News Round Up 15 June 2020

News Round Up 15 June 2020

Ship and Bunker: Several Hundred Ships May Need Engine Upgrades to Cope with VLSFO

Running lower-viscosity fuels constantly may be causing engine problems for some older ships. Read in Full 

Ship and Bunker: VLSFO now available in Pakistan

The max 0.50% sulfur fuel is a straight run product with a viscosity range between 40 and 180 cSt. Read in Full 

Ship and Bunker: Brokerage NSI Warns Shipowners to Prepare for Lower Korean Sulfur Limit

The rule will just apply at berth and anchorage from September, but is due to be extended to cover all of South Korea’s waters from January 1, 2022. Read in Full 

Ship and Bunker: Repsol Expands VLSFO Supply Locations in Spain

From June the company can now deliver VLSFO by truck from 15 Spanish ports. Read in Full 

Ship and Bunker: Finland Trials “Sniffer Bouy” to Monitor Sulfur Regs Compliance

The trial began at the end of May with the pilot period running until autumn 2020. Read in Full 

Bunkerworld: Asian maine fuel market recovery slows amid thin demand,ample supply

Initial signs of recovery seen in the Asian marine fuel market have faded amid ample supply and slow demand with the contango structure weakening from three-month highs reached June 5, market sources said June 12. In Full »

Bunkerworld: European HSFO seeing support from dwindling supply

High sulfur fuel oil — the main marine fuel globally before IMO 2020, a ‘greener’ regulation from January 1 — has found support from a sharp drop in production, with the lack of volume in Europe underpinning its value. In Full »

Bunkerworld: Singapore’s residue stocks steady June 10 as bunker fuel demand still low

Singapore’s commercial onshore residue stocks were largely unchanged at 25.687 million barrels, or 4.05 million mt, as of June 10, when compared with 25.685 million barrels a week ago, Enterprise Singapore data released June 11 showed, as bunker demand has yet to recover. In Full »

Bunkerworld:  REFINERY NEWS: PetroChina Guangxi produces first VLSFO for bonded bunkering

A 3,250 mt batch of 0.5% sulfur marine fuel produced by PetroChina’s Guangxi Petrochemical became Guangxi’s first domestically produced fuel oil cargo to enjoy a value-added-tax rebate, a source at the refinery said June 12. In Full »

Bunkerworld: Pakistan’sOrion Bunkers targets barge fleet expansion

Pakistan’s Orion Bunkers Ltd. plans to expand its bunker barge fleet as demand for cleaner fuels gains impetus after the International Maritime organization’s global low sulfur mandate, the company’s director Zishan Arshad told S&P Global Platts. In Full »

Bunkerworld: Kiire emerges as major high sulfur bunker port in Japan with JXTG as sole supplier: traders

The port of Kiire, located in South Kyushu in western Japan, has emerged as a major high sulfur bunkering port in the country, with JXTG Nippon Oil & Energy starting as sole supplier there, bunker traders said June 12. In Full »

Bunkerworld: Japan marine fuel 0.5% differentials in discounts in June; market seen bottoming

The delivered Tokyo Bay marine fuel 0.5%S differential to Singapore 10 ppm gasoil cargo assessments has remained in discounts so far in June, averaging minus 53 cents/mt over June 1-10, compared with a premium of $7.56/mt over May 20-29 and a monthly average of $21.41/mt in May, S&P Global Platts data showed, as weak demand coupled with ample supply weighed on the market this month. In Full »

Bunkerworld:  Singapore 180/380 CST HSFO spread widens to 3-month high on strong 180 CST demand

The strong demand for 180 CST high sulfur fuel oil for power generation has widened the spread between FOB Singapore 180 CST HSFO and 380 CST HSFO, otherwise known as the viscosity spread, to a three-month high of $15.40/mt on June 10, fuel oil traders in Singapore said.

https://www.bunkerworld.com/news/insight/157245/Atsuko-Kawasaki/Singapore-180-380-CST-HSFO-spread-widens-to-3-month-high-on-strong-180-CST-demand

Bunkerworld:  Singapore July ex-wharf MF 0.5% S bunker term talks inconclusive on wide bid-offer spread

Negotiations for the term supply of Singapore ex-wharf marine fuel 0.5%S bunker for July were largely inconclusive so far, as the market was still awaiting cues on near-term price direction amid a wide bid-offer spread, market sources said June 9. In Full »

Bunkerworld: FEATURE: High Sulphur IFO 380 bunker fuelfaces reduced demand at LatinAmerican ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  FEATURE:High sulfur IFO 380 bunker fuel faces reduced demand at Latin American ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  European LSSR strengthens on VLSFO blending despite muted bunker demand

