What $70+ oil means to container, tanker and dry bulk shipping

What $70+ oil means to container, tanker and dry bulk shipping

Spread between VLSFO and HSFO marine fuel is highest since March 2020

The price of Brent crude topped $72 per barrel Thursday, with West Texas Intermediate above $70. As the price of oil goes, so goes the price of marine fuel. And that means higher costs for ship operators, and in the case of the container sector, more fuel surcharges passed along to cargo shippers.

Higher bunker (marine fuel) costs affect different shipping segments differently. American Shipper looked at each segment, and for a broader perspective on where pricing will go next, interviewed Richard Joswick, head of global oil analytics at S&P Global Platts.

How shippers of containerized goods are affected
In the container sector, liner companies pass along higher fuel costs via a bunker adjustment factor (BAF). Carrier filings of BAFs to Distribution Publications Inc. (DPI) show that BAFs plunged in Q3 2020, after the COVID-induced collapse in oil price, and have been ramping back up ever since.

Asia-West Coast BAFs of carriers CMA CGM, COSCO, Evergreen and OOCL that have already been filed for Q3 2021 are up by an average of $229 per forty-foot equivalent unit (FEU) or 69% versus the same period last year. Asia-East Coast BAFs of these four carriers for the third quarter are up an average of $409 per FEU or 78% year on year.

(Charts: American Shipper based on data from DPI)

In normal times, such price increases would garner more attention. But in the current situation, where shippers are often paying well over $10,000 per FEU from Asia to the U.S., the rising BAF is a drop in the bucket.

Steve Ferreira, founder and CEO of Ocean Audit, told American Shipper, “Two years ago, this would have been a bigger story. Now, for shippers, it’s just another nail in the coffin. At this point, I don’t even think the logistics folks are paying attention to bunkers. I think the BCOs [beneficial cargo owners] should do a better job of negotiating BAFs, given the egregious rates they’re paying.”

Ferreira also said that BAFs being offered by non-vessel-operating common carriers (NVOCCs) are “substantially higher” than what liners are posting for the same dates and routes. “They [NVOCCs] are marking it up,” he claimed.

Scrubber implications across all segments

From the shipowning perspective, one effect that spans all the major segments — container, tanker and dry bulk — involves exhaust gas scrubbers.

Since Jan. 1, 2020, under the IMO 2020 regulation, ships without scrubbers must burn more expensive 0.5% sulfur fuel known as very low sulfur fuel oil (VLSFO) or 0.1% sulfur marine gas oil (MGO). Ships with scrubbers can continue to burn cheaper 3.5% sulfur fuel known as high sulfur fuel oil (HSFO).

According to pricing data from Ship & Bunker, the HSFO-VLSFO spread hit $121 per metric ton on Wednesday, its highest level since March 5, 2020. The spread has been at $100 or above throughout this year — and more shipowners are now opting to install scrubbers to capture the savings.


Prices are average for top 20 global bunker hubs (Chart: American Shipper based on data from Ship & Bunker)

How container liner operators are affected

The question for container liner operators is: Does BAF income from their cargo shippers entirely offset fuel-price increases? Are liners taking a loss on bunker costs or are they taking a profit, by passing along more costs to shippers than liners pay?

Liner contract earnings from shippers are directly affected by BAFs. During the conference call for Q3 2020 results, Maersk executives said that higher spot rates were offset by declining contract rates pulled lower by bunker clauses as fuel prices decreased. That dynamic should now reverse. With BAFs increasing, liners’ reported contract rates should not only benefit from the higher annual rates that were recently negotiated, but also from BAF upside.

Meanwhile, liners’ actual fuel spend has become much more unpredictable given extreme port congestion around the world. On one hand, ships are reportedly sailing faster on backhaul runs to make up for lost time, and fuel consumption is exponential to speed. On the other hand, ships that are stuck at anchor for weeks are burning much less fuel.

Yet another variable: What type of fuel are container ships burning, VLSFO or HSFO? Of all the various ship categories, larger container ships have installed the most scrubbers — they are burning much more HSFO than VLSFO.

According to data from Clarksons Research, 67% of ultra-large container ships on the water (defined by Clarksons as having at least 15,000 twenty-foot equivalent units of capacity) now have scrubbers. An additional 5% of the existing fleet is due for retrofits. Of newbuilds on order in this vessel class, 78% will be scrubber-equipped. Including existing and new ships, 74% of the ultra-large container ships are set to have scrubbers. This is up from 70% in January and 60% in January 2020.

How tanker owners are affected

In the tanker sector, the rise in the price of oil is a positive sign for future cargo demand, both on the crude and product tanker fronts. But tanker operators are extremely exposed to the spot market, and in a spot voyage deal, the operator pays for fuel. The rising cost of marine fuel is a negative for costs.

Tanker rates remain extremely depressed. Tankers with scrubbers save money on fuel, but that only means they’re bleeding less cash than tankers without scrubbers.

According to Clarksons, older VLCCs (very large crude carriers; tankers that carry 2 million barrels of oil) earned the equivalent of $3,400 per day in the spot market on Thursday, with rates for older scrubber-equipped ships more than double that — $8,200 a day — due to fuel savings. Modern “eco” nonscrubber VLCCs built in 2015 or later were earning $9,700 per day, modern VLCCs with scrubbers $13,100 per day.

But the all-in cash breakeven of a VLCC is around $22,000-$25,000 per day, according to analyst estimates. Even a modern VLCC with a scrubber is heavily in the red.

Nevertheless, owners of large tankers continue to embrace scrubbers. According to data from Clarksons, 40% of VLCCs on the water now have scrubbers, with an additional 2% of existing VLCCs due for retrofits. Of VLCC newbuilds on order, 43% will have scrubbers. Altogether, including existing and ordered ships, 42% of VLCCs are set to use scrubbers. That’s up from 40% in January and 35% in January 2020.

