- Bunker buyers are paying more for lower specification fuel in Singapore, according to the latest analysis from ClearLynx.
- Specifically, based on the platform’s transactional volume for September against the ClearLynx price index.
- owners lifting VLSFO to ISO 2017 spec bettered the index by $8.47/mt versus $4.50/mt better than the index if lifting ISO 2010 – a saving of $3.97/mt.
- Owners lifting LSMGO with ISO 2017 spec would have been, on average, $2.30/mt better than the index, but for ISO 2010 only $0.76 above the index.
Singapore Buyers Paying More for Lower Spec Bunkers: ClearLynx, says a Ship and Bunker news report.
Latest market insight
In fact, the price of ISO 2017 product was lower than ISO 2005, 2010, and 2012 material, the firm’s latest Market Insight shows.
“While ISO 2010 accounted for the most MT, the best deals were done on ISO 2017 fuel,” ClearLynx adds.
The ClearLynx transactional volume represents about 13% of annual Singapore demand.
Merits of ISO 8217 standards
The merits of using the latest ISO 8217 standards for marine fuel have been debated for many years, and suppliers have long argued that even though the dollar price per tonne may be higher, they represent better value from a calorific perspective.
Presumably a surprise to some buyers, then, will be the latest findings by ClearLynx indicate savings can be had even before energy content calculations are considered, so overall savings for buyers burning 2017 spec fuel could be even higher.
It also raises the question of whether a perceived price premium really is holding back wider adoption of the latest standards.
Ban older marine fuel specifications
In the absence of a voluntary shift to the ISO 8217:2017 specification, Rahul Choudhuri, managing director for VPS in Singapore who was speaking at the SIBCON industry event last week, proposed the country’s Maritime and Port Authority (MPA) should use its “regulatory muscle” to ban older marine fuel specifications.
ClearLynx’s full Market Insight can be read here: https://marketinsights.clearlynx.com/iso-standard-2017-is-price-premium-or-availability-impacting-its-adoption.html
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Source: Ship and Bunker