News Round Up – 27 April 2020

Apr 27, 2020 | News Update, sulfur 2020, Sulphur 2020 | 0 comments

Seatrade: 31 Singapore-flagged vessels report scrubber malfunctions

Singapore-flagged vessels reported 31 scrubber malfunctions as of the end of February 2020.

Releasing figures on IMO 2020 compliance the Maritime & Port Authority of Singapore (MPA), which administers the Singapore Registry of Ships (SRS), said that of the “small number” of Singapore-flagged vessels fitted with scrubbers there were 31 reports of malfunctions as February 29 this year.

https://www.seatrade-maritime.com/ship-operations/31-singapore-flagged-vessels-report-scrubber-malfunctions

Bunkerspot: GLOBAL: Integr8 Fuels: HSFO will remain a feature of the bunker market

High sulphur fuel oil is going to be there for the long haul’ but sound market intelligence and close monitoring of avails and pricing levels will be required, says Steve Christy, Director of Strategic Communications at Integr8 Fuels.

https://www.bunkerspot.com/global/50353-global-integr8-fuels-hsfo-will-remain-a-feature-of-the-bunker-market

Bunkerspot: GLOBAL: VeriFuel releases Q1 2020 fuel quality statistics

Very low sulphur fuel oils accounted for 49% of samples tested by Bureau Veritas VeriFuel in the first quarter of 2020, with the percentage of VLSFOs meeting the 0.50% sulphur limit growing from just under 89% in January to over 95% in March.

https://www.bunkerspot.com/global/50369-global-verifuel-releases-q1-2020-fuel-quality-statistics

Bunkerspot: EUROPE: Southern European ports reflect narrowing high-low sulphur fuel price differential

Bunker prices in five key ports in Southern Europe are, by and large, mirroring the price trends seen at Rotterdam, but with some ports showing an even narrower price differential between high sulphur fuel oil and very low sulphur fuel oil than at the Northern European bunker hub.

https://www.bunkerspot.com/europe/50378-europe-southern-european-ports-reflect-narrowing-high-low-sulphur-fuel-price-differential

Lloyd’s Loading List: Lines under pressure to cut ‘obsolete’ low sulphur surcharges

The crash in crude oil prices and consequent severe reduction in bunker costs is increasing calls from customers for savings to be passed on by carriers

https://www.lloydsloadinglist.com/freight-directory/news/Lines-under-pressure-to-cut-%E2%80%98obsolete%E2%80%99-low-sulphur-surcharges/76435.htm

 

Daily Splash: Singapore detains two vessels for using non-compliant fuel

The Maritime and Port Authority of Singapore (MPA) has reported two vessel detentions for using non-compliant fuel in the first quarter to ensure the implementation of IMO 2020 sulphur regulations. According to the MPA, about 96% of the ships that arrived in the Port of Singapore used compliant fuel in the first quarter, excluding ships […]

https://splash247.com/singapore-detains-two-vessels-for-using-non-compliant-fuel/

Ship and Bunker: Scrubber Economics Under Pressure as Rotterdam HSFO Discount Narrows Below Key $50/MT Barrier

The discount for high Sulphur bunkers in Rotterdam has for the first time narrowed to under $50/mt, a level seen as an important psychological barrier for scrubber economics.

https://shipandbunker.com/news/emea/433053-scrubber-economics-under-pressure-as-rotterdam-hsfo-discount-narrows-below-key-50mt-barrier

Ship and Bunker: VLSFO Price Hits New Low, Bunker Costs Lowest Since 2016

The price of IMO 2020 compliant VLSFO bunkers in the four major bunkering hubs hit a new low Thursday alongside the continuing decline in the price of crude.

