General explanation for TWI Figures
- The TWI table has the upper and lower limits of 40 and 62. An increase of 22 points in the TWI
represents a saving of 27.9% on the fuel cost. If fuel cost constitutes of 60% of operation cost this will be
a saving of 16.74% on operations cost. This also means that the price differential in bunker fuels should
have a spread of 27.9% based on the TWI.
- The FuelTech instrument does not record ECN values less than 18.7 since the fuel is considered to have very poor Ignition and Combustion properties. Therefore, ECN values hit a plateau on the lower end. At the upper end they go upto 35 and rarely up to 45. Nevertheless, there is sufficient range from 18.7 - 35 to address this variation in Ignition and Combustion properties of the fuel.
The best fuel in THE MIDDLE EAST has a TWI of 66 and the worst fuel in the US Gulf has a TWI of 50. If the fuel cost in the The US Gulf is $ 303.00/MT, it should sell in The MIDDLE EAST for $ 359.48 - 369.48/ MT (by applying a price spread of 20.29 %) not taking in account any other logistics cost.
|Region||Multiplier effect: 1.5x||TWI|
|Japan / Korea||50||22.1||40.20||36.9||55|
|ARA - high||60||10||40.39||36.1||54|
|ARA - low||54||21||40.33||38.1||57|
|Singapore - high||60||19.2||40.09||39.7||60|
|Singapore - low||52||23.8||40.08||38.3||58|
|U.S. Gulf - high||50||18.8||40.31||35.6||53|
|U.S. Gulf - low||50||12.9||40.26||33.2||50|