Northwest European low sulfur straight run values rose sharply June 8, following a competitive bid in the Platts Market on Close assessment process. In Full »

Bunkerworld:  Fujairah’s fuel oil exports fall to 18-month low with supplies held in storage

“Fuel oil in Fujairah storage will see seasonal pull from Saudi Arabia, which will soon ramp up HSFO imports,” Wright said. In Full »

Tank News International: HES Wilhelmshaven Tank Terminal LSFO production becomes operational

The Low Sulphur Fuel Oil (LSFO) production unit, which has a nameplate capacity of approximately 2.5 million tons of LSFO per year, located at HES Wilhelmshaven Tank Terminal GmbH (HWTT) in Germany has commenced operations. HWTT is a 100 per cent subsidiary of HES International BV.

 

https://www.tanknewsinternational.com/hes-wilhelmshaven-tank-terminal-lsfo-production-becomes-operational/

Bunkerspot: GLOBAL: Great Eastern ‘going ahead with scrubbers’ but ‘projects not going to be as good as originally envisaged’

Speaking during an earnings conference call last week, Great Eastern Shipping’s Chief Financial Officer G. Shivakumar said the company will ‘go ahead’ with its planned scrubber installations but accepted that ‘the projects are obviously not going to be as good as we had originally envisaged’ because of the reduced price differential between high and low sulphur fuel oils.

 

News Round Up 08 June 2020

News Round Up 08 June 2020

22 Industry insights into bunkering and rates, interestingly not everyone agrees to how rates will fair over the coming months.

US Bunker Demand Drop “as Much as 30%” Globally, both larger ports and larger players fairing better than their smaller counterparts, says IBIA. Ship & Bunker read in full  https://shipandbunker.com/news/world/698867-us-bunker-demand-drop-as-much-as-30

Integr8 Notes Bunker Prices Declining Relative to Other Refined Products. While spreads between products may be heading back towards previous levels, the bunker market should not expect outright prices to do the same yet, according to Integr8. Ship & Bunker read in full https://shipandbunker.com/news/world/921684-integr8-notes-bunker-prices-declining-relative-to-other-refined-products

Oil Up On OPEC Hopes As Virus Declines and Demand Builds Dominate The Business Landscape. Russia even suggests a crude shortage could occur next month. Ship & Bunker read in full  https://shipandbunker.com/news/world/282194-oil-up-on-opec-hopes-as-virus-declines-and-demand-builds-dominate-the-business-landscape

High MGO bunker prices at Colombo pushes demand to Indian ports. “We are still receiving steady interest for MGO because of the lower prices in Mumbai,” said a bunker supplier in Mumbai. In Full https://www.bunkerworld.com/news/157194

Singapore gasoil/LSFO spread slides from 6-month high on returning marine fuel demand. The Singapore low sulfur swaps market has been gaining strength recently after a pretty quiet May when demand was muted, a trader said. https://www.bunkerworld.com/news/157193

Oil edges higher, but remains under pressure from OPEC+ uncertainty. Stepped-up stimulus efforts further supported demand outlooks, placing a floor under oil prices. In Full https://www.bunkerworld.com/news/157204

HES Wilhelmshaven Tank Terminal starts up LSFO unit. HES Wilhelmshaven Tank Terminal (HWTT), Germany’s largest independent liquid bulk terminal, has started up its low sulphur fuel oil (LSFO) production unit, with a capacity of 2.5m t/y. https://www.tankstoragemag.com/2020/06/04/hes-wilhelmshaven-tank-terminal-starts-up-lsfo-unit/

Thailand bunker supply tightens on run cuts, rise in domestic demand: sources. Bunker fuel supply in Thailand has tightened since refiners are cutting run rates, while domestic bunker demand is rising amid easing lockdowns, market sources said on June 3. In Full https://www.bunkerworld.com/news/157191

Bunkering body eyes spread of bunker licensing systems at hubs. Advocates of the system say it provides a more consistent standard of service. S & P Platts Blog post here https://www.bunkerworld.com/news/insight/157177/Tom-Washington/Bunkering-body-eyes-spread-of-bunker-licensing-systems-at-hubs

Crude prices creep higher on OPEC+ extension optimism. Russia has indicated it supports at least extending the reductions by one month through July. In Full https://www.bunkerworld.com/news/157180

Jiujiang Petrochemical joins Sinopec’s foray into producing 0.5% sulfur fuels in China. Domestic refiners continue to ramp up supply, lower China’s dependency on imported bunkers. https://www.bunkerworld.com/news/157168

Singapore’s LSFO-HSFO spread narrows to 1-month low amid tepid demand. More competitive bunker prices at other Asian ports remains key factor. More here https://www.bunkerworld.com/news/157170

