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 SOUTH EAST has a TWI of 53. If the fuel cost in the THE US area is $ 290.00.00/MT, it should sell in THE MIDDLE EAST for $ 332.82 - 342.82/ MT (by applying a price spread of 16.49 %) not taking in account any other logistics cost.
|Region||Multiplier effect: 1.5x||TWI|
|Japan / Korea||59||25||40.45||41.7||63|
|ARA - high||64||22.2||40.71||42.6||64|
|ARA - low||62||23.9||40.76||42.5||64|
|Singapore - high||55||19.7||40.37||38.0||57|
|Singapore - low||50||21.2||40.19||36.5||55|
|U.S. Gulf - high||56||16.1||40.38||36.9||55|
|U.S. Gulf - low||56||15.3||40.40||36.6||55|