Many of the initial tanker scrubber refit plans were delayed in Q4 2019 and H1 2020 because rates were extremely high. The last thing an owner wants to do is put a tanker in the yard at the very moment returns are booming. But the market was the mirror opposite in Q4 2020 and Q1 2021. Rates were so low that owners accelerated drydockings and brought ships into yards ahead of schedule because it was the best time to be out of the spot market, allowing more scrubber retrofits.

Jefferies analyst Randy Giveans confirmed, “Owners are certainly continuing to retrofit large tankers with scrubbers, especially as rates remain so weak and the HSFO-VLSFO spread widens. Even at a $100 per ton spread, the VLCC premium is at least $4,500 per day, which is very meaningful at current rate levels.”

How dry bulk carrier owners are affected

The more time a ship is at sea, the more savings from scrubbers. As a result, scrubbers make more economic sense on larger ships because they sail longer routes. Just as scrubber penetration is highest on ultra-large container ships and VLCCs, it is highest in the dry bulk sector among Capesizes (bulkers with capacity of 100,000 deadweight tons or more).

Clarksons data shows that 42% of on-the-water Capesizes already have scrubbers, plus another 1% set for retrofits. Of Capesizes on order, 41% will feature scrubbers. Including existing and new ships, 43% of Capesizes are set to have scrubbers. That compares to 42% in January and 34% in January 2020.

Savings derived from the HSFO-VLSFO spread are shown over time by the scrubber and nonscrubber Capesize indices compiled by S&P Global Platts. Its Cape T4 index assessed the rate for nonscrubber Capes at $19,920 per day on Wednesday. The assessed rate for scrubber-equipped Capes was $23,316 per day due to fuel savings, $3,396 or 17% higher.


TCE rate = time-charter equivalent rate (Chart: American Shipper based on data from S&P Global Platts)

Unlike tankers, dry bulk ships are making money, so scrubbers actually increase earnings as opposed to decrease losses. According to various analysts, the all-in cash breakeven for a Capesize vessel is somewhere between $13,000-$17,000 per day.

What’s next for marine fuel prices?

Several factors are driving marine fuel prices and spreads. One is the price of oil. The recent rise has spurred chatter on much higher prices to come. Joswick of S&P Global Platts doesn’t agree.

“The price of around $70 does not surprise us. Global demand is improving and the huge inventory surplus we saw in 2020 is being worked off and is mostly gone. A lot depends on what happens with OPEC — which is waiting to see if demand increases before they increase their production more — and with Iran. We think some sort of deal with Iran [with the U.S., on sanctions] will probably occur. The question is when.”

Joswick believes that “as we get towards autumn, oil prices are more likely to go down than up. The fundamental outlook is that it will be tightest through the summer and then ease after that. We don’t see any fundamental reason for oil prices to skyrocket.” That, in turn, implies no reason for marine fuel pricing to skyrocket.

As for the spread, there are developments that could push the price of VLSFO higher and the price of HSFO lower, benefiting scrubber economics.

On the VLSFO side, jet fuel is an important issue. COVID caused jet-fuel demand to collapse, but demand is rebounding with the return of domestic air travel. Nonscrubber ships consume a lot more VLSFO than MGO, and jet-fuel demand is more linked to MGO than VLSFO pricing, but there is a connection between jet fuel and VLSFO.

If there is less demand for jet fuel, some of the molecules that would have otherwise gone to jet fuel go into the diesel pool and some of the heaviest components with higher boiling points can be used for the creation of VLSFO (a negative for VLSFO pricing). When there is more demand for jet fuel, those extra molecules are reduced (a positive for VLSFO pricing).

“We’re getting jet fuel demand back, which is supportive of diesel and MGO and to a lesser extent, VLSFO,” explained Joswick. MGO “is getting stronger, and the key question is where VLSFO [fits in the equation]. VLSFO had been moving in lockstep with MGO, but it’s not right now.”

On the HSFO side, the issue is refinery utilization. When refinery utilization is low — as it was during the peak COVID period — less HSFO is created. If there is less HSFO to process, it is easier for the most efficient units of the refining system to convert that HSFO to diesel. When refinery utilization increases, as is happening now, less efficient units are required to convert the HSFO.

“If you start bringing on units that are less efficient, it is only economic if the price spread between diesel and HSFO is wider. When that happens, the price of HSFO goes down relative to diesel,” explained Joswick.

The VLSFO tailwind and HSFO headwind are positive for scrubber economics. But Joswick emphasized that this will not lead to the extreme spreads seen in Q4 2019 and Q1 2020, at the time IMO 2020 was implemented.

“We should expect some widening of the spreads over time, but we’re not going to see a [spread] spike like we had before. The problem with IMO 2020 was that it was only announced three years prior to implementation and it usually takes refiners five years to build something. Well, we’re now going on five years. The new facilities are coming online. So, there will be a gradual widening [of the spread] but we’re not going to see a repeat of IMO 2020.”

