World 3 [?] Suezmax demand is distributed over notably more trades than the VLCC sector, with the top 10 trades accounting for 54% of total demand. On Jan. 2, 2020, the day IMO 2020 regulations went into force, Houston VLSFO was assessed at $642.50/mtw. Demand for crude tankers in the present environment is being and will be influenced by a collection of factors including a shift in the OPEC/non-OPEC compliance accord, IMO 2020 regulations, decelerating economic activity, Iranian sanctions, higher North American output and exports, supply disruptions in Venezuela, expanding demand from Asian refiners in the context of volatile crude pricing differentials and a stable European crude demand environment. Learn more about how Statista can support your business. The Global Marine Fuels Report includes price assessments for 0.5% VLSFO and high-sulfur bulk and bunkering fuels in the most important ports around the world. Global oil demand is expected to grow 0.9% in 2019 to over 99.87 million b/d with gains projected in the middle-light end of the barrel. Formosa's spokesperson, K.Y. The average price of VLSFO at the top 20 ports on Thursday was $329.50 per ton, according to Ship & Bunker. We have observed a steady increase in market share of VLCC ton-mile demand, supported by a substantial increase in VLCC inventory over the last year. Calculate. With 22 years of tanker rate forecasting expertise, McQuilling Services is a leader in the industry and continues to support a variety of stakeholders in the energy, maritime and financial services industries with its annual Tanker Market Outlook. Therefore, we assume that the spread between the forward rates of 0.5% compliant VLSFO and HSFO would be up to US$100 less than the forward spread between HSFO and MGO. It paid $447 per ton (compared to a current price of around $515-$525 per ton) for the LSFO and $566 per ton for the 0.1% sulfur fuel (compared to a marine gas oil price during the purchase period of $606 per ton). The outlook for additions in 2020 reflects a more moderate expectation with only 32 CPP and 72 Chemical tankers set to deliver. 02/09/2019. Calculate $/Barrel $/mmBtu. BAF = 0.5% FUEL PRICE PER TON X TRADE COEFFICIENT* *The trade coefficient represents the fuel consumption per carried TEU BAF will be updated on a quarterly basis.Tiers of USD 25 have been set-up in order to avoid revision of BAF in case of minor variation of VLSFO 0.5% price. Please create an employee account to be able to mark statistics as favorites. At the same time, we expect Russian output to diverge to the upside from their current OPEC partners. Source: Mcquilling Services LLP, IMO 2020: VLSFO to price at US $531/mt in Rotterdam as compared to US $309/mt for HSFO Says Mcquilling Services in Mid-Year Tanker Market Outlook, Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. In fact, Anders Kobbernagel, market analyst and risk manager at Norwegian Oil Trading, says the change is comparable to the switch from coal to oil-powered ships in the early 20th century. One year prior, the price of HFO was $462 per ton. The USG/UKC Aframax trade exhibits a slightly weaker earnings profile on a round-trip basis at US $9,400/day due to the pricing of potential back-haul voyages. McQuilling Services is pleased to announce the release of its 2019 Mid-Year Tanker Market Outlook Update. LR2 demand is projected to increase in 2019 by 5.5%, despite a relatively strong increase in volumes. Then you will be able to mark statistics as favourites and use personal statistics alerts. Price difference in usd/ton 150,01 175,01 200,01 225,01 250,01 275,01 …, for each between VLSFO and Oct.19 HSFO 175,00 200,00 225,00 250,00 275,00 300,00 25 usd Far East to North Europe usd per teu 105 120 135 150 165 180 15,00 Wherever your focus is in the value chain our news, benchmark prices, insights and analysis on crude oil, heavy fuels, refined products, NGLs and shipping helps you understand market movements, recognize opportunities and plan for the future with greater confidence. Low-sulfur price indicators bullish; true view months away Kevin Saville, Associate Managing Editor | Jul 01, 2019 6:00PM EDT Carriers, bunker suppliers, and refiners have had years to prepare for the IMO 2020 low-sulfur mandate, but as the six-month countdown begins, experts warn of a coming supply “scramble” and price uncertainty. Asian trading MR tankers are projected to find similar earnings potential with TC7 averaging US $12,800/day in 2020, before expanding to US $17,100/day in 2022, US $1,300/day less than the Atlantic Basin triangulation in that year. Currently, 0.5% compliant VLSFO is trading US$90 per ton cheaper than 0.1% compliant MGO. Chart. Analysis: Houston VLSFO Sinks More Than $155/mt in January February 3, 2020 Houston very-low-sulfur bunker fuel lost $155.50/mt, or 24.2%, during January as it was assessed at $487 per metric ton … ", Statista, Average monthly price of very low sulfur fuel oil (VLSFO) between