Fuel Switch Snapshot: LBM’s price edge strengthens in Rotterdam

Rotterdam LBM's discount to B100 widens to $505/mt for vessels with low methane slip engines sailing between EU ports.

All bunker prices described in the text below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market from the past week. 

Rotterdam’s 0 gCO2e/MJ liquefied biomethane (LBM) benchmark has fallen by $11–13/mt in the past week, depending on a vessel's methane slip. This has cut the effective cost of bunkering and consuming LBM on EU–EU voyages to $86–333/mt.

It has also bolstered LBM’s cost-competitiveness against other bunker fuels in the port.

LBM’s discounts to LNG in Rotterdam have widened by $17–18/mt to $567–576/mt over the past week.

For dual-fuel vessels, Rotterdam LBM’s discounts to LSMGO have widened by $22–24/mt to $648–894/mt. Its discounts to B100 have widened by $16–18/mt over the same period.

LBM is now $505/mt cheaper than B100 when bunkered on vessels with the lowest methane slip engines (diesel slow speed), and $259/mt cheaper for vessels with the highest methane slip engines (Otto medium speed) in Rotterdam.

Liquid fuels

Rotterdam’s VLSFO price has inched up by $5/mt, broadly tracking a $13/mt rise in front-month ICE Brent futures.

VLSFO availability in the ARA bunkering hub has remained tight for prompt deliveries, with buyers advised to book stems with a lead time of around eight days to secure broad coverage from suppliers, according to a trader.

Rotterdam’s B100 price has gained $6/mt over the past week. Its discounts to HSFO and VLSFO have narrowed by $9/mt and $1/mt to $166/mt and $225/mt, respectively, while its discount to LSMGO has widened by $6/mt to $389/mt.

Singapore’s VLSFO price has increased by $8/mt and its B100 price has edged up by a smaller $4/mt over the past week. Most suppliers have advised lead times of around 2–7 days for VLSFO in the port, compared with 4–6 days the week before.

B100 is now $258–469/mt more expensive than conventional fuels in Singapore. Its premiums over HSFO and LSMGO have risen by $1/mt and $12/mt, respectively, while its premium over VLSFO has narrowed by $3/mt to $387/mt.

Liquid gases

Estimated EU ETS cost for bunkering 0 gCO2e/MJ LBM in Rotterdam and consuming it between two EU ports has remained at $9/mt for dual-fuel vessels with diesel SS engines.

But for vessels with Otto MS engines, the cost has increased by a further $2/mt to $94/mt over the past week.

In Singapore, LNG is $48/mt more expensive than VLSFO for vessels with Otto MS engines, with the premium up by $8/mt over the past week. But it flips to a $71/mt discount to VLSFO for vessels with diesel SS engines.

For dual-fuel vessels, LNG is priced at $81–200/mt discounts to LSMGO in Singapore, depending on the vessel’s engine type and its methane slip profile.

By Konica Bhatt

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