Post on LinkedIn by Pablo Rodas-Martini Author and speaker, bewitched by ships and ports, passionate for the decarbonization of the maritime industry, always trusting in science, and with a firm grasp of maritime and port economics.

A thought on climate change: ships won’t be able to hide their emissions anymore. Their emissions of SOx, NOx, PM, and CO2 will be tracked at all times in the near future. Between sniffer drones, planes equipped with sniffers, stationary sensors, and, on the deep-sea, satellites, shipping companies will be forced to reveal the full extent of their emissions—no more greenwashing by many of them on their sustainability reports! Read here an article from Yale Environment 360 about the critical role of satellites.

“Tracing emissions to their source is no easy task, however. Releases are often intermittent and easy to miss. Ground-based sensors can detect leaks in local areas, but their coverage is limited. Airplane and drone surveys are time-intensive and costly, and air access is restricted over much of the world. That’s where a crop of recently launched and upcoming satellites with increasingly sophisticated tools comes in.”

“A cluster of satellites launched by national space agencies and private companies over the last five years have greatly sharpened our view of what methane is being leaked from where. In the next couple of years, new satellite projects are headed for launch — including Carbon Mapper, a public-private partnership in California, and MethaneSAT, a subsidiary of the Environmental Defense Fund — that will help fill in the picture with unprecedented range and detail. These efforts, experts say, will be crucial not just for spotting leaks but also developing regulations and guiding enforcement — both of which are sorely lacking.”

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.

News Round Up: 20 July 2020

News Round Up: 20 July 2020

Japanese companies start ‘Ship Carbon Recycling WG’

Nine Japanese companies have started the Ship Carbon Recycling Working Group (WG) formed within Japan’s carbon capture and reuse study group, and has held its first meeting.

https://www.drybulkmagazine.com/shipping/16072020/japanese-companies-start-ship-carbon-recycling-wg/

Hull Vane Sees 24% Fuel Consumption Saving From Small Passenger Vessel Retrofit

The company recently installed a bulbous bow and one of its fuel-saving fixed foils to a ship in Switzerland.

https://shipandbunker.com/news/emea/162238-hull-vane-sees-24-fuel-consumption-saving-from-small-passenger-vessel-retrofit

Box Shipping Company Meets 2030 CO2 Target

Efficiency drive by Danaos gives CO2 reduction of 41% in 2019 compared to 2008.

https://shipandbunker.com/news/emea/802684-box-shipping-company-meets-2030-co2-target

News Round Up: 10 July 2020

News Round Up: 10 July 2020

UN secretary-general calls for shipping bailouts to be tied to the Paris Agreement- Splash247

“Bailout support to sectors such as industry, aviation and shipping should be conditioned on alignment with the goals of the Paris Agreement,” said Guterres.
https://splash247.com/un-secretary-general-calls-for-shipping-bailouts-to-be-tied-to-the-paris-agreement/

Damen delivers five zero emissions propulsion ferries for the Danish market- Riviera

Damen Shipyards Group has delivered five 2306 E3 ferries to Arriva Denmark in Copenhagen. Arriva will operate the vessels on behalf of Danish public transport agency Movia.
https://www.rivieramm.com/news-content-hub/damen-delivers-five-zero-emissions-propulsion-ferries-for-the-danish-market-60112

BP-Sinopec bunker venture to start fuel oil deliveries to Fujairah: source- Hellenic Shipping News

BP and Sinopec had said when the venture was announced in May 2015 that they plan to serve ports in Singapore, Fujairah, Antwerp, Rotterdam and Amsterdam, and China’s Tianjin, Qingdao, Shanghai, Ningbo and Shenzhen.
https://www.hellenicshippingnews.com/bp-sinopec-bunker-venture-to-start-fuel-oil-deliveries-to-fujairah-source/

Petrobras replan refinery sets new VLSFO monthly production record- BunkerSpot

The Replan facility, which is located in the state of São Paulo, produced 148,000 cubic metres (cbm) of VLSFO in June, compared to 123,000 cbm in May.
https://www.bunkerspot.com/americas/50890-americas-petrobras-replan-refinery-sets-new-vlsfo-monthly-production-record

News Update 6 July 2020

News Update 6 July 2020

NEWS UPDATE 6 JULY – 4 Great stories to read

FUJAIRAH DATA: Refined product stocks drop most since April to seven-week low – Bunkerworld

“Economies are picking up so the consumption is there,” said Malek Azizeh, commercial director of Fujairah Oil Terminal. https://www.bunkerworld.com/news/157422

Idemitsu Plant Raises VSLFO Output – Ship and Bunker

Demand for high sulfur fuel oil from Japanese ship operators remains small post IMO2020

https://shipandbunker.com/news/apac/171237-idemitsu-plant-raises-vslfo-outputhttps://shipandbunker.com/news/apac/171237-idemitsu-plant-raises-vslfo-output

South Korea declares local SECAs – Ship Insight and Dry Bulk

The Republic of Korea (South Korea) is the latest country to announce the designation of national sulfur emission control areas, which will enter into force on 1 September 2020.

The national South Korean sulfur restrictions will apply to the following six ports, and a national sulphur emission control area has been defined for each port

https://shipinsight.com/articles/south-korea-declares-local-secas

https://www.drybulkmagazine.com/shipping/03072020/republic-of-korea-implements-national-sulfur-emission-control-area/

RPT-Marine fuel market facing tougher Q3 as supply rises

* VLSFO market weighed down by rising supplies, weak demand

* Global fuel oil supply to increase 620,000 bpd in Q3 -analyst

* Bunker demand to remain depressed in Q3

https://www.reuters.com/article/global-oil-shipping-idUSL4N2EA2FU

Hong Kong Shipping Gazette  News hksg.com Read the full article below:

Cosco about to complete planned scrubber installations

CHINA’s Cosco Shipping Lines (Cosco) is about to complete scrubber installations, a plan that was announced in 2019.

Three vessels owned by China Shipping Container Lines (CSCL) before Cosco acquired the group as part of the government’s move to consolidate state-owned companies, CSCL Mercury, CSCL Jupiter and CSCL Saturn, 14,000 TEU sister container ships, arrived in the Liuheng yard of Cosco Shipping Heavy Industry (Zhoushan), on June 14, 2020.

The ships are the last of 10 vessels that Cosco earmarked in 2019 for scrubber retrofits, which usually take 15 to 30 days, depending on the size of the vessel, reports Container News, Jacksonville.

The scrubbers are provided by Finnish firm Valmet, which has four production units and three service centres in China. Scrubber-fitted ships can continue burning, cheaper, high-sulphur fuel oil and comply with the International Maritime Organization’s emission regulations that became effective this year.

The scrubber system delivery for Cosco Shipping Lines will include a tailor-made open-loop scrubber system for main engine and generator engines including auxiliary systems and automation.

In its 2019 financial report, the shipping line said that as at the end of the year, scrubber installations were completed on seven of the ships. The retrofitting schedules were planned according to the route and refuelling ports of the ships, as Zhoushan is a major bunkering port in China.

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