World News
TORM Highlights Fragmented Bunker Market With Five Fuel Grades to Track
Shipping company TORM has highlighted the increased complexity of bunker procurement for shipping companies with scrubbers in the post-IMO 2020 world, saying it now needs to keep track of five different grades of fuel.
"The IMO 2020 sulfur cap required many changes in reporting and systems to measure and evaluate consumption," the company said in its annual report this week.
"Some vessels with scrubbers may still use 3.5% HFO, but not all ports allow it.
"TORM's solution is to move from two fuel types to five."
The five grades the company now works with are HSFO, ULSFO, VLSFO, 0.5% sulfur MGO and 0.1% sulfur MGO, a representative of the firm told Ship & Bunker this week.
"This depends on whether it is a scrubber-fitted vessel or not and on route and destination," the representative said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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