15 SEPTEMBER 2021 – NEWS ROUND UP

15 SEPTEMBER 2021 – NEWS ROUND UP

UK calls for global 2050 net-zero shipping emissions target

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

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

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

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

Can The Global Shipping Industry Really Go Green?

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

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

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

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

Asia fuel oil: Cash premiums higher as cargo demand intensifies

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

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

Published 24th August 2021 by Business Recorder

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

 

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

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

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

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

Published 14th September 2021 by Business Recorder

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

15 SEPTEMBER 2021 – NEWS ROUND UP

25 MAY – NEWS ROUND UP

Amazon Invests in Cleaner Fuel for Shipping

 Amazon’s climate pledge fund has joined Mitsubishi Heavy Industries and three venture-capital partners in a funding round for Infinium Holdings, a startup focused on making synthetic hydrocarbon fuels from industrial CO2 sources and green hydrogen. 

Like other electrofuel ventures, Infinium seeks to produce high-energy-density products that are compatible with existing diesel engines and jet turbines. Its process takes a captured stream of CO2 from an industrial source – which today would be emitted directly into the atmosphere – and recombines it with green hydrogen in a chemical reaction to produce a liquid hydrocarbon fuel. This product could be burned in the same way as any standard refined petroleum product, like bunker fuel or over-the-road diesel, generating energy and releasing the captured CO2.

PUBLISHED JAN 26, 2021 10:55 PM BY THE MARITIME EXECUTIVE

Amazon Invests in Cleaner Fuel for Shipping (maritime-executive.com)

Exploring Producing Hydrogen from Natural Gas with Carbon Capture

ENGIE and Equinor announce the launch of a partnership to develop joint low-carbon hydrogen activities. The French and Norwegian energy companies said they will investigate the production and market potential for hydrogen from natural gas whereby the CO2 will be captured and stored permanently offshore.

Under the terms of the memorandum of understanding between the two companies, they will investigate the development of low-carbon hydrogen value chains in Belgium, the Netherlands, and France. In the coming months, ENGIE and Equinor will also start discussions with potential customers to assess the project, as well as with stakeholders and relevant authorities.

PUBLISHED FEB 19, 2021 5:40 PM BY THE MARITIME EXECUTIVE

Exploring Producing Hydrogen from Natural Gas with Carbon Capture (maritime-executive.com)

STAND.EARTH: IEA 2050 REPORT SPELLS THE END OF THE LINE FOR FOSSIL FUEL PROJECTS

The findings of the International Energy Agency’s (IEA) new report on the energy sector’s roadmap to net zero make it clear ‘that governments will need to take action to stop expanding oil, gas and coal projects and plan for a wind down,’ said Tzeporah Berman, International Program Director for environmental group Stand.earth and Chair of the Fossil Fuel Non-proliferation Treaty Initiative.

Published: 19 May 2021 By Bunkersport

GLOBAL: Stand.earth: IEA 2050 report spells the end of the line for fossil fuel projects – Bunkerspot – Independent Intelligence for the Global Bunker Industry 

Second wave of scrubber installations to support HSFO sales despite cleaner fuels shift

A second wave of scrubber installations will likely sweep the marine industry as the price differential between high sulfur fuel oil and very low sulfur fuel oil, or the Hi-5 spread, stabilizes to normal levels at major bunkering hubs, supporting HSFO demand at a time when there is a growing impetus towards greener fuels to meet shipping’s environmental goals, market sources said.

“After the quick adjustment to the global sulfur cap, the decline in HSFO’s share of total bunker sales has stopped,” BIMCO’s chief shipping analyst Peter Sand said in a report April 29.

Published 5th May 2021 08:09 GMT by Bunkerworld

Bunkerworld Blogs – Second wave of scrubber installations to support HSFO sales despite cleaner fuels shift

 

VLSFO Claim Numbers ‘Not Significantly Higher’ Than in
HSFO Era: Skuld

The number of fuel quality claims seen for VLSFO over the past year have not been significantly higher than in the pre-IMO 2020 era for HSFO, according to insurance association Skuld.

The company published a note on its website on Thursday detailing its experience of the IMO
2020 transition.

Published May 21 2021 by Ship & Bunker News

VLSFO Claim Numbers ‘Not Significantly Higher’ Than in HSFO Era: Skuld – Ship & Bunker (shipandbunker.com)

News Round Up: 17 August 2020

News Round Up: 17 August 2020

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.

https://www.bimco.org/news/priority-news/20200805-new-imo-greenhouse-gas-study

 

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. 

https://shipandbunker.com/news/world/804566-optimise-port-call-timing-to-reduce-ghg-emissions-imo

 

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.

https://shipandbunker.com/news/emea/926493-stricken-bulk-carrier-wakashio-has-spilled-quarter-of-its-bunkers-in-mauritius

 

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.

https://shipandbunker.com/news/world/457820-imo-releases-its-fourth-ghg-study-here-are-4-key-findings

News Round Up: 12 August 2020

News Round Up: 12 August 2020

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.

https://shippingwatch.com/carriers/article12320765.ece?

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.

https://www.forbes.com/sites/davidblackmon/2020/07/23/how-covid-19-helped-to-simplify-the-transition-to-low-sulphur-diesel-in-the-shipping-business/#34a60d3d5f3c

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.

https://www.marinelink.com/news/containerships-overtake-tankers-480922

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.

https://www.hellenicshippingnews.com/regional-sulphur-emission-limits-at-a-glance/

 

 

 

News update: 2 January 2020

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.

Lloyd’s List
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)

Marine Link
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 

ShipInsight
‘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

TradeWinds
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)

TradeWinds
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)

Infomarine 0n-line
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.
More

Bunkerworld
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.
More  (Subscription)

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.
More  (Subscription)

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.
More  (Subscription)

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.
More

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.
More

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.
More

BunkerWorld
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.
More  (Subscription)

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.
More  (Subscription)

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.
More  (Subscription)

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.
More (Subscription)

News Round Up 9 December 2019 – 24 days to 1 January 2020

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.
https://www.tradewindsnews.com/regulation/problems-with-global-sulphur-cap-still-linger-greece-warns/2-1-715972

 

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

https://www.youtube.com/watch?v=MKJ0LOqwcqA&feature=youtu.be

 

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

https://shipandbunker.com/news/world/102478-imo2020-fuel-switch-done-by-december-10-shipowner

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.

https://www.bunkerspot.com/global/49491-global-drewry-publishes-first-low-sulphur-baf-reference-price

 

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

https://safety4sea.com/2020-sulphur-cap-litigators-to-face-storms-of-fuel-compliance-issues/

 

 

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