14 September – news round up including can Blockchain help?

14 September – news round up including can Blockchain help?

14 stories this week in our news round-up on sulphur 2020 and related stories, including can Blockchain help?

BIMCO September News Bulletin

Operators transitioning to low-sulphur fuels to meet the IMO Global Sulphur Cap have faced a sharp learning curve to overcome numerous technical issues. A recent Fuel Oil Quality and Safety Survey, conducted by BIMCO is featured in their September bulletin http://portfolio.cpl.co.uk/BIMCO/202009/sulphur-cap/

Gibraltar Hi-5 bunkers spread at fresh low amid tightness in HSFO

The premium of very low sulfur fuel oil to its high sulfur counterpart at Gibraltar has fallen to its lowest level since at least July 2019 — when S&P Global Platts began assessing VLSFO — amid contrasting supply and demand fundamentals, sources said.

“[There are] heavy issues with HSFO avails in the Gibraltar straits,” one bunker buyer said, adding that, in some cases, HSFO prices were above those for VLSFO.

VLSFO supply has been ample, meanwhile, amid the demand destruction caused by COVID-19. https://www.bunkerworld.com/news/insight/158038/Britt-Russell-Webster-Harry-Morton-Rowan-Staden-Coats-Sarah-Jane-Flaws/Gibraltar-Hi-5-bunkers-spread-at-fresh-low-amid-tightness-in-HSFO

Gard reflects on IMO 2020 fuel switchover

Predictions over potential engine damage and litigation between owners and charterers relating to the use of very low sulphur fuel oils have not materialised – but challenges remain, says the P&I Club.

This week Gard published a report on the IMO 2020 transition based on the claims and inquiries from its members and clients, as well questions posed during a series of webinars hosted by the Club which focused on upon technical, contractual, insurance and enforcement issues related to IMO 2020. https://www.bunkerspot.com/global/51310-global-gard-reflects-on-imo-2020-fuel-switchover

Trafigura invests in improving Berbera Oil Terminal, to make it a ‘regional supply hub’

Trafigura Group has delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism.

This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (BOT) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa. https://www.storageterminalsmag.com/trafigura-invests-in-improving-berbera-oil-terminal-to-make-it-a-regional-supply-hub/

ExxonMobil completes successful sea trial of its first marine bio fuel oil

ExxonMobil has safely completed a successful sea trial using the company’s first marine bio fuel oil with shipping company Stena Bulk, bunkered in the port of Rotterdam.

The marine bio fuel oil is a 0.50% sulphur residual-based fuel (VLSFO) processed with a second generation waste-based FAME component (ISCC certified). The product will be available later this year, initially in Rotterdam before a wider launch across the ExxonMobil port network. https://shipmanagementinternational.com/exxonmobil-completes-successful-sea-trial-of-its-first-marine-bio-fuel-oil/

Japan marine fuel 0.5%S flips to premium as typhoon delays bunkering

A temporary tightness in Japan’s marine fuel market due to the impact of Typhoon Haishen has pushed the marine fuel 0.5%S differential into positive territory for the first time in four months. https://www.bunkerworld.com/news/158050

Sediment levels in off-spec fuels cause concerns

The Fuel Oil Bunker Analysis Service is reporting a smaller share of off-specification fuels. It is also noting the increasing prevalence of sediments. Off-spec fuel shares in 0.5% fuels have declined in recent months. At the same time, cases of severe impact, such as vessel paralysis, have not been seen in the past couple of months, Lloyd’s Register testing agency the Fuel Oil Bunker Analysis Service reports. https://lloydslist.maritimeintelligence.informa.com/LL1133815/Sediment-levels-in-offspec-fuels-cause-concerns (subcription)

BIFA urges all box lines to drop low-sulphur fuel fee

The British International Freight Association (BIFA) has said recent announcements by some container shipping lines that they will suspend or discontinue low-sulphur fuel surcharges “will be welcome news” for its members, urging all box lines to drop low-sulphur fuel fees and criticising the creeping number of other surcharges and fees.

https://www.lloydsloadinglist.com/freight-directory/news/BIFA-urges-all-box-lines-to-drop-low-sulphur-fuel-fee/77347.htm

