Both VLSFO and LSMGO reached massive premiums over high-sulfur IFO 380 during the initial fuel market scramble. MR2 newbuilding contracts (IMO II/III) are expected to average US $38.6 million in 2020, about US $8.0 million more than our call for a 5-YR old MR2 tankers. Directly accessible data for 170 industries from 50 countries Despite IMO 2020 implementation, the price of marine fuel is down almost 30% year-on-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 Crude and residuals transport is -expected to total just under 10.8 trillion ton-miles in 2019, the highest recorded ton-mile demand. This feature is limited to our corporate solutions. McQuilling Services is pleased to announce the release of its 2019 Mid-Year Tanker Market Outlook Update. By continuing to use this site, you agree to our use of cookies. On average, mileage transited by DPP tankers in 2018 measured 4,681 per ton transported and thus far in 2019, we record similar levels (4,703), defying the market’s expectations for an increase in long-haul requirements as support from the US Gulf and Brazil are being offset by a significant reduction in Middle East flows to the West and a decline in Caribbean long-haul export activity. Ordering expectations move higher in the outer years of the forecast with an average of 10 deliveries between 2021-2023. Currently, 0.5% compliant VLSFO is trading US$90 per ton cheaper than 0.1% compliant MGO. A year prior, the price of HFO was $427.50. Khor Al Zubair. April 20, 2020. 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. 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. An ECO-design tanker generally will find significant advantages in 2020 due to the increased bunker costs. Liner companies including Maersk have specifically cited lower fuel costs as a major profit driver. Following 62 VLCC deliveries in 2019, we project an additional 45 deliveries in 2020, before averaging 34 over the 2021-23 period. Prices were averaged across the 20 leading bunkering ports worldwide. The value of a $ /gallon price move on this contract = Calculate $ Kerosene - 5.670 million Btus per barrel. The bulk of these orders have stemmed from the VLCC and MR2 classes as 28 and 56 firm orders have been placed, respectively. 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. Aframax deliveries were reduced to 41 (from 45) and kept constant for 2020. $20.00 Basrah. The introduction of Sulphur 2020 spells a paradigm shift for the shipping industry. Oil price information Last update: 2020-12-18 Nr. Chart. Rising Regional averages - Click for full details. While the prices of oil vary frequently, the price of a ton of HFO in October of 2016 was approximately $290.00 USD, while a ton of distillate fuel was $516.00 USD. Barrels. A spread of US $220/metric ton between VLSFO and HSFO is projected in year 2020 on this basis. For 2020, we project VLSFO to price at US $531/mt in Rotterdam as compared to US $309/mt for HSFO, allowing for some economic benefit to a scrubber solution. 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