Record Monthly Gains For Crude As Demand Continues To Grow Worldwide. But analysts warn that demand recovery will still be long and painful. Read in full  https://shipandbunker.com/news/world/520565-record-monthly-gains-for-crude-as-demand-continues-to-grow-worldwide

Indian Bunker Suppliers Lower Prices to Take On Sri Lanka. Over the past two weeks the discount for very low sulfur fuel oil at Mumbai to Colombo’s levels has widened by $21/mt, reaching $42/mt on Thursday, according to Ship & Bunker pricing. Ship & Bunker read in full https://shipandbunker.com/news/apac/873041-indian-bunker-suppliers-lower-prices-to-take-on-sri-lanka

Less Advance Warning Needed for Spot Bunker Sales as VLSFO Availability Improves. Integr8 is now allowing a lead time of around 8.5 days on average for VLSFO stems, down from 10 days at the start of the year but still much higher than the 5-6 days needed for high sulfur fuel oil (HSFO) in the past. Ship & Bunker read in full https://shipandbunker.com/news/world/541406-less-advance-warning-needed-for-spot-bunker-sales-as-vlsfo-availability-improves-integr8

Bunkerspot: EUROPE: HES Wilhelmshaven begins LSFO production
 
HES Wilhelmshaven Tank Terminal in Germany has begun the operation of its low sulphur fuel oil production unit, which has a nameplate capacity of around 2.5 million tons per year.
Fathom.world: NAMEPA launches maritime sustainability passport Award: Cargill gets first
On the occasion of World Oceans Day, NAMEPA (North American Marine Environment Protection Association) has launched the first known comprehensive CSR/ESG (Corporate Social Responsibility/Environment, Social, Governance) program designed expressly for the maritime industry, with its corresponding “Maritime Sustainability Passport” (MSP) awarded to companies, organizations and individuals who meet the requirements of the platform. The program encompasses the three pillars of CSR/ESG:  corporate governance, environment and the human element.  The launch was designed to coincide with World Oceans Day.
Fathom.world: “Realizing Zero-emission Waterborne Transport to the benefit of future generations”
A partnership comprising key players within the European waterborne transport sector, working together within the Waterborne Technology Platform 1 , propose a new Research and Innovation Partnership which over a period of seven years will implement R&I which will by 2030 demonstrate the feasibility of zero-emission waterborne transport applicable for all main services and ship types.
Fathom.world: Aker BP and Yxney Maritime to chase offshore emission cuts
Press Release: Maress will enable Aker BP to get a detailed insight into the fuel consumption and emissions from the fleet of advanced offshore vessels operating on the Norwegian Shelf. The Maress software provides a foundation for making informed and data-driven decisions on how to decarbonize operations.
VPO: LUKOIL’s ECA-compliant cylinder oil retains approval from major OEMs
LUKOIL’s NAVIGO MCL Ultra remains one of few low BN cylinder oils that still have a valid ‘No Objection Letter (NOL)’ with all major OEMs.
Recently a leading OEM withdrew their approvals for almost all low BN oils in the market, while NAVIGO MCL Ultra has retained its status, and continues to be fully approved by all other major OEMs.
Bunkerspot: GLOBAL: Total signs up to the Getting to Zero Coalition
‘As a major energy player, Total is already developing cleaner fuels for the maritime industry – we share the ambition to get to net-zero emissions by 2050, together with society, for our global operations,’ says Patrick Pouyanné, President and CEO of Total.
The Getting to Zero Coalition is aiming, through its members, at getting commercially viable deep-sea zero-emission vessels powered by zero-emission fuels into operation by 2030.
Total said that it would contribute to the Coalition’s focus areas, including fuels, marine lubricants, and ship zero-emission technologies.
Ship & Bunker: Container Line CMA GCM Continues to Waive Low Sulphur Surcharge
French container line CMA GCM will continue to waive its low Sulphur surcharge designed to pass on the higher fuel costs for very low Sulphur fuel oil (VLSFO) to its customers, the company said Wednesday.
News Round Up 04 May

News Round Up 04 May

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/adviceandinsight/Lines-under-pressure-to-cut-%E2%80%98obsolete%E2%80%99-low-sulphur-surcharges/76448.htm#.Xq_hVM3gpLN

Bunkerspot: AMERICAS: Panama Canal bunker volumes hold steady in March

New statistics published by the Panama Canal Authority (AMP) show a small monthly rise in total bunker sales, from 442,886 metric tonnes (mt) in February to 448,093 mt in March; there were increases in very low sulphur fuel oil and marine diesel oil volumes, but a dip in demand for high sulphur fuel oil.

https://www.bunkerspot.com/americas/50410-americas-panama-canal-bunker-volumes-hold-steady-in-march