Published by freightwaves.com

 

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

NEWS ROUND UP 29 JUNE

NEWS ROUND UP 29 JUNE

CHEM Europe: Development of sustainable marine fuels

In an EU-funded research project, an international consortium aims to develop new production methods for sustainable marine fuels to replace heavy fuel oils in shipping. The use of heavy fuel oils (HFOs) contributes to global warming due to the fossil origin of these fuels and, moreover, generating non-negligible emissions of pollutants such as sulphur oxides. The IDEALFUEL project aims to create sustainable alternatives by developing new efficient and low-cost methods to produce low-sulphur heavy fuel oils from wood-based non-food biomass. OWI Science for Fuels gGmbH and TEC4FUELS GmbH are involved in the project as research partners.

https://www.chemeurope.com/en/news/1166902/development-of-sustainable-marine-fuels.html

 

Hellenic Shipping News: Mounting transport fuel stocks add new twist to VLSFO specs

Shifting fundamentals in European transport fuel markets have affected operational requirements for shipowners using VLSFO, as blenders alter feedstocks to make their economics work amid the coronavirus pandemic while the bunkering industry grapples with this year’s lower sulfur content rules.

https://www.hellenicshippingnews.com/mounting-transport-fuel-stocks-add-new-twist-to-vlsfo-specs/

 

TheStar: Shippers face financial burden

KUALA LUMPUR: The delays in collecting cargoes during the movement control order (MCO) period has resulted in accumulated charges, causing financial burden to local shippers and manufacturers, says Malaysian National Shippers’ Council (MNSC) chairman Datuk Dr Andy Seo Kian Haw.

https://www.thestar.com.my/business/business-news/2020/06/29/shippers-face-financial-burden

 

Splash 247: China launches low- sulphur fuel futures

China has started the trading of the futures of low-sulphur fuel on the Shanghai International Energy Exchange from today.

Prior to the commencement of official trading, the exchange conducted two trials on June 13 and June 21 including daily trading and settlement.

The first day of trading commenced with a benchmark price of RMB2,368 ($335) per ton for monthly delivery contracts from January to June 2021 and the price has so far surged by around 13 % on the Shanghai International Energy Exchange.

https://splash247.com/china-launches-low-sulphur-fuel-oil-futures/?utm_source=dlvr.it&utm_medium=twitter

 

Indepthnews: Concerted Efforts to Offset Damage Caused by Arctic Shipping

REYKJAVIK (IDN) – The polar region located at the northernmost part of Earth is warming at an accelerating rate and as sea ice continues to melt away, Arctic waters are becoming increasingly navigable to vessels carrying heavy fuel oil (HFO). HFO, which is one of the world’s dirtiest fuels, is not only virtually impossible to clean up in the event of a spill, but also produces higher levels of air and climate pollutants than other marine fuels.

Aware of the severe risks that heavy fuel oil poses to polar environments, the international shipping community has already banned its use in the Antarctic. But, as experts point out, it is now time to provide similar protection to the Arctic – an ecosystem that is equally vulnerable to disturbance and pollution.

Until recently, 76 per cent of the fuel used in Arctic shipping was HFO. Ships typically used heavy fuel oil with a sulphur concentration of 2.7 per cent. But the International Maritime Organisation (IMO) has ruled that from January 1, 2020, the maximum sulphur content of ships’ fuel oil would be 0.5 per cent instead of 3.5 per cent. Subsequently, fewer ships are now using HFO.

https://www.indepthnews.net/index.php/sustainability/oceans-seas-and-marine-resources/3649-concerted-efforts-to-offset-damage-caused-by-arctic-shipping

 

VPO: Stena Bulk presents low emission tanker prototype

Stena Bulk has presented a prototype of the next-generation product and chemical tanker, the IMOFlexMAX, which will reportedly reduce greenhouse gas emissions by more than 25 per cent compared to current product tankers.

https://vpoglobal.com/2020/06/22/stena-bulk-presents-low-emission-tanker-prototype/

 

Ship and Bunker: Chinese VLSFO Exports dropped in May

Exports of very low sulphur fuel oil (VLSFO) from China dropped significantly last month according to news agency Reuters, in signs of a continuing impact of the Covid-19 pandemic on global shipping demand.

https://shipandbunker.com/news/apac/720042-chinese-vlsfo-exports-dropped-in-may

 

Ship and Bunker: OPEC+ Compliance May Deliver $500/MT VLSFO by End of 2021

Full compliance by members of the oil producer coalition OPEC+ to its output cuts deal could see Very Low Sulphur Fuel Oil (VLSFO) prices climb above $500/MT again by late 2021, according to bunker trading company Integr8 Fuels.

https://shipandbunker.com/news/world/556345-opec-compliance-may-deliver-500mt-vlsfo-by-end-of-2021

 

Ship and Bunker: Istanbul Market Faring Well Despite 8% Drop in Bunker Sales

Local bunker suppliers in Istanbul have sounded a positive tone despite a drop in marine fuel sales following measures put in place to address the COVID-19 pandemic.

https://shipandbunker.com/news/emea/948043-istanbul-market-faring-well-despite-8-drop-in-bunker-sales

 

Ship and Bunker: Pacific Green Retreats From Scrubber Sales as HSFO Discount Remains Narrow

Technology company Pacific Green has decided to scale back its presence in the marine scrubber business, in the latest sign of weakening prospects for the emission cleaning technology.

https://shipandbunker.com/news/emea/135150-pacific-green-retreats-from-scrubber-sales-as-hsfo-discount-remains-narrow

 

The installation of 700 scrubbers was cancelled due to Covid

According to Clarksons, many works entrusted to shipyards were cancelled due to the pandemic and to the drop in the price gap between traditional bunker oil and low-sulphur fuel oil

http://www.ship2shore.it/en/shipping/the-installation-of-700-scrubbers-was-cancelled-due-to-covid_74446.htm

 

Fujairah refiners mull switch from LSFO to light distillates as profitability plunges – traders

Key low sulfur fuel oil refineries in Fujairah belonging to Uniper and Vitol may switch to producing more profitable light distillates or mothball their refineries altogether if demand for LSFO remains depressed and prices unprofitable, traders in Fujairah said week ending June 26.

https://www.bunkerworld.com/news/157396

 

Shippingwatch: Bunker company predicts significant price increase for low-sulfur oil in 2021

If the Opec+ member states continue to comply with their agreement to lower oil production, the price of low-sulfur fuel oil could surge to over USD 500 by the end of 2020, assesses bunker company.

https://shippingwatch.com/suppliers/article12251702.ece

 

Motorship: KEEPING ENGINES RUNNING AMID 2020 FUEL CHALLENGES

Early reports on the variable quality of very low-sulphur fuel oils confirm research highlighting the need for robust cylinder lubrication when using the new fuel blends.

