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.
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
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 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
News Update 31 August 2020
Here are 13 news stories that have appeared over the past week including the impact of the slowdown on the trade and prices.
The South Asian country started importing 0.005% sulfur gas oil in July. Read here https://www.bunkerworld.com/news/157933
Spot market volatility props up HSFO demand. Read here https://www.bunkerworld.com/news/157933
Transition to low sulphur fuel not without problems, survey shows – Ship Management International
A survey has shown that the transition to IMO 2020 compliant fuel oil has not been without problems.Between February and May 2020 BIMCO, The International Chamber of Shipping (ICS), INTERCARGO and INTERTANKO conducted The Fuel Oil Quality and Safety Survey with the aim to get a greater understanding of the quality of the new0.5% sulphur fuel oils and possible safety implications of the IMO 2020 sulphur regulation. Read article here https://shipmanagementinternational.com/transition-to-low-sulphur-fuel-not-without-problems/
CPCL says initial runs will be 5,000 mt a month. Read here https://www.bunkerworld.com/news/157929
Worldscale flat rates are set annually and are used as the basis of some freight markets with trades being made at a differential to them. Read here https://shipandbunker.com/news/world/884650-alphatanker-sees-2021-worldscale-flat-rates-drop-by-20-25-on-vlsfo-collapse
Delivered-Durban 0.5% sulfur fuel oil bunker prices reached $435/mt on Aug. 25, up from $374/mt on Aug. 21 in just two consecutive trading sessions, S&P Global Platts data shows. Read here https://www.bunkerworld.com/news/157920
While HSFO has rallied strongly, VLSFO prices remain significantly lower than their levels before the OPEC+ row hammered markets. Read here
South Korea’s new Emission Control Area, requiring ships to use fuel with maximum 0.1% sulfur content while berthing from Sept. 1, is expected to have a minimal impact, market sources said in the week started Aug. 23. Read here https://www.bunkerworld.com/news/157904
Ultra low sulfur fuel oil remains cheaper than marine gasoil but only marginally as price differentials narrowed to an eight-month low in Europe, S&P Global Platts data showed. Read here https://www.bunkerworld.com/news/insight/157903
Once a staple of the bunkers market, demand for high sulfur (3.5%) fuel oil was expected to drop off a cliff after IMO 2020 — — the lower, 0.5% sulfur cap on marine fuel globally since Jan. 1. Read here https://www.bunkerworld.com/news/157943
The Singapore 380 CST high sulfur fuel oil cash differential over the grade’s swaps values slipped into negative territory on Aug. 27 due to declining demand from Saudi Arabia. Read here https://www.bunkerworld.com/news/157946
The company mostly cited this year’s slowdown in shipping as being behind its worsening performance. Read here https://shipandbunker.com/news/apac/187721-straits-inter-logistics-sees-63-drop-in-oil-trading-and-bunkering-profit
NEWS UPDATE 6 JULY – 4 Great stories to read
“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
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
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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%.
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.
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.
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.
Bunkerspot: GLOBAL: The Bunkerspot Debate – 2020: expectations, realities – and black swans
The first online free-to-access Bunkerspot Debate is today available to view. In this discussion, four leading maritime lawyers – Beth Bradley of Hill Dickinson, Harald Søndergaard of Hafnia Law Firm, Andrew Preston of Preston Turnbull and Steve Simms of Simms Showers – give their expert insights on IMO 2020, bunker claims, sanctions, force majeure, and the impact of COVID-19 on the marine fuel and shipping industries.
The online Bunkerspot Legal Debate is the first in a series of focused debates which will look at key trends and developments in the marine fuel sector from an operational, commercial and technical point of view.
Bunkerspot: EUROPE: EC publishes first annual report on shipping’s CO2 emissions
During the first reporting year of 2018, 11,600 ships submitted fuel consumption data and were responsible for 138 million tonnes of CO2 emissions in the European Economic Area – with containerships proving to be the largest emitters, accounting for 18% of the monitored fleet and 30% of total CO2 emissions.
Bunkerspot: EUROPE: Danish companies team up to develop sustainable fuels for road, maritime and air transport in Copenhagen area
A.P. Moller – Maersk, Copenhagen Airports, DSV Panalpina, DFDS, SAS and Ørsted have joined forces to develop an ‘industrial-scale’ facility to produce sustainable fuels for road, maritime and air transport in the Copenhagen area.
In a statement issued today (26 May), the companies said that the hydrogen and e-fuel production facility could be ready ‘as soon as 2023’ and when ‘fully scaled-up by 2030’, it could ‘deliver more than 250,000 tonnes of sustainable fuel for buses, trucks, maritime vessels, and airplanes every year’.
