4 November 2020

Singapore is no Longer Simply an MTD Port 


Key Effects to Consider:

  • Price: Price performance benchmarking
  • Choice: Many suppliers quote MTD. Be aware of who is quoting what price type.
  • Volume: As MTW is dependent on volume, the volume you plan matters. Batch and bulk purchases to avoid high barge premiums. Be aware of barging thresholds as one MT short can carry a $1500 - $2000 barging difference.

As per the graphics below, we have currently found that about 30% of stems are quoted MTW versus MTD. However, when split by low/high volumes we found 50% of all stems for this period under 500 MTs were quoted MTW, more than doubling the percentage of stems under 500 MT quoted MTW in 2019 (23%). As of October 2020, 65% of the suppliers in Singapore were quoting MTW, with 10% of those quoting exclusively MTW. 

placeholder


It is not only the low volume stems, there are also higher volume stems (over 500 MTs), that get a barging premium. The lumpsum barging rate can vary from $1500 to over $4500.

placeholder


This impacts prices in lower quantities for VLSFO by approx. $50 and LSGO by approx. $25 per MT. There are many more small stems than before and they carry the barging premium.

placeholder


Buyers and Operators need to be aware and establish stem volume plans to ensure they are delivered the correct amount, as fluctuations in volume can cause prices to be $10 - $30 per MT higher than the initial MTW quote and can range $5 - $40 per MT above suppliers quoting MTD.

placeholder


It will be interesting to continue to track this trend and see if it may cause a ripple effect on other high liquidity ports like Rotterdam, Fujairah, Gibraltar.


VIEW ALL MARKET INSIGHT ARTICLES

Through our bunker procurement, pricing and analytics platform, we have unique visibility of actual and indicative pricing, product requirements, availability and completed transactions across the market. By aggregating this anonymized data, coupled with over a decade of historical data, we can provide insight into market activity, current trends and commentary on potential future outcomes. 

ClearLynx Market Insights brings you the latest thoughts and findings from our team based on real data.

CONTACT US

+1 (203) 616-4333  |  www.clearlynx.com  |   LinkedIn   |   Twitter