Sulphur 2020 NEWS ROUNDUP – 28 October 2019
Lloyd’s Loading List – Carriers need to develop greener supply chains to meet IMO 2020 cost
James Baker | Monday, 28 October 2019
With the cost of compliance to new low-sulphur regulations set to top $10bn in the first year alone, box lines need to pass through the expense. But if presented correctly, they could use IMO 2020 to offer differentiated services More
Floating Storage for IMO 2020 Fuel builds in Asia – Marinelink
Stockpiles of low-sulphur marine fuels held in floating storage around the Singapore trading and pricing hub are steadily growing ahead of a 2020 global deadline for rules that have shaken the global oil refining and shipping industries.
A total of 32 ships, mostly supertankers capable of carrying 300,000 tonnes or more of oil, are currently anchored in Malaysian waters near Singapore accumulating stores of IMO-compliant fuels on board, according to data released by intelligence firm Kpler on 24 October. More
SHIP & BUNKER – INTERVIEW: Glander International Bunkering Talks Bunker Traders & IMO2020
New Sulfur Cap to drive new ways of thinking on how we approach the buying and selling of fuels, Morten Langthjem tells Ship & Bunker.
SHIP & BUNKER – ExxonMobil IMO 2020 Talking Points 05: Teekay Tankers, Singapore [VIDEO]
ExxonMobil challenge Teekay Tankers to a game of French Boules to talk about the fast approaching IMO 2020 deadline. https://shipandbunker.com/news/world/885590-exxonmobil-imo-2020-talking-points-05-teekay-tankers-singapore-video Watch video https://youtu.be/clPJMNNg8VE
Carriers need to develop greener supply chains to meet IMO 2020 cost
LLOYD’S LOADING LIST James Baker | Thursday, 24 October 2019
With the cost of compliance to new low-sulphur regulations set to top $10bn in the first year alone, box lines need to pass through the expense. But if presented correctly, they could use IMO 2020 to offer differentiated services https://www.lloydsloadinglist.com/freight-directory/news/Carriers-need-to-develop-greener-supply-chains-to-meet-IMO-2020-cost/75290.htm
SP & Platt – Term contracts for ex-wharf Singapore 0.5% marine fuel emerge as IMO 2020 nears
The Singapore bunker fuel market saw the first few term ex-wharf 0.5% marine fuel contracts inked recently as market participants continue to gear up for IMO 2020, which kicks off at the start of January 2020. SP & Platt subscription needed https://www.bunkerworld.com/news/155614
Onboard engineers face operational challenges post-2020
ShipInsight Paul Gunton · 23 October 2019
Many shipboard engineers have not received adequate training on handling sulphur-cap-compliant fuels, despite potentially having to deal with situations arising from stability and compatibility problems, believes a leading marine engineer who was involved in drafting MARPOL Annex VI.
Andy Wright, a fellow of the Institute of Marine Engineering, Science and Technology (IMarEST), told ShipInsight that the problems are not new, but “there’s a greater likelihood [of them occurring] than in the past” because “there is almost a surety of much greater variability than people have ever been used to in the past.” This variability will be particularly relevant, he said, “where you are pushed to take more fuel than you can store in a segregated manner.” https://shipinsight.com/articles/onboard-engineers-face-operational-challenges-post-2020
Chimbusco secures 4m tonnes of IMO 2020-compliant low sulphur fuel – Seatrade Article 23 Oct 2019
China’s state-owned bunker supplier Chimbusco revealed that it has secured at least 4m tonnes of very low sulphur fuel oil (VLSFO) and started initial supplies to all major Chinese ports from bonded storage, ahead of IMO 2020, reports said.
From 1 January 2020, all ocean-going ships will be required to burn bunker fuels with a maximum sulphur content of 0.5%, down from the current cap of 3.5%, under IMO’s Marpol Annev VI global regulation. https://www.seatrade-maritime.com/news/asia/chimbusco-secures-4m-tonnes-of-imo-2020-compliant-low-sulphur-fuel
Ship & Bunker 23 October 2019 – Compliant VLSFO fuel now available for Qatar
Compliant VLSFO fuel now available for Qatar LNG fleet and general shipping ahead of sulpur cap implementation https://shipandbunker.com/news/emea/504163-qatar-supplies-vlsfo-ahead-of-imo2020-switchover
BUNKERSPOT – EUROPE: VARO starts supply of VLSFO marine fuels in Bremerhaven in addition to port of Hamburg
VARO Energy has announced that it is expanding its supply of marine fuels to to Bremerhaven, in addition to the Port of Hamburg. https://www.bunkerspot.com/europe/49184-europe-varo-starts-supply-of-vlsfo-marine-fuels-in-bremerhaven-in-addition-to-port-of-hamburg
MARITIME CYPRUS – IMO 2020: Shipboard precautions concerning change-over to 0.50% sulphur compliant fuel
In order to comply with the new sulphur limit for fuel oil used on board ships taking effect from 1 January 2020, residual fuel oils with sulphur contents of 0.50% or lower (hereafter, referred to as “compliant fuel oils” in this booklet) will be distributed globally and loaded on board ships. Consequently, the number of occasions where fuels for main engines or auxiliary engines are changed from conventional fuel oils to compliant fuel oils and actually used will increase.
The Authors, having summarized the potential risks related to the changing over from conventional fuel oils to compliant fuel oils and the measures necessary to mitigate said risks, have decided to make this information available to the ship crew members who are actually responsible for such operations. https://maritimecyprus.com/2019/10/22/imo-2020-shipboard-precautions-concerning-change-over-to-0-50-sulphur-compliant-fuel/
LLOYD’S LIST – Total enters marine fuels venture with Zhejiang Energy
As global preparations for the biggest fuel switch the shipping sector has seen, Total and ZEG are joining forces to supply fuels to the Zhoushan region — including Shanghai and Ningbo. ZEG will control the majority of the new joint venture.
Lloyd’s List 21 October 2019 https://lloydslist.maritimeintelligence.informa.com/LL1129621/Total-enters-marine-fuels-venture-with-Zhejiang-Energy
Tight HSFO supply in Singapore raises arbitrage premiums over European values
Tight supply of high sulfur fuel oil in Singapore pushed premiums to a one-month high for derivative contracts measuring the arbitrage to Asia from Europe, amid rising freight rates and a shift toward low sulfur bunker fuels. https://www.bunkerworld.com/news/155590?tag=1-470280-28690183-0-BW
VPS launches new test for wax appearance temperature for VLSFOs
The new test will help address bunker fuel quality issues. https://www.bunkerworld.com/news/155589?tag=1-470280-28690183-0-BW
Both stories Subscription required S&P Platts
IMO 2020 presents challenges and opportunities for container shipping lines
Hong Kong Shipping Gazette article 23 October 2019
INDUSTRY experts have raised fresh concerns over the container shipping sector’s ability to recoup higher fuel costs that stem from the International Maritime Organization’s (IMO) new regulation that ships use maritime fuel with a sulphur content capped at 0.5 per cent, starting from January 1.
McKinsey partner Steve Saxon said there was “some good and some cautious news” for carriers in the period leading up to IMO 2020. “The good news is there will be sufficient supply of low-sulphur fuel oil (LSFO),” he told delegates at the TPM Asia conference held recently in Shenzhen, reported UK’s The Loadstar.