New IMO greenhouse gas study is an important tool for policy decisions
The International Maritime Organization (IMO) has published its 4th Greenhouse Gas (GHG) study, and BIMCO finds the results very encouraging, as data confirms the industry can reach the 50% lower IMO emissions target in 2050.
Optimise Port Call Timing to Reduce GHG Emissions: IMO
The UN body noted new research showing ships spend up to 9% of their time waiting at anchorage.
Stricken Bulk Carrier Wakashio Has Spilled Quarter of its Bunkers in Mauritius
About 1,020 mt of VLSFO has been pumped off the vessel, and about 1,600 mt remains along with 200 mt of marine diesel oil.
IMO Releases its Fourth GHG Study: Here Are 4 Key Findings
Domestic shipping emissions drastically underestimated; operational measures should be used to reduce emissions; prepare for regulations “loophole” on methane, Black Carbon to be closed.
IMO’s fourth climate report reveals increasing CO2 emissions from shipping
IMO just presented its fourth and much-anticipated report on shipping’s CO2 emissions. The new report reveals that shipping’s emissions have been on the rise in recent years. Transport & Environment calls the development alarming.
How COVID-19 Helped To Simplify The Transition To Low-Sulphur Diesel In The Shipping Business
Any crisis, whether in energy or any other sector, inevitably creates unanticipated costs and benefits. The crisis created by the COVID-19 pandemic has produced all manner of unforeseen consequences in the energy and environment space, both in the U.S. and globally. This has certainly been true in the maritime transport sector as well.
Containerships Overtake Tankers as Most Scrubber-fitted Sector -BIMCO
Containerships with a collective cargo carrying capacity of 5.3 million 20-foot equivalent units (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 January 1, 2020.
Regional sulphur emission limits at a glance
A number of regions, states and ports around the world have implemented their own strict sulphur emission limits – and the list of such places is likely to grow in the future. Ship operators must therefore ensure crews are familiar with the sulphur emission limits in force in the jurisdiction to which they trade.
Here is the first news update of 2020 and marks the introduction of the IMO’s global Sulphur cap. Below you will find a number of stories related to the 2020 sulphur cap and its affects on the global shipping and international trade.
US amends rules to allow sale of 0.5% sulphur marine fuel. US OIL refineries will be allowed to distribute and sell shipowners marine fuels with a sulphur content of up to 0.5% instead of only 0.1% after a change in regulations by the country’s energy regulators.
The Environmental Protection Agency announced a ‘technical correction’ to the diesel fuel regulations to allow fuel suppliers to distribute distillate diesel fuel that complies with the IMO 2020 0.5% standard. Before the change, refiners could sell only fuel with a sulphur content of 0.1% or lower. More (Subscription)
China Stocks up on VLSFO Ahead of IMO2020 Deadline
Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany’s Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1. More
‘Standard’ survey reveals non-standard approach to IMO 2020
With IMO’s sulphur cap now just days away, what can shipowners and operators expect when their vessels arrive in different port state jurisdictions? Will compliant fuel be available and will there be a uniform approach to dealing with violations?
-This short survey reveals some interesting results about the global approach to the new low sulphur fuel cap. More
Lloyd’s Register issues alert over Singapore low sulphur fuels
Testing company says some bunkers may have excessive sediment.
Lloyd’s Register has issued is warning to shipowners and operators that some of the very low sulphur fuel oil (VLSFO) on sale in Singapore has shown sediment levels above the ISO standard. More (Subscription)
High sediment reported in IMO 2020-fuel blends
Recent industry studies show test samples of 0.5%-sulphur fuel products can often contain high sediment, which risks clogging in ship engines. This follows on from the pre-Christmas alert concerning some VLSFO on sale in Singapore. More (Subscription)
Possible fuel contamination at Port of Fujairah
The tested TAN values were all significantly over the average for the port (0.17mgKOH/g), with some even surpassing the maximum 2.5 mgKOH/g specification limit as stipulated in ISO 8217:2017. Past experience has shown that some of these components have been linked with severe operational problems, particularly around filters, fuel injection pumps and fuel injectors.
Latin America sees limited supply, rising prices for IMO-compliant bunkers
With just hours until the official implementation of the IMO 2020 sulfur cap, Latin America continues to see tight supply and rising prices for fuel compliant with the landmark rule.
Singapore to be short of LSFO in 2020 until China starts to export
“It is impossible for Singapore to get 6 million mt a month of LSFO,” a fuel oil trader said.
India’s BPCL starts VLSFO delivery ahead of IMO 2020
The fuel has a sulfur content of 0.44% and a viscosity of 336 CST.
