World News
Global VLSFO-HSFO Spread Jumps to Highest Since IMO 2020 Transition
Shipowners with scrubber-equipped tonnage are seeing the biggest fuel discounts since the IMO 2020 transition as HSFO price drops outpace VLSFO.
The average global spread between VLSFO and HSFO stood at $136/mt on Monday, according to Ship & Bunker's G20 Index of prices at 20 leading bunkering ports. That was the widest discount since February 2020, during the IMO 2020 transition and before last year's collapse in crude in the face of COVID-19 narrowed the spread significantly.
The spread has widened since the recent low of $85/mt on October 7 with HSFO price falls proceeding more quickly than VLSFO.
Scrubber manufacturers and users in the past have referred to a $100/mt spread as a key psychological level at which installing the systems appears more profitable.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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