Introduction  |  Benchmark Bunker Prices  |  Key People

Ship & Bunker Benchmark Bunker Prices: Our Methodology

For each port we cover, Ship & Bunker's Benchmark Bunker Prices combine daily indications that our in-house team personally collect from select local and global physical bunker suppliers, traders, and brokers. This data is used to determine how spot bunker prices in each market have moved and to calculate the average spot price being indicated for each available product. Daily average prices are a linear average of all price indications data for a product in a given market. The high/low price indicated reflects the range of those indications. We do not currently make any assessment of where we believe spot market levels should be.

We believe our methodology and unique blend of data sources provides readers with the most realistic overview of the how the market is being indicated by market participants.

Price indications are updated Monday to Friday excluding days when markets are closed for holidays. For example, most global markets are not open on New Year's Day or Christmas Day. Many markets also have regional holidays. For continuity of data, price indications for market holidays typically reflect those from the previous day. Prices are input throughout the market day so may change during this time. On occasion, indications may be added up to 24 hours after the end of a given market day where appropriate. The first prices for a market day are typically indicated at the end of the market day.

Note also that in some markets price levels do not change daily. For example, ports where sales volumes are low, or local rules mean there are official posted prices, may be updated weekly, bi-monthly, etc.

All indications are quoted for marine fuels sold against the ISO 8217 specification and are priced in USD per metric tonne and based on typical quantities of 500 mt for fuel oil and 100 mt for distillates.

Understanding Bunker Price Indications

Even within a single market or port, there are many factors that determine the price that a buyer pays for bunkers. This includes:

• The volume of bunkers being purchased - indications are for a "typical" stem of 500mt of fuel oil and 100 mt of distillate, but remember that in some ports larger volumes don't always attract a better price per tonne!
• The delivery date - more notice can, but doesn't always mean a better price
• The reputation and other credit considerations of the buyer - higher risk counterparties can generally expect to pay more
• When the deal can be made - sometimes better deals can be had if, for example, a trader or broker needs to make up volumes to fill their quota.
• Who is part of the sales chain - going direct doesn't guarantee the lowest price

Bunker price indications reflect the current sport market. Readers should be aware that buyers whose operational profile allows can also purchase fuel on contract. These deals can often involve larger volumes, longer supply periods, and multiple vessels, so the pricing dynamic of such agreements can be different to fuel obtained in the sport market. The terms of such supply contracts are almost always kept private and confidential and do not feature in assessments for spot price indications.

For these, and other considerations, Ship & Bunker Prices can not be taken as a price guarantee.

Bunker Price Outlook: Our Methodology

Where we forecast future bunker prices our methodology uses the past 12-month historical relationship between a marine fuel product and the Brent oil price benchmark, and uses that to forecast future prices based on the US Energy Information Administration (EIA) future Brent forecast.

Example for G20-VLSFO for Full Year 2025:

1. 12-Month Average G20-VLSFO Price: $624/mt
2. 12-Month Average Brent Price: $601.61/mt
3. Premium for VLSFO over Brent: 3.73%
4. EIA Forecast Price for Brent for Full Year 2025: $559.55/mt
5. G20-VLSFO Forecast Price for Full Year 2025 = $559.55 + 3.73% = $580/mt

Brent crude prices are converted from bbls in the EIA forecast to mt at a rate of 7.53bbls/mt

LNG prices per metric tonne cannot be compared directly to oil bunker prices because the fuels have differing energy densities. To make simple comparisons possible, Ship & Bunker express LNG prices in terms of the energy equivalent of one tonne of conventional oil bunkers.

LNG-380e is the price for an amount of LNG that delivers the energy equivalent of one metric tonne of IFO380 bunker fuel.

LNG-MGOe is the price for an amount of LNG that delivers the energy equivalent of one metric tonne of MGO.

At present, LNG bunker price indications from suppliers tend to be quoted on either an energy basis or a metric tonne basis. In the case of LNG bunker prices in Europe provided thanks to our collaboration with Titan LNG, source pricing is quoted in Euro/mt.

All conversions are made using the following values:

• 40.6 GJ / mt for IFO380 (11.28  MWh/mt)
• 42.5 GJ / mt for MGO (11.81 MWh/mt)
• A net calorific value (LHV) for LNG of 14.01 MWh / mt
• Currency conversions are made at the prevailing rate as per XE.com

Example LNG Bunker Price Conversions

Example LNG-IFO380 equivalent based on a EUR/MT price:

1. Price per metric tonnes LNG delivered: 450 Euro/MT
2. Convert to MWh price: 450 / 14.01 (LNG NCV/LHV)= 32.13 Euro/MWh
3. Convert to USD: 32.13 * 1.198 = $38.49 $/MWh
4. Cost per IFO380 equivalent = $38.49*11.28 = 434.10 $/mt IFO380 Equivalent

Example LNG-MGO equivalent based on a EUR/MT price:

1. Price per metric tonnes LNG delivered: 450 Euro/MT
2. Convert to MWh price: 450 / 14.01 (LNG NCV/LHV)= 32.13 Euro/MWh
3. Convert to USD: 32.13 * 1.198 = $38.49 $/MWh
4. Cost per MGO equivalent = $38.49*11.81 = 454.42 $/mt MGO Equivalent

Example of the LNG-380e calculation for prices that are quoted at source per MMBTU:

1. Commodity: $C 3.025/GJ ($US 2.41/MMBTU)
2. Liquefaction Service: $C 4.51/GJ
3. Total: $C 7.535/GJ
4. Cost per IFO380 Equivalent: 40.6 x 7.535 = $C 305.92
5. Convert to USD: 305.92 / 1.317 = $232.29
6. Convert to NCV: $232.29 x 1.091 = $253.43 per metric tonne equivalent

Example of the LNG-MGO calculation for prices that are quoted at source per MMBTU:

1. Commodity: $C 3.025/GJ ($US 2.41/MMBTU)
2. Liquefaction Service: $C 4.51/GJ
3. Total: $C 7.535/GJ
4. Cost per MGO Equivalent: 42.5 x 7.535 = $C 320.24
5. Convert to USD: 320.24 / 1.317 = $243.16
6. Convert to NCV: $232.29 x 1.091 = $265.28 per metric tonne equivalent

Methanol Bunker Price Indications

As with all alternative bunker fuels, methanol bunker prices per metric tonne cannot be compared directly to oil bunker prices because the fuels have differing energy densities. To make simple comparisons possible, Ship & Bunker express methanol prices both per metric tonne and in terms of the energy equivalent of one tonne of conventional oil bunkers.

MEoH-VLSFOe is the price for a quantity of methanol that delivers the same amount of energy as one metric tonne of VLSFO bunker fuel.

MEoH-MGOe is the price for a quantity of methanol that delivers the same amount of energy as one metric tonne of MGO.

MEoH is the price for one metric tonne of methanol and cannot be compared to oil bunkers on an energy equivalence basis.

All conversions are made using the same energy values for traditional bunker fuels as those used in the calculation of Ship & Bunker’s LNG bunker prices indications.

The energy values used, which are all lower heating value (LHV), are as follows:

• 41.0 GJ / mt for VLSFO (11.38 MWh/mt)
• 42.5 GJ / mt for MGO (11.81 MWh/mt)
• 19.93 GJ / mt for MEOH (5.536 MWh/mt)

Methanol bunker prices are calculated and provided in conjunction with methanol market specialists MMSA.

Example Methanol Bunker Price Conversions

Example MEOH-MGOe equivalent calculation based on MMSA posting:

1. Price per metric ton MEOH: 300 USD/mt
2. Convert to unit GJ price: 300 / 19.93 (MEOH LHV) = 15.05 USD/GJ
3. Convert to MGO equivalent price = USD 15.05*42.5 (MGO LHV) = 639.7 USD/mt MEOH MGO Equivalent

Example MEOH-VLSFOe equivalent calculation based on MMSA posting:

1. Price per metric ton MEOH: 300 USD/mt
2. Convert to unit GJ price: 300 / 19.93 (MEOH LHV) = 15.05 USD/GJ
3. Convert to VLSFO equivalent price = USD 15.05*41.0 (VLSFO LHV) = 617.2 USD/mt MEOH VLSFO Equivalent

As with the previous surveys the areas covered by the survey are Singapore, the Amsterdam-Rotterdam-Antwerp (ARA) hub, Fujairah, the US Gulf, South Korea, Russia, the Gibraltar Strait, Hong Kong, Panama, Zhoushan, Japan, New York, West Africa, South Africa, the Canary Islands, Los Angeles/Long Beach and Turkey. Data is sourced from a combination of market participants and official records.

Further details for coverage of each market are as follows:

• Singapore: All conventional and biofuel bunker sales by licensed suppliers in Singapore, as covered by official data from the MPA. LNG and other alternative fuels not included. The mandatory mass flow meter systems used to measure all bunker deliveries in Singapore come with a +/-0.5% margin of error.
• ARA: All conventional and biofuel bunker sales at the ports of Amsterdam, Rotterdam and Antwerp-Bruges only. LNG and other alternative fuels not included. The majority of the sales are made at Rotterdam and Antwerp-Bruges, where official data is used.
• Fujairah: All sales at Fujairah only, as covered in the official data from the Fujairah Oil Industry Zone.
• US Gulf: All sales in Texas, Louisiana, Mississippi, Alabama, Florida, Georgia and South Carolina.
• South Korea: All sales in South Korea. The majority of sales are at the ports of Busan and Ulsan.
• Russia: All sales in Russia. The majority of sales are at the ports in the Baltic and Black Sea regions, with smaller markets in the Russian Far East and Arctic.
• Gibraltar Strait: All sales at the ports of Gibraltar, Algeciras and Ceuta only.
• Hong Kong: All sales in Hong Kong.
• Panama: All sales in Panama, as covered by official data from the Panama Maritime Authority. Roughly 80% of sales come from the Pacific side of the canal at Balboa.
• Zhoushan: All sales at Zhoushan only.
• Japan: All sales in Japan. Almost all sales are made in the Tokyo Bay area, including the ports of Yokohama and Chiba.
• New York: All sales at the Port of New York only.
• West Africa: All sales on the west coast of Africa stretching from Senegal to Namibia.
• South Africa: All sales in South Africa. The majority of sales are made in Durban, Cape Town and Algoa Bay.
• Canary Islands: All sales at the ports of Las Palmas and Tenerife only, as covered by official data from Spain's Transport Ministry.
• Turkey: All sales in Turkey, as covered by official data from the EPDK. The majority of sales are made at Istanbul.