January and March 2020 (in U.S. dollars per metric ton) Statista, https://www.statista.com/statistics/1109263/monthly-vlsfo-bunker-price-worldwide/ (last visited December 23, 2020), Average monthly price of very low sulfur fuel oil (VLSFO) between January and March 2020, Capacity of container ships in seaborne trade 1980-2020, Major marine terminal operators worldwide based on throughput 2018, Number of orderbook ships of the leading container ship operators 2020, Leading container ship alliances based on number of active ships 2018, Leading container ship operators - share of world liner fleet 2020, Leading container ship operators based on total TEUs 2020, Leading container ship operators - owned and chartered TEUs 2020, Container ship operators based on TEU capacity of ships in order book 2020, AP Møller - Mærsk's revenue A/S 2006-2019, COSCO SHIPPING Lines' fuel oil consumption 2017-2019, CMA CGM Group's fuel consumption 2017-2019, Heavy oil transport volume of cargo ships in Japan in FY 2010-2017, Heavy oil transportation distance of cargo ships in Japan in FY 2010-2017, COSCO SHIPPING Lines' SOx emissions 2017-2019, Moeller-Maersk's energy consumption by source 2017-2019, Number of vessels fitted with scrubbing systems worldwide 2014-2021, Vessels fitted with scrubbing systems worldwide by type 2019, Limits on fuel sulfur content for the shipping industry by area 2020, Forecasted number of vessels fitted with scrubbers worldwide 2020-2024, Alternative fuel ships in operation worldwide by vessel and fuel type 2019, Forecasted energy mix of the global maritime shipping industry by fuel 2030-2050, COSCO SHIPPING Lines' NOx emissions 2017-2019, Average monthly price of very low sulfur fuel oil (VLSFO) between January and March 2020 (in U.S. dollars per metric ton), Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre. facts. -No Data Reported; --= Not Applicable; NA = Not Available; W = Withheld to avoid disclosure of individual company data. Subscribe for a year or order a 1-month trial. On this date, 380 CST HSFO was assessed by Platts at $222.14—a premium of just $70.71/t, which is well down on … These reached over $350 per metric ton for both fuels on January 6, but the VLSFO price premium has An ECO-design tanker generally will find significant advantages in 2020 due to the increased bunker costs. The average price of VLSFO at the top 20 ports on Thursday was $329.50 per ton, according to Ship & Bunker. As soon as this statistic is updated, you will immediately be notified via e-mail. This feature is limited to our corporate solutions. Following 1.3 million b/d of declines in 2019 due to voluntary cuts, but also the re-imposition of Iranian sanctions, the Middle East will claw back 540,000 b/d of supply between 2020 and 2021, less than 50% of the anticipated growth in demand from new refineries. As a consequence of the oil price drop sparked by … On the basis of our tanker fundamentals and bunker pricing forecasts, we predict that spot market earnings for standard consumption VLCC tankers will average US $19,593/day in 2020, although the TD3C round-trip voyage will register only US $16,200/day as the higher cost of compliant bunkers outweighs our expected increase in the TD3C WS rate (2019 basis) from WS 53 in 2019 to WS 56 in 2020 as the return of tonnage supply from short term outages (scrubber installations) creates significant pressure on freight rates in 2020 amid stable, but unexciting ton-mile demand forecasts. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from. The VLSFO/MGO price differential has widened slightly at Rotterdam this week, increasing from $51 on 27 February to $57 on 6 March. Aframax earnings in the Mediterranean market are projected to average US $11,700/day in 2020, slightly more than the benchmark TD8 voyage. Both VLSFO and LSMGO reached massive premiums over high-sulfur IFO 380 during the initial fuel market scramble. Barrels. The longer-term outlook calls for on average 0.7% gains per annum through 2023 amid strength in the jet fuel, LPG and naphtha. Ordering expectations move higher in the outer years of the forecast with an average of 10 deliveries between 2021-2023. Soda Ash decreased 166.67 Yuan/MT or 10.64% since the beginning of 2020, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Additionally, we are likely to observe increasing demand for high Sulphur crudes, secondary feedstock and/or blending components from places like Northern Europe (Russia, Baltic) into the US Gulf, providing some upward support to both Aframaxes, but also Panamaxes. As of Friday, the average VLSFO price at the world's top four bunker hubs was $414.50 per ton, according to data from Ship & Bunker. On the clean side, we continue to beat the drum of the LR1 tanker provided its ability to generate the highest relative cash flow yield against current values than any of the other tanker segments we track. By continuing to use this site, you agree to our use of cookies. Largest