Looking back on the first three month since the implementation of IMO’s global sulphur cap, it seems that concerns over the variability of new very low sulphur fuel oil (VLSFO) blends were justified. To cite just one example, Lloyd’s Register’s Fuel Oil Bunker Analysis and Advisory Service (FOBAS) has issued three alerts on excessive sediments in VLSFO. FOBAS’ analysis shows that five percent of all VLSFO samples taken in Singapore in the first two months of 2020 had high sediment volumes. In Rotterdam the figure rises to 23%.

https://www.motorship.com/news101/fuels-and-oils/keeping-engines-running-amid-2020-fuel-challenges

 

Bunker price spread keeps scrubber economics unfavourable  By Michelle Wiese Bockmann

The price spreads being seen have extended the payback period for a scrubber capesize bulk carrier beyond five years, and more than three years for a very large crude carrier

The difference in price between high-sulphur fuel oil and the compliant 0.5% sulphur fuel oil is weakening the economic argument for scrubbers.

https://lloydslist.maritimeintelligence.informa.com/LL1132783/Bunker-price-spread-keeps-scrubber-economics-unfavourable

 

Hong Kong Shipping Gazette News .hksg.com

Article in full below.

TS Lines in search of new ships as Q1 profits soar 170pc to US$21.5m

CHAIRMAN of TS Lines, Chen Te Shen says controlling costs and services additions on routes with growing demand have led to the Taiwan carrier’s 170 per cent year-on-year increase in profits.

The Taiwanese operator of the intra-Asia carrier reported profits of TWD650 million (US$21.49 million), achieved by responding to challenging conditions caused by Covid-19 with the company withdrawing from the US trades and concentrating on operating intra-Asian and Asia-Australia routes. Mr Chen said the company further reduced costs by redelivering chartered vessels that were deployed on withdrawn services.

The leased fleet increased the flexibility of the company’s operations. While owning a certain percentage of newly built own ships, with high fuel efficiency, allowed the company to reduce costs further, reports Container News, Jacksonville.

Mr Chen said that there is a silver lining in the pandemic, as oil prices collapsed to an 18-year low, resulting in low-sulphur fuel oil becoming cheaper. This meant compliance with the International Maritime Organization’s emissions cap was more affordable.

“Oil prices fell sharply in March. As the fuel surcharge was calculated based on the oil price of the previous quarter, when our actual bunker costs fell, the company’s profit increased,” explained Mr Chen.

Cargoes to and from India and the Philippines declined during Q2, but TS Lines added services to Thailand and Vietnam, where cargo demand remained strong. Consequently, the carrier’s operating profit for Q2 2020 is forecast to be TWD700 million.

The chairman said: “We’ll continue to acquire vessels and commission newbuildings. Three years ago, we aimed to own five vessels. At the time, we operated 36 vessels. Today, we are operating 46 ships, including 12 owned vessels. Another three are under construction. Today’s newbuildings are fuel-efficient, but it takes two years for a vessel to be built. If there are suitable pre-owned ships in the market, we’ll consider second-hand purchases.”

 

BTJ 2/20 – Green loans by the book. How to embed environmental care in ship financing by Amy Lindemann, Senior Associate, Campbell Johnston Clark

The IMO 0.5% sulphur cap is now in force globally, while the Poseidon Principles, a banking code aimed at integrating climate considerations into lending decisions, have been widely adopted by many of the major ship finance banks.

Let us then explore the implications for the evolution of loan and finance lease documentation in shipping, as well as for the commercial elements of deals.

http://baltictransportjournal.com/index.php?utm_source=freshmail&utm_medium=email&utm_campaign=BTJ_e-newsletter&id=110

 

ICE LSGO futures net speculative length rises 6,045 lots on week

Speculative net long positions in ICE low sulfur gasoil futures rose 6,045 contracts to 34,899 in the week to June 16, according to ICE data June 22.

https://www.bunkerworld.com/news/157342

 

News Round Up 22 June

News Round Up 22 June

Bunkerspot: AMERICAS: Panama’s May bunker volumes slip back 5% year-on-year

New Panama Maritime Authority statistics show that May bunker volumes totalled 393,316 metric tonnes, and the month was notable for a surge in low sulphur marine gasoil sales, which almost touched the combined total for the first four months of the year.

https://www.bunkerspot.com/americas/50737-americas-panama-s-may-bunker-volumes-slip-back-5-year-on-year

Bunkerspot: AMERICAS: New joint venture will look to process heavy crude oil using Quadrise MSAR technology

Oil exploration, development and technology group TomCo Energy and Valkor have formed a joint venture, Greenfield, which will look at the development of an oil sands plant at Asphalt Ridge in Utah; Valkor has also granted Greenfield a licence to Quadrise MSAR emulsion fuel technology for the processing of heavy sweet crude oil into IMO 2020-compliant heavy fuel oil.

https://www.bunkerspot.com/americas/50744-americas-new-joint-venture-will-look-to-process-heavy-crude-oil-using-quadrise-msar-technology

 Bunkerspot: GLOBAL: VLSFO: ‘load it and use it,’ says LR’s Douglas Raitt

Emerging problems over the stability of very low sulphur fuel oils (VLSFOs) when stored for longer time frames were addressed in an online webinar today hosted by Integr8 Fuels, with Douglas Raitt, Global FOBAS Manager, suggesting that the fuel may not be ‘a formulation to be kept for a period of time’.

