Barometer of bunker fuels is launched

Petromedia, a provider of international information services for the marine industry, has announced the launch of its BWI (Bunkerworld Index).

Representing bunker fuel market movements on an international basis, the BWI is a weighted daily index based on Bunkerworld Benchmark Prices from 20 key bunkering ports, providing a single number that describes the global bunker market on any particular day.

Set daily at 18:00 GMT, the BWI tracks market movements without the need to analyse data from multiple ports and avoids over-emphasis on Rotterdam, Singapore, Houston and Fujairah as main indicators. While many of the largest bunkeirng ports by volume are included, the index does not simply comprise the 20 largest bunker hubs, but also reflects the latest trends in geographical importance within the marine fuel sector.

Also in recognition that the bunker market is not homogeneous, prices for a variety of main grades are included, such as IFO380 cSt, IFO180 cSt, Marine gasoil (MGO) and Marine Diesel Oil (MDO).

The BWI will be offered free of charge to all registered users of the service. Petromedia says that BWI is not only designed for bunker professionals dealing on a daily basis, but will also be important for any company exposed to the global bunker market, such as multinational shippers, charterers, traders, banks and insurance companies.

The index is claimed to offer a versatile reference point with multiple applications, for example a basis for setting bunker fuel futures, swaps or OTC contracts, as well as providing an independent basis for the calculation of bunker surcharges.

Matt Cape, CEO of Petromedia, said: “The repercussions of fluctuating bunker prices have impacted anyone exposed to the marketplace; from traders and brokers dealing with the market on a daily basis to multinational organisations whose business depends upon shipping products around the world. The BWI provides a transparent and independently calculated barometer of global bunker fuel markets, which will enable users to easily track movements and improve financial management.”