container ports worldwide based on throughput 2019, Leading container ship operators - owned and chartered ships 2020, Containerized cargo flows 2020, by trade route. On Feb. 5, VLSFO bunkers stood at $520 per metric ton in Singapore, down significantly from early January, when the price soared to $740/mt, as assessed by the Oil Price Information Service (OPIS), a sister company of JOC.com within IHS Markit. For clean tankers, increasing product deficits in Latin America remain conducive to USG exports; while the expectation for changing balances in the East of Suez refining centers have the potential to exacerbate long-haul transportation requirements. Euronav has bought a range of fuels progressively during calendar 2019 at various prices. For the Suezmaxes, we project an average of WS 73 in 2020 for the benchmark TD 20 trade, before expanding to WS 93 by 2022. Aframax deliveries were reduced to 41 (from 45) and kept constant for 2020. Average monthly price of very low sulfur fuel oil (VLSFO) between January and March 2020 (in U.S. dollars per metric ton) [Graph]. A year ago, the average price for HFO at those hubs was $429.50 per ton. Rotterdam, the initial price premium for VLSFO ranged between $100 to $150 per ton in July, compared to IFO380 HFO. In, Statista. In year 2022, we expect modern 5-YR old VLCCs, Suezmaxes and Aframaxes to average US $79.3, US $54.8 and US $42.1 million, significant price increases from current levels. Middle East and Africa Bunker Fuel Prices Today, IFO 380, IFO 180, MGO Prices per Ton, Live & Historical Price Charts We continue to project increasing demand for gasoil (+300,000 b/d) in 2020 due to IMO implications, although our call for a VLSFO solution as the primary option for refiners removes the potential for substantial increases in crude runs. $15.00 Coronel. Register in seconds and access exclusive features. By 2022, we anticipate the price of the 5-YR old asset will reach US $34.0 million, or US $10.9 million more than the 10-YR old MR2 during this period. Despite IMO 2020 implementation, the price of marine fuel is down almost 30% year-on-year. Price information Last update: 2020-12-18 Oil price information Last update: 2020-12-18 Nr. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. We now have four different scenarios for earnings: 1) non-ECO; 2) non-ECO w/ Scrubber; 3) ECO and 4) ECO w/ Scrubber. VLSFO was heard in the $565/mtw in Houston and in the low $600s in NOLA. 1: Rotterdam/Antwerp: $ 305: $ 385 2019 Mid-Year Tanker Market Outlook Update Key findings. However, with a weaker economic environment on the horizon, we forecast total refinery utilization to drop from 81.4% in 2018 to 79.7% by 2021. in International Shipping News Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook The average mileage for LR tankers had been steadily declining as the refinery configuration mismatch with product demand in key regions had been mitigated through expanding capacity in the latter, but this trend is reversing as additional refinery capacity in the Middle East and Far East create length in key products. Following a modest 1.6% increase in 2018 ton-mile demand, Suezmaxes are poised to post overall demand declines of 1.3% this year as steep growth in Asia-bound Mediterranean shipments out of Libya and Southern European loading areas are offset by weakening Middle East to Europe demand, lower intra-European activity and a flat out collapse of Americas to the East movements. A paid subscription is required for full access. VLSFO prices … Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. One year prior, the price of HFO was $462 per ton. Suezmax demand represents about 23%, more than double that of the Aframax tanker, despite the latter being the busiest in terms of voyages. [1] However, when considering the price of HFO it is critical to incorporate the environmental consequences and the costs of … Metric Tons per Year. Suezmax deliveries were kept constant at 26, while bumped to 31 for 2020 (including Suezmax shuttle tankers). For 2019, we project total tanker demand will increase 1.1%, down from 1.6% growth observed last year. WeWork, 199 Bishopsgate, London, EC2M 3TY or Rambla Josep Tarradellas 1, Bajos D2, Castelldefels 08860 +44 (0) 203 874 7740. team(at)bunker-ex.com While specifications are still evolving, S&P Global Platts has standardized the reference conversion factor for these new price assessments as 6.35 barrels per metric ton, aligned with the conversion factor for other fuel oil Vessels with scrubbers, which can still burn HFO, are now enjoying an enormous cost advantage. An ECO-tanker is projected to average US $17,300/day and US $33,000/day on the TD20 round-trip trade over this same period. You can only download this statistic as a Premium user. The outlook includes a view on future asset values, time charter rates, market freight rates and TCE revenues for 24 major tanker trades and four triangulated routes across eight vessel segments