The webinar, which looked at bunker fuel in the current shipping market, featured a wide-ranging discussion between Raitt and Chris Turner, Manager – Bunker Quality and Claims with Integr8 Fuels, and the quality of the new VLSFOs was, not surprisingly, a key talking point.

https://www.bunkerspot.com/global/50752-global-vlsfo-load-it-and-use-it-says-lr-s-douglas-raitt

Bunkerspot: GLOBAL: Presence of shale oil in VLSFO blends is on the up

Since 1 January 2020, the use of shale oil in blended very low sulphur fuel oils has been on the rise, with significant levels of Estonian shale oil – which can cause issues such as onboard filter clogging – having recently been seen in bunkers supplied at ARA ports, according to Douglas Raitt, Global FOBAS Manager, Lloyd’s Register.

https://www.bunkerspot.com/global/50754-global-presence-of-shale-oil-in-vlsfo-blends-is-on-the-up

Bunkerspot: ASIA PACIFIC: Australia increasing fines for pollution related incidents

The majority of Australian States are increasing their fines for pollution related incidents with effect from 1 July.

https://www.bunkerspot.com/asia/50759-asia-pacific-australia-increasing-fines-for-pollution-related-incidents

Ship and Bunker: Bunker Futures Contract starts at Shanghai Exchange

The marine fuel futures contract that launches today on the Shanghai International Energy Exchange is likely to attract strong interest, despite weakened ship fuel demand amid the coronavirus pandemic.

https://shipandbunker.com/news/apac/346356-bunker-futures-contract-starts-at-shanghai-exchange

Shipping Gazette: Pandemic forces shipowners to shelve scrubber installation

SHIPOWNERS are postponing or cancelling the installation of scrubbers that extract sulphur emissions from their vessels as the coronavirus pandemic tightens finances, reports Reuters.

Regulations from UN’s agency the International Maritime Organisation (IMO), which took effect in January, were viewed by the oil and shipping industries as one of the first worldwide efforts to enforce environmental change.

The rules aimed to make ships use fuel with a sulphur content of 0.5 per cent, compared with 3.5 per cent previously. Operators had the alternative option to install devices – scrubbers – to strip out the pollutant.

In the run-up to IMO 2020, dozens of traders and shipowners, bet on installing scrubbers hoping to make a profit from buying cheaper high-sulphur fuel as the newly developed 0.5 per cent alternative would be in tight supply.

But with an average cost of US$2 million to install just one, the stakes were already high for fleet operators often facing investments of more than $100 million.

Now the industry financial squeeze, caused by a decline in demand for shipping due to the Covid-19 crisis, may mean scrubbers become less of an option for ship owners to comply with regulations.

Leading Norwegian firm Wallenius Wilhemsen, which transports cars and other vehicles, told Reuters it had cancelled scrubbers for nine ships in the past few months and postponed an additional eight until later this year or 2021.”As a result primarily of the Covid-19 pandemic, customers have significantly reduced their output of vehicles,” a spokeswoman said. “With that comes a reduction in revenues and we are taking all necessary steps to reduce cash outflows.”

Clarksons Research said it recorded a significant slowing in the number of ships already in service installing scrubbers, estimating there were under 100 vessels undergoing retrofits versus over 300 at the start of the year.

Clarksons said the number of ships pending retrofits was 750 – some of which may be postponed or cancelled – versus a peak of over 2,000 pending in the middle of 2019. They estimated there were now 3,015 ships fitted with scrubbers, from 506 at the start of 2019.

Shipping Gazette: Cargo, low fuel bright spots in worst year for aviation: IATA

THE year 2020 will go down as the worst financial year in the history of aviation because of the Covid-19 crisis, a fact that justifies an industry-wide government bailout, according to the International Air Transport Association.

IATA’s director general and CEO Alexandre de Juniac, former CEO of Air France, saw only one ray of hope. “Strong cargo operations and comparatively low fuel prices will also give the industry a boost,” he said.

“But every day of this year will add US$230 million to industry losses. In total, that’s a loss of $84.3 billion. That’s why government financial relief is crucial,” he said.

“Provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organisation (ICAO) to keep passengers and crew safe,” he said.

“Airlines will still be financially fragile in 2021. Passenger revenues will be more than one-third smaller than in 2019. And airlines are expected to lose about $5 for every passenger carried. The cut in losses will come from re-opened borders leading to increased volumes of travellers.

“That will translate into strong incentives for travellers to take to the skies again. The challenge for 2022 will be turning reduced losses of 2021 into the profits that airlines will need to pay off their debts from this terrible crisis,” he said.

Reuters: China to be self-reliant in IMO-compliant fuel – official

Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO) this year, which would make the country self-sufficient in the new shipping fuel, an official with state major PetroChina said on Monday.

https://www.reuters.com/article/china-oil-imo-idUSL4N2DZ0W1

Ship & Bunker: Petrobras low Sulfur Focus Fuels Exports’ Rise

Big monthly increase over a year ago.

https://shipandbunker.com/news/am/458423-petrobras-low-sulfur-focus-fuels-exports-rise

Ship & Bunker: Singapore Bunker Margins Almost Double in a Week

The premium for delivered very low sulfur fuel oil in Singa

pore over local cargo prices jumped to $25.72/mt on Friday, from $13.98/mt a week earlier.

https://shipandbunker.com/news/apac/690728-singapore-bunker-margins-almost-double-in-a-week

