15 SEPTEMBER 2021 – NEWS ROUND UP

15 SEPTEMBER 2021 – NEWS ROUND UP

UK calls for global 2050 net-zero shipping emissions target

The UK backs a world-leading absolute zero target for international shipping emissions by 2050, which would need to be agreed by the International Maritime Organization, the UK government said in a statement Sept. 13.

This could be a tall order. “It’s an extremely ambitious target and not dependent solely on [the] shipping industry to deliver it,” Tony Foster, CEO and CIO of marine asset manager Marine Capital said on the sidelines of a panel discussion during London International Shipping Week 2021. “Policy and regulation have to play a major role, including, almost certainly, carbon taxes.”

PUBLISHED SEP 13, 2021 14:01 UTC BY S & P Global

 UK calls for global 2050 net-zero shipping emissions target | S&P Global Platts (spglobal.com)

Can The Global Shipping Industry Really Go Green?

As environmental concerns become increasingly pressing for governments and businesses alike, the shipping industry is taking steps to reduce its carbon footprint. In late August Danish shipping company Maersk, the world’s largest container shipping line, announced that it had invested $1.4bn in eight new vessels that will be powered by methanol rather than oil-based fuels.

The ships, set to be delivered in 2024, represent 3% of the company’s total container capacity. They will replace older ships in the fleet and are expected to save up to 1m tonnes of carbon dioxide per year.

PUBLISHED SEP 09, 2021 14:00 CDT BY OILPRICE.COM

 Can The Global Shipping Industry Really Go Green? | OilPrice.com

Asia fuel oil: Cash premiums higher as cargo demand intensifies

SINGAPORE Cash premiums for cargoes of Asian fuel oil were mostly higher on Monday, lifted by higher bids and deal values in the Singapore trading window.

Sentiment in the 0.5% very low-sulphur fuel oil (VLSFO) market has firmed recently on expectations of tightening supplies, particularly for cutter stocks, over the near term, trade sources said. Sluggish bunker demand in the Singapore hub, however, may cap gains. In the high-sulphur fuel oil (HSFO) market, prices have been bolstered by tight supplies that are shared among few suppliers. But the surge in prices may soon crest as peak seasonal power generation demand in the summer begins to fade, the trade sources said.

Published 24th August 2021 by Business Recorder

Asia fuel oil: Cash premiums higher as cargo demand intensifies – Markets – Business Recorder (brecorder.com)

 

Asia Fuel Oil-380-cst HSFO cash premium at over 1-yr high

SINGAPORE: Cash premiums for cargoes of Asia’s 380-cst high-sulphur fuel oil (HSFO) climbed to their highest since January 2020 on Monday at $16.25 a tonne to Singapore quotes, lifted by sustained demand and tight high-sulphur fuel supplies.

In the 0.5% very low-sulphur fuel oil (VLSFO) market, cash differentials were also slightly higher as deal values strengthened.

However, sluggish bunkering demand and more adequate low-sulphur fuel supplies are expected to keep a lid on sentiment in the VLSFO market, trade sources said.

Published 14th September 2021 by Business Recorder

Asia Fuel Oil-380-cst HSFO cash premium at over 1-yr high – Markets – Business Recorder (brecorder.com)

Skou urges IMO to ban fossil fuelled ships by 2035

Søren Skou has used his first mover advantage in the green shipping rush to make an ambitious call on regulators to phase out all fossil fuelled ships by the middle of the next decade.

Skou is the CEO of Maersk, the world’s largest containerline, a company that has ordered world-first green methanol dual-fuelled boxships in recent months.

Writing on LinkedIn on Friday, Skou suggested shipping should follow the path laid out for the automotive sector in Europe.

“The European Commission is proposing to end production of combustion engine cars in 2035. The International Maritime Organization should do the same for fossil fuelled ships with ambitious targets and measures to decarbonise shipping,” Skou proposed.

The IMO’s Energy Efficiency Design Index in its coming phases could be the instrument to make the end date for fossil fuelled ships a global reality

Going in to further detail, Skou suggested that both a global carbon tax and an end date for fossil fuelled ships would send a strong signal to the shipping ecosystem including yards and fuel producers.

A global “drop dead date” would address future newbuilt vessels, complementing the impact of existing ships from a carbon tax, Skou suggested.

Skou is in favour of a carbon tax of up to $450 per tonne of fuel to bridge the price gap between existing bunker fuels and the carbon neutral fuels of tomorrow.

“As the price gap narrows, the IMO’s Energy Efficiency Design Index in its coming phases could be the instrument to make the end date for fossil fuelled ships a global reality,” Skou proposed.

Maria Skipper Schwenn, executive director for security, environment and maritime research at Danish Shipping, commended the idea, writing on the same social media platform: “Strong and important message from a first mover that walks the talk.”

Maersk has eschewed going down the LNG-fuelled path of many of its rivals.

In December 2018, Maersk came out as the first major shipping line to pledge to be carbon neutral by 2050.

In October 2019 the Danish carrier identified three fuels to focus on in its decarbonisation drive, namely renewable methanol, biogas and ammonia.