced it would install scrubbers on all it’s new build tankers arriving in Q1 2019.

Over the last few months, BunkerEx has been quietly forming a view based on extensive conversations with various stakeholders, research papers, articles and conferences. Our conclusion is that for now, scrubbers are not the answer.

This is a view shared by giants such as Maersk, […] Read more

Analysing the BIMCO Bunker Contract

Analysing the BIMCO Bunker Contract

“Should I use the BIMCO contract for my bunker purchasing?”

 

As brokers, this is a question we are asked more and more as time goes on. So we thought it best to write about the more interesting clauses of the contract, based on our experience. Below we explain what BIMCO is and discuss the more contentious points of their standard bunker contract.

 

What is BIMCO?

BIMCO is a members club for almost anyone connected to shipping (owners, suppliers, agents and brokers). The idea of BIMCO has always been to secure better deals and create standardised agreements for the shipping industry. Members come together […] Read more

Is it better to buy bunkers spot or on contract?

Is it better to buy bunkers spot or on contract?

Bunker buyers often debate on the best way to buy their fuel. Is spot better, open to the crazy spikes we sometimes see when there are supply shortages or credit squeezes? Or is it better to play it safe with a contract, potentially losing out on gains if premiums drop?

 

Below we explore the pros and cons of each method to help you better make a decision.

 

For more help on any of the below or for more specialised advice, visit us at www.bunker-ex.com or email us at brokers@bunker-ex.com.

 

Spot Purchasing

This is the most common form of bunker purchasing. We estimate that […] Read more

Keeping up with the latest ISO 8217 specifications

Keeping up with the latest ISO 8217 specifications

The ISO 8217 specifications for marine fuels are constantly evolving. In the last 12 years we have had 4 different editions each with minor improvements to the previous version. In this article we discuss the changes in ISO 8217:2017, suppliers willingness to switch and why it’s important for the industry to adapt.

 

Links to the last 3 editions are available below:

 

ISO 8217:2005
ISO 8217:2010
ISO 8217:2012

 

ISO 8217:2017 – what’s different?

 

Fatty Acid Methyl Esters [FAME]

Three new grades of distillate fuel have been added, all starting with the letters ‘DF’ which stand for ‘Distillate FAME’: DFA, DFZ and DFB.

These all allow up to 7% FAME […] Read more