Ship & Bunker: Singapore Sees Marginal Decline in Bunker Demand in May

Total demand at the world’s largest bunkering hub fell to 3.925 million mt in May, down by 2% from a year earlier and by 4.6% from the previous month.

https://shipandbunker.com/news/apac/463618-singapore-sees-marginal-decline-in-bunker-demand-in-may

Bunkerworld: EIA says total US ULSD stocks draw for first time since March

Ultra low sulfur diesel stocks in the US drew for the first time since the week that ended March 27, falling 1.22 million barrels to 160.78 million barrels during the week that ended June 12, US Energy Information Administration data released June 17 showed.

https://www.bunkerworld.com/news/157297

Bunkerworld :TENDER DATA: India’s HPCL sells HSFO loading July 6-8 from Mumbai

HPCL is an occasional seller of high sulfur fuel on a spot tender basis, according to market sources.

https://www.bunkerworld.com/news/157313

Bunkerworld: S Korea marine fuel 0.5%S differential plunges to 10-month low on weak demand

Poor demand for delivered marine fuel 0.5%S in South Korea has pushed its differential against the FOB Singapore 10 ppm gasoil assessments to a 10-month low of minus $45.35/mt on June 17, S&P Global Platts data showed.

https://www.bunkerworld.com/news/157309

Bunkerworld: Bunker fuel trader Glander sees FY2019-20 revenues soar amid IMO 2020 transition

Glander International Bunkering reported a 19.4% rise in total revenue in its 2019-20 fiscal year amid an eventful year for the bunker industry, the marine fuel trader said in a statement June 18.

https://www.bunkerworld.com/news/157308

Bunkerworld: OIL FUTURES: Crude rises as OPEC+ compliance hopes overshadow virus risks

Crude futures settled higher June 19 as the market shrugged off concerns of a coronavirus pandemic resurgence amid tighter supply outlooks.

https://www.bunkerworld.com/news/157322

Bunkerworld: Bunker Fuels Need to be Treated Cautiously as Dangers for Engines Can Lurk in Low Sulphur Products

As the saying goes ‘There’s no such thing as a free lunch’, and that seems to be the case with the International Maritime Organization’s mandatory legislation on the sulphur content allowable in marine fuels, at least according to specialist fuel treatment firm Aderco.

Aderco has recently released a new fuel guide intended to improve fuel performance and prevent damage to maritime diesel engines. The report follows a series of tests conducted in Belgium and Singapore on low sulphur fuels over recent months. The authors claim that the tests show that incorporating a fuel additive can help mitigate problems such as commingling whilst improving fuel stability, reducing sludge and removing water from the new fuels.

http://www.handyshippingguide.com/shipping-news/bunker-fuels-need-to-be-treated-cautiously-as-dangers-for-engines-can-lurk-in-low-sulphur-products_13004

Khaleej Times: Pandemic forces ship owners to shelve anti-pollution gear

Ship owners are postponing or cancelling the installation of “scrubbers” that extract harmful sulphur emissions from their vessels as the coronavirus pandemic tightens finances.

Regulations from United Nations agency the International Maritime Organization (IMO), which took effect in January, were viewed by the oil and shipping industries as one of the first worldwide efforts to enforce environmental change.

https://www.khaleejtimes.com/business/global/pandemic-forces-ship-owners-to-shelve-anti-pollution-gear

Khaleej Times: Three Steps for a Smooth Transition to IMO 2020: Preparation, Flexibility and Timing

During late 2019, the maritime industry was gearing up to IMO 2020. The logistical complexity and financial repercussions were going to be huge. While living and working through this step change, Hafnia Bunkers found that preparation, flexibility and timing were all essential for a smooth, efficient transition into this new reality.

https://www.hellenicshippingnews.com/three-steps-for-a-smooth-transition-to-imo-2020-preparation-flexibility-and-timing/

News Round Up 15 June 2020

News Round Up 15 June 2020

Ship and Bunker: Several Hundred Ships May Need Engine Upgrades to Cope with VLSFO

Running lower-viscosity fuels constantly may be causing engine problems for some older ships. Read in Full 

Ship and Bunker: VLSFO now available in Pakistan

The max 0.50% sulfur fuel is a straight run product with a viscosity range between 40 and 180 cSt. Read in Full 

Ship and Bunker: Brokerage NSI Warns Shipowners to Prepare for Lower Korean Sulfur Limit

The rule will just apply at berth and anchorage from September, but is due to be extended to cover all of South Korea’s waters from January 1, 2022. Read in Full 

Ship and Bunker: Repsol Expands VLSFO Supply Locations in Spain

From June the company can now deliver VLSFO by truck from 15 Spanish ports. Read in Full 

Ship and Bunker: Finland Trials “Sniffer Bouy” to Monitor Sulfur Regs Compliance

The trial began at the end of May with the pilot period running until autumn 2020. Read in Full 

Bunkerworld: Asian maine fuel market recovery slows amid thin demand,ample supply

Initial signs of recovery seen in the Asian marine fuel market have faded amid ample supply and slow demand with the contango structure weakening from three-month highs reached June 5, market sources said June 12. In Full »

Bunkerworld: European HSFO seeing support from dwindling supply

High sulfur fuel oil — the main marine fuel globally before IMO 2020, a ‘greener’ regulation from January 1 — has found support from a sharp drop in production, with the lack of volume in Europe underpinning its value. In Full »

Bunkerworld: Singapore’s residue stocks steady June 10 as bunker fuel demand still low

Singapore’s commercial onshore residue stocks were largely unchanged at 25.687 million barrels, or 4.05 million mt, as of June 10, when compared with 25.685 million barrels a week ago, Enterprise Singapore data released June 11 showed, as bunker demand has yet to recover. In Full »

