As it is only 78 days to the introduction of the IMO Sulphur 2020 Cap, it is not surprising that there is a lot in the news about the latest developments, trends and compliance. So we are going to be producing regular news updates featuring the key stories for you to look at.
The latest news and views from the shipping industry collated by Sulphur2020.online
European Shippers’ Council and Drewry announce IMO 2020 fuel-cost indexing mechanism
The guide aims to help shippers monitor and control bunker charges as shipping lines switch to the more expensive fuel required under the IMO 2020 low-sulphur regulation
By Will Waters Lloyds Loading List| Monday, 14 October 2019 Read the full story here
Gunvor to start producing IMO-compliant fuel oil mid-2020. Reuters by Julia Payne
LONDON (Reuters) – Gunvor Group [GGL.UL] will overhaul its refinery in Rotterdam in March next year and reconfigure the plant to produce some low sulfur fuel oil that complies with new, global shipping rules, its chief executive officer said. Read article here
From Bunkerspot – EUROPE: Gunvor’s ARA refinery network set to produce VLSFO in Q2 2020
Gunvor Group has confirmed to Bunkerspot that its Rotterdam and Amsterdam refineries will be ‘working in synergy’ to start producing the 0.50% very low sulphur fuel oil that meets the new IMO 2020 requirements from Q2 of 2020. Subscription needed. Read more
Splash 24/7 – India toys with giving domestic shipping a sulphur cap pass
The Hindu Business Line, one of India’s premier financial newspapers, is reporting New Delhi is contemplating not imposing the global sulphur cap – due to start in 117 days – for ships plying domestic waters.
A similar mooted move was floated by Indonesian authorities six weeks ago, before Jakarta stepped back into line with the global regulation. Read more
VPO – IMO sulphur 2020 and the role of advanced marine fuel management systems
Damian McCann, product manager for enginei EFMS, looks at how the IMO’s Sulphur 2020 regulations will put even greater importance on fuel management efficiencies.
As IMO Sulphur 2020 draws ever closer, the focus on vessel fuel implications grows ever stronger. In particular it is widely accepted that the costs of refining low sulphur fuel will inevitably increase fuel prices.
In turn, this is likely to put even more importance on fuel consumption and operating efficiency matters, reinforcing a marine sector trend in favour of effective electronic fuel management systems (EFMS) that has rapidly gathered pace in recent years. Read more
Lloyd’s List – Questions remain over carriers’ ability to pass on 2020 sulphur costs by Cichen Shen
The climate agenda red tape that hits the global shipping industry in January 2020 poses enormous difficulties for liner shipping carriers. They need to work out whether they will be able to successfully pass on the higher fuel bill costs to shipper clients. The issue of rising costs will not only be decided by the spread between LSFO and HSFO and the methodology used in carriers’ BAF formulas. More importantly, the issue of costs will be greatly affected by the supply-and-demand picture next year amid a backdrop of rising economic and geopolitical uncertainties, a shipping conference is told. Leading freight forwarder Kuehne + Nagel is extremely cautious about securing long-term contracts into 2020 against a backdrop of high volatility in fuel prices. Subscription needed more
Marine fuels supplier, Peninsula Petroleum Group (PPG) has renewed and increased its Asian receivables finance facility. By Tanker Operator
This takes the group’s bank liquidity to over $800 mill.
PPG’s Asian facility, led by HSBC in participation with United Overseas Bank, saw the total amount rise from $225 mill to $285 mill with both lenders increasing their respective ticket sizes and renewing the committed tranche of the facility by a further two years. This Asian facility follows the group’s recent renewal, increase and add new participants to its European receivables facility together with the addition of inventory finance solutions, the company said. These increased lines enhance the diversity of Peninsula’s funding package beyond 2021, whilst further enabling the business to provide solutions to clients in the higher price environment expected, due to IMO2020, the company explained. More
IMO 2020 – 22% unable to comply – Palau Registry survey funnel – Seatrade Online
An IMO 2020 survey by Palau International Ship Registry (PISR) provides insight into the readiness of smaller owners for the sulphur cap with some 22% saying there is no way they can comply.
The survey conducted in recent months by the registry saw 337 responses in total and 219 from shipowners and managers. Of the shipowners and manager the majority 68% had small fleets of 1 to 7 vessels, 8.68% had 8 -10 vessels, and 22.37% of respondents a fleet of 10 or more vessels
HSFO Supply Post-IMO2020 Not an Issue: Survey – Ship and Bunker
Main bunkering ports to carry full range of bunker fuel from next January – Tradewinds Survey. Read in full here
2020 as 1984: almost a nightmare for shipowners by http://www.ship2shore.it/
At Intercargo’s semi-annual meetings in Athens, members say that the deadline dominates dry bulk shipping’s challenges. Subscription required more here