News update: 2 January 2020

Here is the first news update of 2020 and marks the introduction of the IMO’s global Sulphur cap. Below you will find a number of stories related to the 2020 sulphur cap and its affects on the global shipping and international trade.

Lloyd’s List
US amends rules to allow sale of 0.5% sulphur marine fuel. US OIL refineries will be allowed to distribute and sell shipowners marine fuels with a sulphur content of up to 0.5% instead of only 0.1% after a change in regulations by the country’s energy regulators.
The Environmental Protection Agency announced a ‘technical correction’ to the diesel fuel regulations to allow fuel suppliers to distribute distillate diesel fuel that complies with the IMO 2020 0.5% standard. Before the change, refiners could sell only fuel with a sulphur content of 0.1% or lower. More (Subscription)

Marine Link
China Stocks up on VLSFO Ahead of IMO2020 Deadline
Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany’s Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1. More 

ShipInsight
‘Standard’ survey reveals non-standard approach to IMO 2020
With IMO’s sulphur cap now just days away, what can shipowners and operators expect when their vessels arrive in different port state jurisdictions? Will compliant fuel be available and will there be a uniform approach to dealing with violations?
-This short survey reveals some interesting results about the global approach to the new low sulphur fuel cap. More

TradeWinds
Lloyd’s Register issues alert over Singapore low sulphur fuels
Testing company says some bunkers may have excessive sediment.
Lloyd’s Register has issued is warning to shipowners and operators that some of the very low sulphur fuel oil (VLSFO) on sale in Singapore has shown sediment levels above the ISO standard. More (Subscription)

TradeWinds
High sediment reported in IMO 2020-fuel blends
Recent industry studies show test samples of 0.5%-sulphur fuel products can often contain high sediment, which risks clogging in ship engines. This follows on from the pre-Christmas alert concerning some VLSFO on sale in Singapore. More   (Subscription)

Infomarine 0n-line
Possible fuel contamination at Port of Fujairah
The tested TAN values were all significantly over the average for the port (0.17mgKOH/g), with some even surpassing the maximum 2.5 mgKOH/g specification limit as stipulated in ISO 8217:2017. Past experience has shown that some of these components have been linked with severe operational problems, particularly around filters, fuel injection pumps and fuel injectors.
More

Bunkerworld
Latin America sees limited supply, rising prices for IMO-compliant bunkers
With just hours until the official implementation of the IMO 2020 sulfur cap, Latin America continues to see tight supply and rising prices for fuel compliant with the landmark rule.
More  (Subscription)

Singapore to be short of LSFO in 2020 until China starts to export
“It is impossible for Singapore to get 6 million mt a month of LSFO,” a fuel oil trader said.
More  (Subscription)

India’s BPCL starts VLSFO delivery ahead of IMO 2020
The fuel has a sulfur content of 0.44% and a viscosity of 336 CST.
More  (Subscription)

Ship & Bunker
IMO2020: BIMCO Warns Over Blending Remaining HSFO Onboard Instead of Debunkering
Ships looking to blend any remaining HSFO onboard after the 0.05% sulfur cap comes into force, rather than debunkering it, could face running into compliance problems.
More

Tanker Shipping & Trade
How IMO 2020 will benefit the product tanker fleet
While IMO 2020 is expected to bring great benefits to the product tanker market, the geopolitical situation yet could dampen its impact. It is generally expected that something momentous will happen in the product tanker market in 2020, due to the need to ship large quantities of low-sulphur fuel, marine diesel oil and/or blended fuels from refinery to port.
More

Ship & Bunker
Iran Says Shipping Fleet Will Struggle to be IMO2020 Compliant
Iran’s shipping fleet will not be able to comply with the upcoming IMO2020 global sulfur cap when the new rules come into force on Wednesday, officials warned.
More

BunkerWorld
Indonesia’s Pertamina starts production of low sulfur marine fuel from Plaju refinery
MFO part of the company’s efforts to provide cleaner fuels in compliance with IMO 2020.
More  (Subscription)

Fujairah low sulfur bunker price hits new record high as IMO 2020 looms
The price of low sulfur bunker fuel at the Middle Eastern bunkering hub of Fujairah has soared to a brand new high, as demand for IMO-compliant fuel rose significantly in December, with less than a few weeks to go before the new sulfur limit mandate begins in January 2020.
More  (Subscription)

MARINE FUEL ROUNDUP: ExxonMobil starts VLSFO deliveries at three ports
Exxonmobil said it has started sales of 0.5% sulfur fuel oil to the bunker markets at Fos/Marseille, France, at Genoa, Italy, and at Laem Chabang, Thailand.
More  (Subscription)

Fujairah Port to conduct random checks for IMO compliance
The Persian Gulf’s bunkering hub of Fujairah plans to conduct random checks in 2020 on ships taking bunker fuel at the port.
More (Subscription)

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