Bunkerworld:  REFINERY NEWS: PetroChina Guangxi produces first VLSFO for bonded bunkering

A 3,250 mt batch of 0.5% sulfur marine fuel produced by PetroChina’s Guangxi Petrochemical became Guangxi’s first domestically produced fuel oil cargo to enjoy a value-added-tax rebate, a source at the refinery said June 12. In Full »

Bunkerworld: Pakistan’sOrion Bunkers targets barge fleet expansion

Pakistan’s Orion Bunkers Ltd. plans to expand its bunker barge fleet as demand for cleaner fuels gains impetus after the International Maritime organization’s global low sulfur mandate, the company’s director Zishan Arshad told S&P Global Platts. In Full »

Bunkerworld: Kiire emerges as major high sulfur bunker port in Japan with JXTG as sole supplier: traders

The port of Kiire, located in South Kyushu in western Japan, has emerged as a major high sulfur bunkering port in the country, with JXTG Nippon Oil & Energy starting as sole supplier there, bunker traders said June 12. In Full »

Bunkerworld: Japan marine fuel 0.5% differentials in discounts in June; market seen bottoming

The delivered Tokyo Bay marine fuel 0.5%S differential to Singapore 10 ppm gasoil cargo assessments has remained in discounts so far in June, averaging minus 53 cents/mt over June 1-10, compared with a premium of $7.56/mt over May 20-29 and a monthly average of $21.41/mt in May, S&P Global Platts data showed, as weak demand coupled with ample supply weighed on the market this month. In Full »

Bunkerworld:  Singapore 180/380 CST HSFO spread widens to 3-month high on strong 180 CST demand

The strong demand for 180 CST high sulfur fuel oil for power generation has widened the spread between FOB Singapore 180 CST HSFO and 380 CST HSFO, otherwise known as the viscosity spread, to a three-month high of $15.40/mt on June 10, fuel oil traders in Singapore said.

https://www.bunkerworld.com/news/insight/157245/Atsuko-Kawasaki/Singapore-180-380-CST-HSFO-spread-widens-to-3-month-high-on-strong-180-CST-demand

Bunkerworld:  Singapore July ex-wharf MF 0.5% S bunker term talks inconclusive on wide bid-offer spread

Negotiations for the term supply of Singapore ex-wharf marine fuel 0.5%S bunker for July were largely inconclusive so far, as the market was still awaiting cues on near-term price direction amid a wide bid-offer spread, market sources said June 9. In Full »

Bunkerworld: FEATURE: High Sulphur IFO 380 bunker fuelfaces reduced demand at LatinAmerican ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  FEATURE:High sulfur IFO 380 bunker fuel faces reduced demand at Latin American ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  European LSSR strengthens on VLSFO blending despite muted bunker demand

Northwest European low sulfur straight run values rose sharply June 8, following a competitive bid in the Platts Market on Close assessment process. In Full »

Bunkerworld:  Fujairah’s fuel oil exports fall to 18-month low with supplies held in storage

“Fuel oil in Fujairah storage will see seasonal pull from Saudi Arabia, which will soon ramp up HSFO imports,” Wright said. In Full »

Tank News International: HES Wilhelmshaven Tank Terminal LSFO production becomes operational

The Low Sulphur Fuel Oil (LSFO) production unit, which has a nameplate capacity of approximately 2.5 million tons of LSFO per year, located at HES Wilhelmshaven Tank Terminal GmbH (HWTT) in Germany has commenced operations. HWTT is a 100 per cent subsidiary of HES International BV.

 

https://www.tanknewsinternational.com/hes-wilhelmshaven-tank-terminal-lsfo-production-becomes-operational/

Bunkerspot: GLOBAL: Great Eastern ‘going ahead with scrubbers’ but ‘projects not going to be as good as originally envisaged’

Speaking during an earnings conference call last week, Great Eastern Shipping’s Chief Financial Officer G. Shivakumar said the company will ‘go ahead’ with its planned scrubber installations but accepted that ‘the projects are obviously not going to be as good as we had originally envisaged’ because of the reduced price differential between high and low sulphur fuel oils.

 

News Round Up 08 June 2020

News Round Up 08 June 2020

22 Industry insights into bunkering and rates, interestingly not everyone agrees to how rates will fair over the coming months.

US Bunker Demand Drop “as Much as 30%” Globally, both larger ports and larger players fairing better than their smaller counterparts, says IBIA. Ship & Bunker read in full  https://shipandbunker.com/news/world/698867-us-bunker-demand-drop-as-much-as-30

Integr8 Notes Bunker Prices Declining Relative to Other Refined Products. While spreads between products may be heading back towards previous levels, the bunker market should not expect outright prices to do the same yet, according to Integr8. Ship & Bunker read in full https://shipandbunker.com/news/world/921684-integr8-notes-bunker-prices-declining-relative-to-other-refined-products

Oil Up On OPEC Hopes As Virus Declines and Demand Builds Dominate The Business Landscape. Russia even suggests a crude shortage could occur next month. Ship & Bunker read in full  https://shipandbunker.com/news/world/282194-oil-up-on-opec-hopes-as-virus-declines-and-demand-builds-dominate-the-business-landscape

High MGO bunker prices at Colombo pushes demand to Indian ports. “We are still receiving steady interest for MGO because of the lower prices in Mumbai,” said a bunker supplier in Mumbai. In Full https://www.bunkerworld.com/news/157194

Singapore gasoil/LSFO spread slides from 6-month high on returning marine fuel demand. The Singapore low sulfur swaps market has been gaining strength recently after a pretty quiet May when demand was muted, a trader said. https://www.bunkerworld.com/news/157193

