Shipping Company fined $3M for breaking Sulphur Rules

Shipping Company fined $3M for breaking Sulphur Rules

A shipping company found breaking the 0.1% sulphur limit on using bunker fuel in the US Caribbean emissions control area (ECA) has been fined by a US court.

The US district court fined ship operator Ionian Shipping and ship owner Lily shipping and a number of individuals $3 million for breaking the rules.

The ship concerned was the Ocean Princess e=which carried petroleum products to and from the Caribbean port of St Croix.

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This article appeared in www.shipandbunker.com

IMO2020: GCC Inks Deal to produce low Sulphur Fuel in Houston – Ship & Bunker

IMO2020: GCC Inks Deal to produce low Sulphur Fuel in Houston – Ship & Bunker

GCC Bunkers has inked a deal in Texas International Terminals to produce low sulphur bunker fuels in the Houston, Texas area.

The processing agreement covers the production of both IMO2020 grade 0.50% sulphur bunker fuel oil and emissions control area (ECA) compliant 0.10% sulphur gasoil.

The products will be supplied through dedicated chartered bunker barges.

With the 0.50% sulphur cap coming into force from January 1, 2020, GCC says it will also continue to supply 3.5% sulphur specification fuel oil to its contract customers from separate, dedicated barges.

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This article appeared in www.shipandbunker.com

ClassNK reorganises to meet 2020 Challenges – ShipInsight

ClassNK reorganises to meet 2020 Challenges – ShipInsight

Classification society ClassNK has undergone structural changes that include the integration of its point of contacts in order to more quickly and efficiently support clients with the IMO’s upcoming Sulphur Cap which will be globally enforced starting in January of 2020.

In light of the increasingly strengthening SOx regulation, until now ClassNK had already been providing not only appropriate plan approvals/site surveys and information on international/regional regulations but also carrying out various other initiatives to provide clients with compliant support to the new regulation. In addition to the release of the “Guidance for onboard use of Compliant Fuel Oil with SOx regulation from 2020” which outlines potential risks and mitigation measures involved with compliant fuel oil, and the “Guidelines for Exhaust Gas Cleaning Systems” which include requirement explanations for SOx scrubbers, ClassNK has also provided a sample “Ship Implementation Plan (SIP)” recommended by the IMO for switching to compliant fuel oil now that global enforcement is within sight and many appraisal services for SIPs and fuel oil tank cleaning etc.

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This article appeared in www.shipinsight.com

IMO2020: Market continues to wait for VLSFO Spot Pricing in most Ports

IMO2020: Market continues to wait for VLSFO Spot Pricing in most Ports

The price of IMO2020 compliant VLSFO bunkers is still an unknown for the majority of ports, much to the frustration of many market participants.

For around a month now Ship & Bunker has been publishing spot pricing for the 0.50% sulphur material; in Singapore, Rotterdam, and Fujairah, with indications also available in Russian Far East and Taiwan.

But it remains to be seen when wider spot pricing will become available, and Ship & Bunker has received numerous recent requests to provide an update on the current outlook.

‘’Unfortunately, ‘some time in Q4, or maybe late Q3’ is still the best estimate we have for most markets,’’ says Ship & Bunker’s Editor, Martyn Laesk.

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This article appeared in www.shipandbunker.com

S&P Global Platts: Trade tariffs seen muting IMO 2020 impact for US refiners

S&P Global Platts: Trade tariffs seen muting IMO 2020 impact for US refiners

Weakening export demand for US-made products is skewing the impact of the change to cleaner ship fuel on US refined products as marine gasoil prices fall and cracks widen ahead of the IMO’s mandated January 1, 2020, deadline to reduce sulfur content to 0.5% from 3.5%.

The imposition by the Trump Administration of tariffs on China is having an impact on port activity, and the slowing of global trade and US exports is keeping distillate prices below where US refiners thought they would be just under four months before the deadline imposed by the International Maritime Organization.

Fewer US products are making their way abroad, according to container export data from the ports of Houston, Long Beach, California, and New York and New Jersey.

This lack of US exports and resulting weak economic growth are helping push down the price of marine gasoil, the current go-to fuel for ship owners ahead of the deadline mandated by the International Maritime Organization for IMO 2020 deadline.

Regardless, the heady refining margins expected by US refiners has yet to materialize, although most feel it is on the horizon as the deadline draws near.

“We are starting to see movement, albeit relatively light,” said Tom Nimbley, CEO of PBF Energy on the August 1 second quarter results call.

“We expect to see even more activity as we approach the fourth quarter, and January 1, 2020, does put a line in the sand.”

However, other factors have come into play which are also keeping the price spread between cleaner fuel and heavier fuel narrower than expected.

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