News Round Up: 10 July 2020

News Round Up: 10 July 2020

UN secretary-general calls for shipping bailouts to be tied to the Paris Agreement- Splash247

“Bailout support to sectors such as industry, aviation and shipping should be conditioned on alignment with the goals of the Paris Agreement,” said Guterres.

Damen delivers five zero emissions propulsion ferries for the Danish market- Riviera

Damen Shipyards Group has delivered five 2306 E3 ferries to Arriva Denmark in Copenhagen. Arriva will operate the vessels on behalf of Danish public transport agency Movia.

BP-Sinopec bunker venture to start fuel oil deliveries to Fujairah: source- Hellenic Shipping News

BP and Sinopec had said when the venture was announced in May 2015 that they plan to serve ports in Singapore, Fujairah, Antwerp, Rotterdam and Amsterdam, and China’s Tianjin, Qingdao, Shanghai, Ningbo and Shenzhen.

Petrobras replan refinery sets new VLSFO monthly production record- BunkerSpot

The Replan facility, which is located in the state of São Paulo, produced 148,000 cubic metres (cbm) of VLSFO in June, compared to 123,000 cbm in May.

News Update 6 July 2020

News Update 6 July 2020

NEWS UPDATE 6 JULY – 4 Great stories to read

FUJAIRAH DATA: Refined product stocks drop most since April to seven-week low – Bunkerworld

“Economies are picking up so the consumption is there,” said Malek Azizeh, commercial director of Fujairah Oil Terminal.

Idemitsu Plant Raises VSLFO Output – Ship and Bunker

Demand for high sulfur fuel oil from Japanese ship operators remains small post IMO2020

South Korea declares local SECAs – Ship Insight and Dry Bulk

The Republic of Korea (South Korea) is the latest country to announce the designation of national sulfur emission control areas, which will enter into force on 1 September 2020.

The national South Korean sulfur restrictions will apply to the following six ports, and a national sulphur emission control area has been defined for each port

RPT-Marine fuel market facing tougher Q3 as supply rises

* VLSFO market weighed down by rising supplies, weak demand

* Global fuel oil supply to increase 620,000 bpd in Q3 -analyst

* Bunker demand to remain depressed in Q3

Hong Kong Shipping Gazette  News Read the full article below:

Cosco about to complete planned scrubber installations

CHINA’s Cosco Shipping Lines (Cosco) is about to complete scrubber installations, a plan that was announced in 2019.

Three vessels owned by China Shipping Container Lines (CSCL) before Cosco acquired the group as part of the government’s move to consolidate state-owned companies, CSCL Mercury, CSCL Jupiter and CSCL Saturn, 14,000 TEU sister container ships, arrived in the Liuheng yard of Cosco Shipping Heavy Industry (Zhoushan), on June 14, 2020.

The ships are the last of 10 vessels that Cosco earmarked in 2019 for scrubber retrofits, which usually take 15 to 30 days, depending on the size of the vessel, reports Container News, Jacksonville.

The scrubbers are provided by Finnish firm Valmet, which has four production units and three service centres in China. Scrubber-fitted ships can continue burning, cheaper, high-sulphur fuel oil and comply with the International Maritime Organization’s emission regulations that became effective this year.

The scrubber system delivery for Cosco Shipping Lines will include a tailor-made open-loop scrubber system for main engine and generator engines including auxiliary systems and automation.

In its 2019 financial report, the shipping line said that as at the end of the year, scrubber installations were completed on seven of the ships. The retrofitting schedules were planned according to the route and refuelling ports of the ships, as Zhoushan is a major bunkering port in China.

News Round Up 25 May 2020

News Round Up 25 May 2020

Lloyd’s Loading List: Freight market turbulence set to continue all year, says DSV chief

Freight markets will see significant turbulence in the coming months with volatile rate readjustments likely in the air and ocean sectors as coronavirus lockdowns are eased and demand slowly recovers, according to Jens Bjørn Andersen, CEO of DSV Panalpina.

Bunkerspot: ASIA PACIFIC: Straits Inter Logistics records 159.3% surge in annual revenue

Announcing revenue of RM663.2 million for FY 2019, Malaysia’s Straits Inter Logistics attributed much of the rise to an increase in demand for high sulphur fuel oil and the start of VLSFO supply.

Bunkerspot: EUROPE: ‘Varied picture’ for Port of Antwerp’s 2020 freight volumes

The coronavirus impacted on freight throughput at the Port of Antwerp in April, but volumes were still up 0.4% overall during the first four months of 2020 compared with the same period last year.

Bunkerspot: ASIA PACIFIC: New bunker tanker now operating in Fremantle

BP Marine and ASP Ships Group have announced that the Absolute I, a 8,646 DWT tanker capable of carrying three grades of fuel, is now making bunker deliveries in Fremantle, Kwinana and at the local anchorages.