VPO Global: LUKOIL shares lubricant experience 

LUKOIL Marine Lubricants has shared its experience of operating with NAVIGO MCL Extra (40BN) with very low sulphur fuel oil (VLSFO) for 100 days.

https://vpoglobal.com/2020/05/01/lukoil-shares-lubricant-experience-after-100-days-of-operation-on-vlsfo/

Bunkerspot: WFS sees 68% Q1 profit surge for bunker segment on lower volumes

World Fuel Services’ marine fuel business held up well in Q1 2020, showing a good degree of resilience amid the current market turmoil, but marine profits are expected to be ‘more meaningfully impacted’ in Q2 by the oil price slump and the coronavirus pandemic.

https://www.bunkerspot.com/news-archive?view=article&id=50422:global-wfs-sees-68-q1-profit-surge-for-bunker-segment-on-lower-volumes&catid=14

Bunkerspot: Rotterdam’s Q1 bunker volumes show solid upswing

In spite of falling global bunker demand in the first three months of the year due to the major slowdown in world trade flows as a result of coronavirus, Q1 2020 bunker volumes at the Port of Rotterdam showed a quarter-on-quarter gain to reach 2.37 million cubic metres (cbm) – the highest quarterly total since Q1 2018.

https://www.bunkerspot.com/news-archive?view=article&id=50415:europe-rotterdam-s-q1-bunker-volumes-show-solid-upswing&catid=11

Bunkerspot: Panama bunker volumes hold steady in March

New statistics published by the Panama Maritime Authority (AMP) show a small monthly rise in total bunker sales, from 442,886 metric tonnes (mt) in February to 448,093 mt in March; there were increases in very low sulphur fuel oil (VLSFO) and marine diesel oil (MDO) volumes, but a dip in demand for high sulphur fuel oil (HSFO).

https://www.bunkerspot.com/news-archive?view=article&id=50410:americas-panama-canal-bunker-volumes-hold-steady-in-march&catid=9

Bunkerspot: Lindsay-Blee and Master Fuel sign Colombia marketing and distribution deal

Lindsay‐Blee will exclusively market, sell and distribute marine fuel products in Colombia in partnership with Master Fuel SAS, including very low sulphur fuel oil (VLSFO), high sulphur fuel oil (HSFO) 380 cSt, and 0.10% sulphur marine gasoil (MGO).

https://www.bunkerspot.com/news-archive?view=article&id=50405:americas-lindsay-blee-and-master-fuel-sign-colombia-marketing-and-distribution-deal&catid=9

Bunkerspot: VPS highlights marine fuel storage monitoring service

The COVID-19 pandemic has reduced marine fuel demand which can result in extended bunker storage periods and heighten the risk of fuel quality deterioration.

Fuel testing agency VPS has pointed out that although longer-term storage of marine fuels is possible, it can increase the risk of fuel quality issues arising from temperature, stratification, fuel stability, catfine settling, waxing and microbial growth.

‘Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO), Ultra Low Sulphur Fuel Oil (ULSFO) and Marine Gas Oil (MGO), all have different properties and formulations, which can be negatively affected due to longer-term storage,’ says VPS.

https://www.bunkerspot.com/news-archive?view=article&id=50398:global-vps-highlights-marine-fuel-storage-monitoring-service&catid=14

Splash 247: Aussies detain bulk carrier found to be carrying high sulphur fuel

The African Heron, a four-year-old 34,387 dwt bulk carrier belonging to the Amsterdam-based MUR Shipping, was detained in Geelong, Australia on Friday, found to be carrying fuel with Sulphur content above 0.5%.

https://splash247.com/aussies-detain-bulk-carrier-found-to-be-carrying-high-sulphur-fuel/

Ship and Bunker: IBIA, UK Chamber of Shipping Plan Autumn Bunker Event

Bunker Industry association International Bunker Industry Association (IBIA) and the UK Chamber of Shipping have teamed up to host a bunker conference in London in September.

The event, on September 29, will provide “a forum for advanced dialogue and exchange of experiences related to marine fuels, the implementation of the 2020 Sulphur Cap, safety implications, the market landscape and new advanced fuel products”, according to the organisers.

An agenda will released nearer the time and sponsorship deals are available.

https://shipandbunker.com/news/world/431581-ibia-uk-chamber-of-shipping-plan-autumn-bunker-event

Ship and Bunker: Chinese Ports Record Rising Bunker Spot Sales

Bunker sales at the Chinese port of Zhoushan rose by 25% to reach 348,500 metric tonnes (mt) in March from the previous month.

Spot Sales of low-sulphur bunker volumes in the port as reported to price reporting agency Argus Media were at a record high of nearly 49,000 mt in March, according to the agency.

https://shipandbunker.com/news/apac/663372-chinese-ports-record-rising-bunker-spot-sales