Ship & Bunkers Global 4 Ports (G4) index that tracks the average bunker prices across Singapore, Fujairah, Rotterdam and Houston, indicated the average VLSFO price Thursday fell to 235.50 $/mt – its lowest since records for VLSFO began in October last year.

https://shipandbunker.com/news/world/205725-vlsfo-price-hits-new-low-bunker-costs-lowest-since-2016

Ship and Bunker: TFG Marine to Join Singapore Bunker Market at Start of May

Global bunker supplier TFG Marine plans to join the Singapore bunker market at the start of May, after being awarded its license to operate in the world’s largest bunkering hub this week.

https://shipandbunker.com/news/apac/849963-tfg-marine-to-join-singapore-bunker-market-at-start-of-may

Freight Waves: Diesel’s price decline Tuesday was historic; crude’s fall sets another record

A day after crude oil trading on a major exchange turned negative, the price of ultra low sulfur diesel on the same exchange did something it hadn’t done in almost 30 years.

https://www.freightwaves.com/news/diesels-price-decline-tuesday-was-historic-crudes-fall-sets-another-record

Ship and Bunker: FEATURE: Rotterdam-Singapore Bunker Cargo Trade Collapses on IMO 2020 Changes

One of the less remarked-upon casualties of IMO 2020 so far has been the near-total collapse in the fuel oil cargo trade around Northwest Europe.

The high Sulphur fuel oil trade flow from Russia to Western Europe, and the on from the Amsterdam-Rotterdam-Amsterdam hub over to Singapore, used to be one of the mainstays of the bunker market.

https://shipandbunker.com/news/world/755801-feature-rotterdam-singapore-bunker-cargo-trade-collapses-on-imo-2020-changes

Ship and Bunker: Scrubber Retrofits Continue Despite Narrowing Price Advantage

Some container lines are persevering with scrubber retrofits despite the recent narrowing in high-sulfur fuel oil (HSFO) discounts that makes them look less profitable, according to shipping intelligence service Alphaliner.

https://shipandbunker.com/news/world/476322-scrubber-retrofits-continue-despite-narrowing-price-advantage

Bunkerspot: GLOBAL: VeriFuel releases Q1 2020 fuel quality statistics

Very low sulphur fuel oils (VLSFO) accounted for 49% of samples tested by Bureau Veritas VeriFuel in the first quarter of 2020, with the percentage of VLSFOs meeting the 0.50% sulphur limit growing from just under 89% in January to over 95% in March.

https://www.bunkerspot.com/global/50369-global-verifuel-releases-q1-2020-fuel-quality-statistics

Shippingwatch: Major oil fluctuations rub off on shipping lines’ fuel prices

The massive fluctuations in the oil price in recent days mean that the price of low-sulfur in the US on Wednesday was lower than that of high-sulfur fuel, notes shipping analyst Lars Jensen. Oil prices increase Thursday.

https://shippingwatch.com/carriers/Container/article12093913.ece

Seatrade: Bunker prices slip, high-low sulphur spread narrows to $56

Marine fuel prices have dropped significantly this week with the low sulphur grade nearing below $200 per metric tonne (pmt), narrowing its price differential with the high sulphur grade.

https://www.seatrade-maritime.com/bunkering/bunker-prices-slip-high-low-sulphur-spread-narrows-56

Heavylift: Clarity needed on bunker surcharges

Few could have predicted the rapid drop in marine bunker prices, or the differential between VLSFO and HFO narrowing so quickly, when the IMO’s sulphur 2020 regulations came into effect on January 1.

While shipping lines welcome the cheaper bunkers, the European Association for Forwarding, Transport, Logistics and Customs Services (Clecat) said that forwarders are yet to benefit from the 35 percent drop in fuel prices because of the one-to-two month lag in bunker fuel surcharge calculations.

Relaying the concerns of the European freight forwarding community, Willem van der Schalk, president of Clecat, said: “This gives rise to the suspicion that carriers are using the bunker adjustment factor (BAF) as a revenue-raising tool as well as a cost-recovery during the Covid-19 crisis.

“Whereas freight forwarders understand that carriers are facing increased costs to secure continuity of services, all other parties in the logistics supply chain are facing disruption and fall outs, not the least our clients, the shippers.”

The association is calling for greater transparency when it comes to fuel costs, especially as the supply chain tries to navigate these uncertain times.

https://www.heavyliftpfi.com/

Bunkerspot: EUROPE: Southern European ports reflect narrowing high-low sulphur fuel price differential

Bunker prices in five key ports in Southern Europe are, by and large, mirroring the price trends seen at Rotterdam, but with some ports showing an even narrower price differential between high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) than at the Northern European bunker hub.

https://www.bunkerspot.com/europe/50378-europe-southern-european-ports-reflect-narrowing-high-low-sulphur-fuel-price-differential