Bunkerspot: GLOBAL: Wärtsilä upgrades FuelFlex ICU to deal with low sulphur fuels
Wärtsilä has launched a FuelFlex Injection Control Unit (ICU) upgrading solution to meet the requirements of operating its RT-flex type two-stroke diesel engines with both residual and low-viscosity marine fuels.
In a statement issued yesterday (245 May), Wärtsilä said that the upgrade was ‘particularly relevant in view of the industry’s increasing use of low-sulphur-content fuels in order to be compliant with sulphur emission regulations’.
Bunkerspot: GLOBAL: ExxonMobil introduces next-generation multi-fuel marine cylinder oil, Mobilgard 540 X
Mobilgard 540 X, which has been formulated for use with 0.10% and 0.50% sulphur fuels – and LNG – will be available at global ports from June this year.
Announcing the launch of Mobilgard 540 X, ExxonMobil said its low base number (BN) formulation had passed stringent fit-for-use testing in newer engine designs. The product is also the first cylinder oil to be gas-validated by WinGD.
Bunkerspot: GLOBAL: Gazpromneft Q1 revenues down, but refining volumes up
Russia’s Gazpromnneft reported revenues of RUB515 billion for the first quarter (Q1) of 2020, down from RUB614 billion last year, but its refining volumes were up more than 3% to 10.3 million tonnes – and this included increased production of IMO 2020-compliant very low sulphur fuel oil (VLSFO).
Bunkerspot: EUROPE: Portsmouth International Port to pilot smart energy system
Portsmouth International Port is part of a Port Energy Systems Optimisation (PESO) project, co-funded by Innovate UK, which is intended to reduce carbon emissions and facilitate the electrification of port operations.
Bunkerspot: ASIA PACIFIC: Shanghai exchange to test LSFO futures trading
The Shanghai International Energy Exchange is to undertake a ‘mock test’ of Low Sulphur Fuel Oil futures trading between 1-12 June.
Bunkerspot: EUROPE: Norway proposes funding for ‘green recovery’ initiatives
The Norwegian government has outlined proposals for a NOK 3.6 billion strategy to cut industry GHG emissions, which could encompass battery technology, hydrogen and green shipping projects.
VPO: British Ports Association calls for boost in shore power to decarbonise shipping
The British Ports Association has issued a new report, “Reducing Emissions from Shipping in Ports: Examining the Barriers to Shore Power,” calling for the UK government to boost its support for shore power connections as a viable tool for meeting its net zero carbon emissions targets.
The report suggests that this cannot be done without public investment. The Association urges a zero-emission berth standard that would help create more certainty around investments in emissions reductions technologies.
VPO: Lubrizol joins the Getting to Zero Coalition
The Lubrizol Corporation has become the first lubricant additive technology supplier to join the Getting to Zero Coalition.
The Getting to Zero Coalition is an international group currently endorsed by 14 governments and composed of more than 100 organisations. It aims to drive the development of commercially viable, zero-emissions deep-sea ships by 2030. This partnership between the Global Maritime Forum, the World Economic Forum and Friends of Ocean Action boasts leading shipowners, ports, technology providers and fuel companies as well as academic and research institutions.
VPO: Finnlines continues EUR 500M green vessel programme
Finnish ship operator Finnlines is investing EUR 500 million to deploy ultra-green vessels as part of the company’s strategy to reduce fuel consumption and harmful emissions.
The new ro-ro vessels will be built with the latest technology available to ensure the lowest CO2 emissions. They will be equipped with lithium-ion battery systems that enable zero-emission operations in port. The first ro-ro vessel is expected to start operation as early as next year, and the other two in 2022.
Ship & Bunker: Star Bulk Sees Gains From Scrubber Spread Hedging
Dry Bulk Firm Star Bulk, one of the shipping companies most committed to scrubbers in the run-up to IMO 2020, has set out the details of a hedging programme that has gone some way to protect the company from the declining profitability of the system this year.
Ship & Bunker: Argentinian Bunker Sales Gained 70% in First Quarter
Bunker sales at Argentina’s ports jumped by 70% in the first quarter from the same period a year earlier, according to the Argentinian Petroleum and Gas Institute.
Ship & Bunker: SDE International Sees Singapore’s 2020 Bunker Demand Holding Steady
Singapore may be able to hold onto its 2019 bunker sales volumes this year despite the effect of the COVID-19 pandemic, according to consultancy SDE International.
Ship & Bunker: VPS Reports Sharp Decline in Non-Compliant VLSFO Samples
Disputes over the sulfur content of new IMO 2020-compliant fuel blends are likely to be declining, with fewer fuels now tested as being over the new 0.50% sulfur limit, according to testing company VPS.