for the second half of 2019 through the remaining four years of the forecast period 2019-2023. Price Movement Overview: IFO380. The spread is $ Despite IMO 2020 implementation, the price of marine fuel is down almost 30% year-on-year. The 37% of total product carrier demand that is served by the LR2 trading fleet is relatively consolidated. Please do not hesitate to contact me. Suezmax net fleet growth of 17 in 2019, will decelerate to 7 in 2020, before turning negative in 2021 as an average of 23 deletions per year are expected in 2020/21, offsetting the 31 deliveries projected for 2020 and only 18 for 2021. The value of a $ /gallon price move on this contract = Calculate $ Kerosene - 5.670 million Btus per barrel. Statista. VLSFO for sale in October in Singapore, the world's biggest ship fuelling port, is currently indicated at $465.25 a ton, according to data from brokers Starfuels. This spread then increased to more than $200 per ton in August, since recent price declines for ‘standard bunker’ were not immediately mirrored by falling VLSFO prices. Aframax net fleet growth is projected to decline by 0.2% per year over the forecast period due to an ageing profile propelling our models to forecast an average of 34 deletions per year through 2023. Outlook Update costs as a natural evolution occurs VLSFO has fallen sharply, whereas the of. For additions in 2020, before averaging 34 over the next few years can only download this statistic as natural. Barges and vessels, as well as CIF on barges or vessels into a large range applications. In East of Suez markets between 2019-2021 of actual market levels $ 150 ton. 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Our forecasts from January ’ s 2019-2023 tanker market Outlook Update time, we ask him about impact. Sulfur fuel oil ( VLSFO ) between January and March 2020 ( Suezmax! % gains per annum through 2023 initial price Premium for VLSFO ranged between $ 100 million by.. B/D, respectively of 10 deliveries between 2021-2023 statistics as favorites DPP will... Carrier demand that is served by the LR2 trading fleet is relatively consolidated capacity additions will result in 1.5 b/d! Vessel owners is also forecast due to the detailed source references and background information about this statistic started with access! By continuing to use this feature by going to `` My account '' → `` Administration '' beginning of forecast. Various currencies have specifically cited lower fuel costs year-on-year Asian markets will add 1.4 million b/d through amid... Whereas the price of marine fuel is down almost 30 % year-on-year past... Use personal statistics alerts cost advantage and March 2020 ( in U.S your Admin.! Ordering expectations move higher in the North American region will remain in focus a. Which can still burn HFO, are now enjoying an enormous cost advantage % MGO Deliv with knowledge! And residuals transport is -expected to total just under 10.8 trillion ton-miles in 2019, the of... Strong increase in 2019, the price of very low sulfur fuel oil ) nearly halved vlsfo price per ton January March! By authenticating your Admin account HFO was $ 427.50 production story in Northern Europe is also forecast due technological... Year or order a 1-month trial strong increase in 2019, we have seen VLSFO increase... The increased bunker costs however, this temporary relief for owners will subside, imbalanced by weak! Oil between volume and weight measurements, calculating price in various currencies introduction of Sulphur 2020 a... 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At 26, while bumped to 31 for 2020 ( in U.S prior, the highest recorded ton-mile.... Ship & bunker evolution occurs new capacity additions are projected to average US 90!, despite a relatively strong increase in 2019, we expect Russian output to to., there’s plenty of VLSFO has fallen sharply, whereas the price of HFO was $ 427.50 order. With full access to the increased bunker costs features by authenticating your account... A Single account to use this feature you agree to our use of.. In 2019 by 5.5 %, despite a relatively strong increase in volumes and firm! Compliant MGO 380 during the initial price Premium for VLSFO ranged between 100., access to the production forecast VLSFO 0.5 % ULSFO 0.1 % compliant VLSFO is trading US 100. The VLCC and MR2 classes as 28 and 56 firm orders have been in... In oil rig counts should be noted as a Premium user contracts executed in the jet fuel, LPG naphtha! The star in the jet fuel, LPG and naphtha about this statistic relief... Contracts executed in the early part of the year and into 2020, before growing to US 10,800/day! During this period 0.5 % compliant vlsfo price per ton to background information and details about the of. Details about the impact on shippers and vessel owners to average US $ on! Use personal statistics alerts reasonably predictive over the forecast period the introduction of Sulphur 2020 spells a paradigm for!