The Absolute I, which was launched in October 2019 and delivered into Fremantle in April, replaces the smaller vessel Vacamonte. The tanker made its first bunker delivery to the bulk carrier ASL Fortune at the Fremantle/Kwinana anchorage on 23 April.

Bunkerspot: GLOBAL: SEA\LNG issues response to Climate Bond Initiative’s Green Bond criteria

Highlighting marine LNG’s role as a ‘crucial tool’ in helping to achieve climate ambitions, the industry coalition says that the recently announced proposed criteria for Green Bond certification of low carbon shipping financing, ‘leans towards being technology prescriptive rather than goal oriented; a precarious strategic approach to a highly complex international challenge’.

Ship & bunker: Distillate Demand by 7% Over Year: IEA

The first quarter demand picture for refined oil products shows jet fuel losing the biggest chunk of compared to the same quarter last year.

Ship & bunker: Woodside Petroleum to Alter Vincent Crude to Target VLSFO Market

Australian energy company Woodside Petroleum plans to alter the quality of its Vincent crude oil to make it suitable as a blending component for very low sulfur fuel oil (VLSFO), according to news agency Reuters.

The company plans to shut off the Cimatti field in Western Australia to raise the average flash point of the Vincent blend, Reuters reported Thursday.

Ship & Bunker: Classification Societies Clash on 2050 Bunker Demand Outlook

Two leading classification societies, DNV and the American Bureau of Shipping (ABS), have come up with two starkly different visions for how bunker demand might develop in the coming decades – highlighting widespread uncertainty over how the alternative fuels landscape is set to develop.

Ship & bunker: Rosneft Starts VLSFO Production at Syzran Refinery

Russian energy producer Rosneft has started production of very low sulfur fuel oil (VLSFO) at its Syzran refinery in the south-west of the country, the company said Thursday.

The company started production of the fuel in early 2020, it said in a statement on its website.

IMO2020: Drewry Sees LSFO Premium at $87 in 2023, Falling From $300 in 2020

IMO2020: Drewry Sees LSFO Premium at $87 in 2023, Falling From $300 in 2020

The spread for IMO2020 compliant LSFO bunkers will be $300 in 2020, it’s peak before narrowing to just $87 in 2023, according to the latest thinking from Drewry Maritime Research.

Along the way, the LSFO premium will fall to $211 in 2021 and $124 in 2022, the consultancy predicts, chalking the narrowing spread down to increases in supply.

If proven true, it would have significant implications for those looking to invest in scrubbers as the payback time for the technology would become much longer only a few years after the new global 0.50% sulphur cap comes into force on January 1, 2020.

This is particularly relevant for those taking a “wait-and-see” approach to their Imo2020 strategy, with several scrubber manufacturers already taking options through 2023 “to enable shipowners to secure a position on the installation timetable”, as Pureteq CEO, Anders Skibdal, told Ship & Bunker last month.

For Drewry’s payback calculations, it assumed that for VLCCs the cost of fitting an open loop scrubber in a newbuild ship is $2.7 million and for a retrofit $4.3 million.

The narrowing HSFO/LSFO spread would mean bunker cost savings for a modern eco-VLCC of $5.7 million in 2020 , but only $1.6 million in 2023.

“This suggests that owners opting for scrubber-fitted vessels in 2020 would recover their cost in the first year alone. However, for those who choose to retrofit a scrubber (or take the delivery of a scrubber-fitted vessel) later, the payback period will be longer,” says Drewry.

Of course, this calculation presumes the vessel will always be able to lift and burn HSFO…

Read the full article here.

POSCO, KDB, shippers sign biz tie-up for bulk carriers

POSCO, KDB, shippers sign biz tie-up for bulk carriers

POSCO, the state-run Korea Development Bank (KDB) and shipping companies have signed a business tie-up to install desulfurizers in the bulk ships that transport coal and iron ore to the South Korean steelmaker, POSCO said Friday.

In its Seoul office, POSCO signed a tripartite agreement with KDB and several shipping firms that carry the key raw materials to the country’s leading steelmaker to establish the “Scrubber,” which reduces sulfur oxides emitted from fossil fuels, such as coal and iron ore, by 90 percent, the company said in a statement.

Under the deal, the state lender will extend a loan to POSCO’s shipping partners, such as Korea Line Corp., Pan Ocean, and H-Line Shipping, to help them install the desulfurizing system in their bulk ships by the end of 2019. Then, the shipping lines will receive the entire installation costs in their 20 ships from POSCO in the form of bulk-carrying expenses, it said.

The move is part of POSCO’s preemptive efforts to respond to the International Maritime Organization’s (IMO) stricter regulations on emitting gases from ships. The IMO plans to restrict the proportion of sulfur dioxides of a vessel’s overall gas emissions to 0.5 percent, sharply down from 3.5 percent, starting on Jan. 1, 2020, the statement said.


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