Oil edges higher, but remains under pressure from OPEC+ uncertainty. Stepped-up stimulus efforts further supported demand outlooks, placing a floor under oil prices. In Full https://www.bunkerworld.com/news/157204

HES Wilhelmshaven Tank Terminal starts up LSFO unit. HES Wilhelmshaven Tank Terminal (HWTT), Germany’s largest independent liquid bulk terminal, has started up its low sulphur fuel oil (LSFO) production unit, with a capacity of 2.5m t/y. https://www.tankstoragemag.com/2020/06/04/hes-wilhelmshaven-tank-terminal-starts-up-lsfo-unit/

Thailand bunker supply tightens on run cuts, rise in domestic demand: sources. Bunker fuel supply in Thailand has tightened since refiners are cutting run rates, while domestic bunker demand is rising amid easing lockdowns, market sources said on June 3. In Full https://www.bunkerworld.com/news/157191

Bunkering body eyes spread of bunker licensing systems at hubs. Advocates of the system say it provides a more consistent standard of service. S & P Platts Blog post here https://www.bunkerworld.com/news/insight/157177/Tom-Washington/Bunkering-body-eyes-spread-of-bunker-licensing-systems-at-hubs

Crude prices creep higher on OPEC+ extension optimism. Russia has indicated it supports at least extending the reductions by one month through July. In Full https://www.bunkerworld.com/news/157180

Jiujiang Petrochemical joins Sinopec’s foray into producing 0.5% sulfur fuels in China. Domestic refiners continue to ramp up supply, lower China’s dependency on imported bunkers. https://www.bunkerworld.com/news/157168

Singapore’s LSFO-HSFO spread narrows to 1-month low amid tepid demand. More competitive bunker prices at other Asian ports remains key factor. More here https://www.bunkerworld.com/news/157170

Record Monthly Gains For Crude As Demand Continues To Grow Worldwide. But analysts warn that demand recovery will still be long and painful. Read in full  https://shipandbunker.com/news/world/520565-record-monthly-gains-for-crude-as-demand-continues-to-grow-worldwide

Indian Bunker Suppliers Lower Prices to Take On Sri Lanka. Over the past two weeks the discount for very low sulfur fuel oil at Mumbai to Colombo’s levels has widened by $21/mt, reaching $42/mt on Thursday, according to Ship & Bunker pricing. Ship & Bunker read in full https://shipandbunker.com/news/apac/873041-indian-bunker-suppliers-lower-prices-to-take-on-sri-lanka

Less Advance Warning Needed for Spot Bunker Sales as VLSFO Availability Improves. Integr8 is now allowing a lead time of around 8.5 days on average for VLSFO stems, down from 10 days at the start of the year but still much higher than the 5-6 days needed for high sulfur fuel oil (HSFO) in the past. Ship & Bunker read in full https://shipandbunker.com/news/world/541406-less-advance-warning-needed-for-spot-bunker-sales-as-vlsfo-availability-improves-integr8

Bunkerspot: EUROPE: HES Wilhelmshaven begins LSFO production
 
HES Wilhelmshaven Tank Terminal in Germany has begun the operation of its low sulphur fuel oil production unit, which has a nameplate capacity of around 2.5 million tons per year.
Fathom.world: NAMEPA launches maritime sustainability passport Award: Cargill gets first
On the occasion of World Oceans Day, NAMEPA (North American Marine Environment Protection Association) has launched the first known comprehensive CSR/ESG (Corporate Social Responsibility/Environment, Social, Governance) program designed expressly for the maritime industry, with its corresponding “Maritime Sustainability Passport” (MSP) awarded to companies, organizations and individuals who meet the requirements of the platform. The program encompasses the three pillars of CSR/ESG:  corporate governance, environment and the human element.  The launch was designed to coincide with World Oceans Day.
Fathom.world: “Realizing Zero-emission Waterborne Transport to the benefit of future generations”
A partnership comprising key players within the European waterborne transport sector, working together within the Waterborne Technology Platform 1 , propose a new Research and Innovation Partnership which over a period of seven years will implement R&I which will by 2030 demonstrate the feasibility of zero-emission waterborne transport applicable for all main services and ship types.
Fathom.world: Aker BP and Yxney Maritime to chase offshore emission cuts
Press Release: Maress will enable Aker BP to get a detailed insight into the fuel consumption and emissions from the fleet of advanced offshore vessels operating on the Norwegian Shelf. The Maress software provides a foundation for making informed and data-driven decisions on how to decarbonize operations.
VPO: LUKOIL’s ECA-compliant cylinder oil retains approval from major OEMs
LUKOIL’s NAVIGO MCL Ultra remains one of few low BN cylinder oils that still have a valid ‘No Objection Letter (NOL)’ with all major OEMs.
Recently a leading OEM withdrew their approvals for almost all low BN oils in the market, while NAVIGO MCL Ultra has retained its status, and continues to be fully approved by all other major OEMs.
Bunkerspot: GLOBAL: Total signs up to the Getting to Zero Coalition
‘As a major energy player, Total is already developing cleaner fuels for the maritime industry – we share the ambition to get to net-zero emissions by 2050, together with society, for our global operations,’ says Patrick Pouyanné, President and CEO of Total.
The Getting to Zero Coalition is aiming, through its members, at getting commercially viable deep-sea zero-emission vessels powered by zero-emission fuels into operation by 2030.
Total said that it would contribute to the Coalition’s focus areas, including fuels, marine lubricants, and ship zero-emission technologies.
Ship & Bunker: Container Line CMA GCM Continues to Waive Low Sulphur Surcharge
French container line CMA GCM will continue to waive its low Sulphur surcharge designed to pass on the higher fuel costs for very low Sulphur fuel oil (VLSFO) to its customers, the company said Wednesday.