Ship & Bunker
IMO2020: BIMCO Warns Over Blending Remaining HSFO Onboard Instead of Debunkering
Ships looking to blend any remaining HSFO onboard after the 0.05% sulfur cap comes into force, rather than debunkering it, could face running into compliance problems.
Tanker Shipping & Trade
How IMO 2020 will benefit the product tanker fleet
While IMO 2020 is expected to bring great benefits to the product tanker market, the geopolitical situation yet could dampen its impact. It is generally expected that something momentous will happen in the product tanker market in 2020, due to the need to ship large quantities of low-sulphur fuel, marine diesel oil and/or blended fuels from refinery to port.
Ship & Bunker
Iran Says Shipping Fleet Will Struggle to be IMO2020 Compliant
Iran’s shipping fleet will not be able to comply with the upcoming IMO2020 global sulfur cap when the new rules come into force on Wednesday, officials warned.
Indonesia’s Pertamina starts production of low sulfur marine fuel from Plaju refinery
MFO part of the company’s efforts to provide cleaner fuels in compliance with IMO 2020.
Fujairah low sulfur bunker price hits new record high as IMO 2020 looms
The price of low sulfur bunker fuel at the Middle Eastern bunkering hub of Fujairah has soared to a brand new high, as demand for IMO-compliant fuel rose significantly in December, with less than a few weeks to go before the new sulfur limit mandate begins in January 2020.
MARINE FUEL ROUNDUP: ExxonMobil starts VLSFO deliveries at three ports
Exxonmobil said it has started sales of 0.5% sulfur fuel oil to the bunker markets at Fos/Marseille, France, at Genoa, Italy, and at Laem Chabang, Thailand.
Fujairah Port to conduct random checks for IMO compliance
The Persian Gulf’s bunkering hub of Fujairah plans to conduct random checks in 2020 on ships taking bunker fuel at the port.
Shipping Watch: Container rates soar ahead of 2020
Container rates increased 9 percent last week, show data from the SCFI. Jefferies says scrubber retrofits and new bunker surcharges inflate rates, while SeaIntelligence Consulting CEO Lars Jensen mainly sees effects tied to preparations up to 2020. More https://shippingwatch.com/secure/carriers/Container/article11795129.ece (subscription needed)
Maritime Executive: Nautilus: Mariners Risk Criminal Charges for IMO2020 Noncompliance
Mariners’ union Nautilus International is concerned that the new IMO 2020 sulfur regulations could lead to criminal penalties for officers in the event of non-compliance, and it has called on vessel operators to ensure high levels of training and preparation in advance of the impending switchover. More https://www.maritime-executive.com/article/nautilus-mariners-risk-criminal-charges-for-imo2020-noncompliance
Tradewinds: Problems with global sulphur cap still linger, Greece warns
Greece, one of the most influential voices in the IMO, has warned that shipping is not yet ready for the global 0.5% sulphur cap, which is set to take effect next month. “A month before the implementation, availability, compatibility, safety and quality issues of the new fuels have not been resolved yet,” Greek Shipping Minister Yiannis Plakiotakis said at the 19th Navigator Conference.
Safety4Sea: The second SAFETY4SEA Singapore Forum was successfully concluded on Wednesday 14th of November 2019 at Marina Bay Sands Expo & Convention Center, Singapore, attracting 250 delegates from 120 organizations.
Mr. Nick Makar, Senior Vice President, Maritime Administration / Regulatory Affairs, International Registries (Far East) Limited discussed the existing regulatory framework for the enforcement of air emission standards under MARPOL Annex VI, and looked at the various measures incorporated into national maritime policies for achieving 2020 compliance. Watch the presentation
Hong Kong Daily News – full article below http://www.shippingazette.com/:
Maersk to sack 200 in face of 25pc fuel price hike result of UN edict
THE world’s biggest shipping company, AP Moller-Maersk, will lay off some 200 people to cut costs as it faces a 25 per cent higher fuel costs because of a United Nations mandate to cut sulphur emissions, reports the Wall Street Journal.
“We have announced internally the need to save cost in our head office functions and that it will also lead to reductions both in and outside Denmark,” a Maersk spokesman said.
Sources say jobs will be cut at the company’s headquarters in Copenhagen and at Hamburg Sud, the German container operator that Maersk bought in 2017.
Maersk is to focus more end-to-end logistics, warehousing and customs clearance. “Maersk needs to build up our non-ocean services and this will affect ocean services,” one person familiar with the plan said.
This source said there are overlaps in jobs at the information technology department following the merger with Hamburg Sud, which originally saw its workforce cut by 200 people to around 900 after Maersk’s takeover.