Vessels with scrubbers look like the biggest sulfur cap losers

Alphatanker says that tankers with a scrubber on board are the biggest losers in the wake of the new sulfur regulations. The analyst firm assesses that the payback period for a scrubber is now up to five years for a supertanker. https://shippingwatch.com/carriers/Tanker/article12397748.ece

US Refining Firms Take to Court Over Bunker Desulfurisation Patent

The technology involves using a hydroprocessing unit at a refinery to remove the sulfur from HSFO while preserving its other qualities. https://shipandbunker.com/news/am/582350-us-refining-firms-take-to-court-over-bunker-desulfurisation-patent

Mitsubishi 2020 Scrubber Installations Reach 22 Ships

The company has installed the systems on board five 20,000 TEU container ships, eight 14,000 TEU container ships, five container ships of 10,000 TEU or less, two oil tankers and two LPG carriers. https://shipandbunker.com/news/world/299208-mitsubishi-2020-scrubber-installations-reach-22-ships

US Refining Firms Take to Court Over Bunker Desulfurisation Patent

The technology involves using a hydroprocessing unit at a refinery to remove the sulfur from HSFO while preserving its other qualities. https://shipandbunker.com/news/am/582350-us-refining-firms-take-to-court-over-bunker-desulfurisation-patent

Patent-pending low sulphur fuel technology was copied, claim inventors

Rigby Refining executives are seeking a jury trial to determine if Phillips 66 and WRB Refining ‘copied’ their Magēmā low sulphur fuel technology.

A complaint has been filed in a Texas district court over the alleged use of the Magēmā technology which was developed by Rigby Refining CEO Michael Moor and Chief Technologist Bertrand Klussman. https://www.bunkerspot.com/americas/51269-americas-patent-pending-low-sulphur-fuel-technology-was-copied-claim-inventors

BunkerTrace

And this is why we created BunkerTrace. Developed in 2019, with input from a broad consortium via BLOC, BunkerTrace is a turn-key solution for tracking marine fuels. Its combination of blockchain and synthetic DNA provides shipping with the assurance of accurate reporting and authenticity of fuels for actionable insights and compliance.

After the first pilot with Cooperative Bebeka in 2019, and scaling with first mover clients, BunkerTrace successfully proved that this technology can transform marine fuel compliance and that the data can be used to make the bunkering supply chain safer. https://theloadstar.com/2020-compliance-and-bunker-fuel-issues-solved-using-blockchain-and-dna/

Maritime shippers focus on ‘clean’ vessels amid pandemic

Industry aims to reduce pollution, improve efficiency, strengthen asset class

“Finally, we project that average vessel speeds will slow to reduce fuel consumption. Such decreases in vessel speeds lead to supply contraction as vessels take longer to complete voyages, thereby supporting market rates.” https://www.theasset.com/article-esg/41549/maritime-shippers-focus-on-clean-vessels-amid-pandemic

Sulphur2020 New Round Up 7 September

Sulphur2020 New Round Up 7 September

Sulphur2020 News Round-Up 7 September 2020

10 featured news updates on Sulphur2020 including a Podcast and the fact that Containerships overtake tankers for the most fitted scrubbers details

Mitsubishi Shipbuilding’s marine sulphur oxides (SOx) scrubbers have been successfully installed on 22 ships across three ship types during the last 8 months.

The DIA-SOx scrubbers have been installed as scheduled despite COVID-19 restrictions. Remote commissioning conducted via close communication and cooperation with the engineers of its local partners in China and Singapore respectively enabled Mitsubishi Shipbuilding to continue with the planned installations. Read more https://vpoglobal.com/2020/09/04/mitsubishi-shipbuilding-completes-22-scrubber-retrofits/

Rotterdam Hi-5 bunker spread hits all-time low

The premium of very low sulfur fuel oil over its high sulfur equivalent at Rotterdam port fell to a record low on Aug. 21, as the latter stays resilient to bearish fundamentals in the global oil complex.

