News Update 31 August 2020
Here are 13 news stories that have appeared over the past week including the impact of the slowdown on the trade and prices.
The South Asian country started importing 0.005% sulfur gas oil in July. Read here https://www.bunkerworld.com/news/157933
Spot market volatility props up HSFO demand. Read here https://www.bunkerworld.com/news/157933
Transition to low sulphur fuel not without problems, survey shows – Ship Management International
A survey has shown that the transition to IMO 2020 compliant fuel oil has not been without problems.Between February and May 2020 BIMCO, The International Chamber of Shipping (ICS), INTERCARGO and INTERTANKO conducted The Fuel Oil Quality and Safety Survey with the aim to get a greater understanding of the quality of the new0.5% sulphur fuel oils and possible safety implications of the IMO 2020 sulphur regulation. Read article here https://shipmanagementinternational.com/transition-to-low-sulphur-fuel-not-without-problems/
CPCL says initial runs will be 5,000 mt a month. Read here https://www.bunkerworld.com/news/157929
Worldscale flat rates are set annually and are used as the basis of some freight markets with trades being made at a differential to them. Read here https://shipandbunker.com/news/world/884650-alphatanker-sees-2021-worldscale-flat-rates-drop-by-20-25-on-vlsfo-collapse
Delivered-Durban 0.5% sulfur fuel oil bunker prices reached $435/mt on Aug. 25, up from $374/mt on Aug. 21 in just two consecutive trading sessions, S&P Global Platts data shows. Read here https://www.bunkerworld.com/news/157920
While HSFO has rallied strongly, VLSFO prices remain significantly lower than their levels before the OPEC+ row hammered markets. Read here
South Korea’s new Emission Control Area, requiring ships to use fuel with maximum 0.1% sulfur content while berthing from Sept. 1, is expected to have a minimal impact, market sources said in the week started Aug. 23. Read here https://www.bunkerworld.com/news/157904
Ultra low sulfur fuel oil remains cheaper than marine gasoil but only marginally as price differentials narrowed to an eight-month low in Europe, S&P Global Platts data showed. Read here https://www.bunkerworld.com/news/insight/157903
Once a staple of the bunkers market, demand for high sulfur (3.5%) fuel oil was expected to drop off a cliff after IMO 2020 — — the lower, 0.5% sulfur cap on marine fuel globally since Jan. 1. Read here https://www.bunkerworld.com/news/157943
The Singapore 380 CST high sulfur fuel oil cash differential over the grade’s swaps values slipped into negative territory on Aug. 27 due to declining demand from Saudi Arabia. Read here https://www.bunkerworld.com/news/157946
The company mostly cited this year’s slowdown in shipping as being behind its worsening performance. Read here https://shipandbunker.com/news/apac/187721-straits-inter-logistics-sees-63-drop-in-oil-trading-and-bunkering-profit
New IMO greenhouse gas study is an important tool for policy decisions
The International Maritime Organization (IMO) has published its 4th Greenhouse Gas (GHG) study, and BIMCO finds the results very encouraging, as data confirms the industry can reach the 50% lower IMO emissions target in 2050.
Optimise Port Call Timing to Reduce GHG Emissions: IMO
The UN body noted new research showing ships spend up to 9% of their time waiting at anchorage.
Stricken Bulk Carrier Wakashio Has Spilled Quarter of its Bunkers in Mauritius
About 1,020 mt of VLSFO has been pumped off the vessel, and about 1,600 mt remains along with 200 mt of marine diesel oil.
IMO Releases its Fourth GHG Study: Here Are 4 Key Findings
Domestic shipping emissions drastically underestimated; operational measures should be used to reduce emissions; prepare for regulations “loophole” on methane, Black Carbon to be closed.
IMO’s fourth climate report reveals increasing CO2 emissions from shipping
IMO just presented its fourth and much-anticipated report on shipping’s CO2 emissions. The new report reveals that shipping’s emissions have been on the rise in recent years. Transport & Environment calls the development alarming.
How COVID-19 Helped To Simplify The Transition To Low-Sulphur Diesel In The Shipping Business
Any crisis, whether in energy or any other sector, inevitably creates unanticipated costs and benefits. The crisis created by the COVID-19 pandemic has produced all manner of unforeseen consequences in the energy and environment space, both in the U.S. and globally. This has certainly been true in the maritime transport sector as well.
Containerships Overtake Tankers as Most Scrubber-fitted Sector -BIMCO
Containerships with a collective cargo carrying capacity of 5.3 million 20-foot equivalent units (TEU) are now fitted with an exhaust gas cleaning system (scrubber) to remove sulphur oxides (SOx) from the exhaust gasses generated by the combustion processes in marine engines and thereby comply with the IMO 2020 global sulphur regulation which came into force on January 1, 2020.
Regional sulphur emission limits at a glance
A number of regions, states and ports around the world have implemented their own strict sulphur emission limits – and the list of such places is likely to grow in the future. Ship operators must therefore ensure crews are familiar with the sulphur emission limits in force in the jurisdiction to which they trade.
Putting the puzzle together: The 2020 Sulphur Cap
To understand how the maritime industry sees development unfolding over the next decade, Castrol surveyed 50 high-level industry stakeholders at the beginning of 2020. The results gave us interesting observations into how owners, operators, managers, regulators, bunker traders and fuel providers expect the industry to evolve.
Former IMO emissions chief joins UK coastguard
Edmund Hughes has joined the UK’s Maritime and Coastguard Agency as maritime emissions reduction engineering lead.
Consultancy Brookes Bell to Open UK Bunker Testing Lab
The facility will be within a new laboratory the company plans to open near Liverpool.