Maersk employs 75,000 people in more than 120 countries. The parent company this month reported a net profit of US$520 million in the third quarter, up 30 per cent year on year.
Ship and Bunker – 3 articles:
IMO 2020 the “Perfect Storm” for Litigators
The new cap will put a lot more focus on what has happened to the bunkers onboard, says Hill Dickinson Partner, Beth Bradley. Read in Full https://shipandbunker.com/news/world/256137-imo-2020-the-perfect-storm-for-litigators
IMO2020 Fuel Switch ‘Done by December 10’
Shipowner expects distillate demand to be buoyand over short term. Read in Full
New Report Provides Insight into the World’s Top 10 Bunker Suppliers for 2020. The new report has been jointly produced by Ship & Bunker and SeaCred.
Read in Full https://shipandbunker.com/news/world/421955-new-report-provides-insight-into-the-worlds-top-10-bunker-suppliers-for-2020
Bunkerspot: OilChart ‘positioned and ready’ to meet IMO 2020 fuel demand
The group says it can supply all IMO 2020-compliant fuels and is also offering a buy back scheme for remaining high sulphur fuel oil on board vessels as the end of the year approaches. More https://www.bunkerspot.com/europe/49492-europe-oilchart-positioned-and-ready-to-meet-imo-2020-fuel-demand
DREWRY PUBLISHES FIRST LOW-SULPHUR BAF REFERENCE PRICE
With the new IMO 2020 start-date now less than a month away, maritime consultancy Drewry has published its first low-sulphur reference bunker index tracker.
The new index will be updated quarterly. Philip Damas, head of Drewry Supply Chain Advisors, commented: ‘Our new low-sulphur bunker price tracker is intended to standardise, clarify and simplify the adjustment of Bunker Adjustment Factors (BAFs) between shippers and carriers or forwarders.
Lloyds List: Bunker tool seeks to standardise low-sulphur charges
As carriers start loading low-sulphur bunkers, they have begun passing on costs to customers. A new index provides a standardisation process. Confusion and concern remain about the timing and transparency of carriers’ low-sulphur cost recovery mechanisms. More https://lloydslist.maritimeintelligence.informa.com/LL1130260/Bunker-tool-seeks-to-standardise-lowsulphur-charges subscription required
Safety4Sea: 2020 sulphur cap: Litigators to face storms of fuel-compliance issues
Although the shipping industry has been preparing for the upcoming 2020 sulphur cap, international maritime law specialist Hill Dickinson comments that it will be a challenging period for litigators as they will have to deal with disputes between owners, charterers and bunker suppliers in cases of non-compliance
S&P Global Platts: Nigeria’s low-sulfur Egina crude sees IMO 2020 boost
Nigeria’s Egina crude has seen values rise as its low-sulfur qualities make it attractive to refiners ahead of the International Maritime Organization’s stricter 0.5% sulfur cap on marine fuel coming into force from January 1, sources said. https://www.bunkerworld.com/news/155902 subscription required
Gazprom Neft plans launch of distillate-based 0.5% fuel in 2020
Russian oil major Gazprom Neft plans to supply 0.5% sulfur marine fuel from its Omsk refinery in 2020, company officials said in an interview on the company’s website. https://www.bunkerworld.com/news/155911 subscription required
Lloyd’s List: The Interview: Hugo De Stoop
Mr De Stoop leads one of the largest crude oil tanker companies in the world. Over the past couple of years, Euronav has positioned itself as an environmentally conscious company that wants to help the wider industry combat its emissions. Mr De Stoop talks to Lloyd’s List about what the future has in store and what the company learned in preparing for the global sulphur cap. https://lloydslist.maritimeintelligence.informa.com/LL1130267/The-Interview-Hugo-De-Stoop
Handy Shipping Guide
Maritime Advisory Group Introduces Low Sulphur Fuel Index Tracker
Variable Bunker Costs Post Cap Addressed
As part of a series of initiatives aimed at bringing greater transparency to fuel costs resulting from the new IMO 2020 low-sulphur regulation, maritime advisory, statistics and research group Drewry has published its first low-sulphur reference bunker index tracker.
Drewry says that in recent months, both shippers and forwarders have expressed confusion and concern over the timing and transparency of the new charges being introduced by carriers as they transition from IFO 380 (intermediate fuel oil) to the new, low-sulphur fuel standard. Others have complained about what they consider unfair Bunker Adjustment Factor (BAF) charges.
Drewry’s new low-sulphur BAF index, which will be updated quarterly, provides a simple indexing mechanism to help determine changes in BAF charges during the lifetime of a contract. http://www.handyshippingguide.com/shipping-news/maritime-advisory-group-introduces-low-sulphur-fuel-index-tracker_12521