Read blog post here https://www.bunkerworld.com/news/insight/157893/Britt-Russell-Webster-James-Goldburn/Rotterdam-Hi-5-bunker-spread-hits-all-time-low

Shipper relief as ocean carriers finally scrap low-sulphur surcharges

Ocean carriers are officially scrapping the low-sulphur fuel surcharges introduced last year to mitigate the impact of the 1 January IMO 0.5% sulphur cap regulations on marine fuel.

Maintaining low-sulphur surcharges as fuel prices plunged has been a bone of contention for shippers, who have criticised carriers for being slow to ditch the additional fee. Read in full https://theloadstar.com/shipper-relief-as-ocean-carriers-finally-scrap-low-sulphur-surcharges/

Demand for HSFO at Singapore rising as more scrubbers fitted

Singapore has seen a rise in demand for high sulfur bunker fuel of late from the growing number of ships that have completed scrubber installations, given the limited availability of the grade at smaller ports, market sources said. More https://www.bunkerworld.com/news/157981

MARINE FUEL 0.5%S: Ample supply weighs on global marine fuel markets in September

Global marine fuel 0.5% prices are expected to be capped by increasing supply and depressed demand from the retail sector in September as refiners continue to grapple with weak low sulfur fuel oil margins.

Inventory levels in Asia in particular are expected to rise as an arbitrage window from the West that opened in early-August has market participants expecting at least a 500,000 mt increase in volumes landing in Singapore in September from the month before. Read the blog here https://www.bunkerworld.com/news/insight/157965/Rohan-Menon-Sarah-Jane-FlawsBeth-Brown/MARINE-FUEL-0-5-S-Ample-supply-weighs-on-global-marine-fuel-markets-in-September

South Korea tightens sulphur cap By Hwee Hwee Tan
The six ports affected by the new regulatory cap are Incheon, Pyeongtaek-Dangjin, Yeosu, Gwangyang, Busan and Ulsan. Vessels are required to switch to 0.1% sulphur fuel within an hour of anchoring or docking and do so until an hour before leaving. From January 1, 2022 ships must switch over on entering the emissions control areas Read here (subscription) https://lloydslist.maritimeintelligence.informa.com/LL1133720/South-Korea-tightens-sulphur-cap

Pricing for marine fuel 0.5%S in Balboa, Houston jumps on tight supply, wholesale values

Bullish crude complex also plays role in recent bunkers price increases. Read here https://www.bunkerworld.com/news/157960

Listen: Asian HSFO markets endure IMO 2020, coronavirus challenges

Featuring    Mriganka Jaipuriyar     Surabhi Sahu     Oceana Zhou Commodity Oil,  Shipping Length 12:12
Topic COVID 19: Coronavirus Outbreak,  Environment and Sustainability,  IMO 2020

Light sulfur fuel oil has been the main marine fuel of choice worldwide, but high sulfur fuel oil has held its stead in Asia. S&P Global Platts senior oil experts Surabhi Sahu and Oceana Zhou join Platts Asia Head of News Mriganka Jaipuriyar in examining the demand for HSFO particularly in Singapore, which is the world’s largest bunkering port. They also discuss China’s fuel demand and outlook, as well as the impact of the coronavirus pandemic on the Asian fuel oil markets. Link to listen https://www.bunkerworld.com/news/insight/157949/Surabhi-Sahu/Listen-Asian-HSFO-markets-endure-IMO-2020-coronavirus-challenges

Singapore LSFO-HSFO spread falls to 3-month low on rising LSFO supply

Bunker suppliers in Singapore reported fewer inquiries for low sulfur bunker fuel in the week ended Aug. 28. More here https://www.bunkerworld.com/news/157953 

Containerships overtake crude oil tankers as most scrubber-fitted sector

Containerships with a collective cargo carrying capacity of 5.3m 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 1 January 2020.

By the start of July, the share of the containership fleet with scrubbers installed exceeded that of the crude oil tanker fleet. At that time, the container shipping sector became the most scrubber-fitted amongst the main cargo carrying ship types. “In order to cut the sulphur oxides emission, shipowners who can afford to buy a scrubber have done so to a substantial extent, with investments predominantly directed towards high consumption ship types,” says Peter Sand, BIMCO’s Chief Shipping Analyst and continues – read more: https://www.bimco.org/news/market_analysis/2020/20200813containerships_overtake_crudeoil_tankers_scrubber