Bunkerspot: AMERICAS: Panama’s May bunker volumes slip back 5% year-on-year
New Panama Maritime Authority statistics show that May bunker volumes totalled 393,316 metric tonnes, and the month was notable for a surge in low sulphur marine gasoil sales, which almost touched the combined total for the first four months of the year.
Bunkerspot: AMERICAS: New joint venture will look to process heavy crude oil using Quadrise MSAR technology
Oil exploration, development and technology group TomCo Energy and Valkor have formed a joint venture, Greenfield, which will look at the development of an oil sands plant at Asphalt Ridge in Utah; Valkor has also granted Greenfield a licence to Quadrise MSAR emulsion fuel technology for the processing of heavy sweet crude oil into IMO 2020-compliant heavy fuel oil.
Bunkerspot: GLOBAL: VLSFO: ‘load it and use it,’ says LR’s Douglas Raitt
Emerging problems over the stability of very low sulphur fuel oils (VLSFOs) when stored for longer time frames were addressed in an online webinar today hosted by Integr8 Fuels, with Douglas Raitt, Global FOBAS Manager, suggesting that the fuel may not be ‘a formulation to be kept for a period of time’.
The webinar, which looked at bunker fuel in the current shipping market, featured a wide-ranging discussion between Raitt and Chris Turner, Manager – Bunker Quality and Claims with Integr8 Fuels, and the quality of the new VLSFOs was, not surprisingly, a key talking point.
Bunkerspot: GLOBAL: Presence of shale oil in VLSFO blends is on the up
Since 1 January 2020, the use of shale oil in blended very low sulphur fuel oils has been on the rise, with significant levels of Estonian shale oil – which can cause issues such as onboard filter clogging – having recently been seen in bunkers supplied at ARA ports, according to Douglas Raitt, Global FOBAS Manager, Lloyd’s Register.
Bunkerspot: ASIA PACIFIC: Australia increasing fines for pollution related incidents
The majority of Australian States are increasing their fines for pollution related incidents with effect from 1 July.
Ship and Bunker: Bunker Futures Contract starts at Shanghai Exchange
The marine fuel futures contract that launches today on the Shanghai International Energy Exchange is likely to attract strong interest, despite weakened ship fuel demand amid the coronavirus pandemic.
Shipping Gazette: Pandemic forces shipowners to shelve scrubber installation
SHIPOWNERS are postponing or cancelling the installation of scrubbers that extract sulphur emissions from their vessels as the coronavirus pandemic tightens finances, reports Reuters.
Regulations from UN’s agency the International Maritime Organisation (IMO), which took effect in January, were viewed by the oil and shipping industries as one of the first worldwide efforts to enforce environmental change.
The rules aimed to make ships use fuel with a sulphur content of 0.5 per cent, compared with 3.5 per cent previously. Operators had the alternative option to install devices – scrubbers – to strip out the pollutant.
In the run-up to IMO 2020, dozens of traders and shipowners, bet on installing scrubbers hoping to make a profit from buying cheaper high-sulphur fuel as the newly developed 0.5 per cent alternative would be in tight supply.
But with an average cost of US$2 million to install just one, the stakes were already high for fleet operators often facing investments of more than $100 million.
Now the industry financial squeeze, caused by a decline in demand for shipping due to the Covid-19 crisis, may mean scrubbers become less of an option for ship owners to comply with regulations.
Leading Norwegian firm Wallenius Wilhemsen, which transports cars and other vehicles, told Reuters it had cancelled scrubbers for nine ships in the past few months and postponed an additional eight until later this year or 2021.”As a result primarily of the Covid-19 pandemic, customers have significantly reduced their output of vehicles,” a spokeswoman said. “With that comes a reduction in revenues and we are taking all necessary steps to reduce cash outflows.”
Clarksons Research said it recorded a significant slowing in the number of ships already in service installing scrubbers, estimating there were under 100 vessels undergoing retrofits versus over 300 at the start of the year.
Clarksons said the number of ships pending retrofits was 750 – some of which may be postponed or cancelled – versus a peak of over 2,000 pending in the middle of 2019. They estimated there were now 3,015 ships fitted with scrubbers, from 506 at the start of 2019.
Shipping Gazette: Cargo, low fuel bright spots in worst year for aviation: IATA
THE year 2020 will go down as the worst financial year in the history of aviation because of the Covid-19 crisis, a fact that justifies an industry-wide government bailout, according to the International Air Transport Association.
IATA’s director general and CEO Alexandre de Juniac, former CEO of Air France, saw only one ray of hope. “Strong cargo operations and comparatively low fuel prices will also give the industry a boost,” he said.
“But every day of this year will add US$230 million to industry losses. In total, that’s a loss of $84.3 billion. That’s why government financial relief is crucial,” he said.
“Provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organisation (ICAO) to keep passengers and crew safe,” he said.
“Airlines will still be financially fragile in 2021. Passenger revenues will be more than one-third smaller than in 2019. And airlines are expected to lose about $5 for every passenger carried. The cut in losses will come from re-opened borders leading to increased volumes of travellers.
“That will translate into strong incentives for travellers to take to the skies again. The challenge for 2022 will be turning reduced losses of 2021 into the profits that airlines will need to pay off their debts from this terrible crisis,” he said.
Reuters: China to be self-reliant in IMO-compliant fuel – official
Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO) this year, which would make the country self-sufficient in the new shipping fuel, an official with state major PetroChina said on Monday.
Ship & Bunker: Petrobras low Sulfur Focus Fuels Exports’ Rise
Big monthly increase over a year ago.
Ship & Bunker: Singapore Bunker Margins Almost Double in a Week
The premium for delivered very low sulfur fuel oil in Singa
pore over local cargo prices jumped to $25.72/mt on Friday, from $13.98/mt a week earlier.
Ship & Bunker: Singapore Sees Marginal Decline in Bunker Demand in May
Total demand at the world’s largest bunkering hub fell to 3.925 million mt in May, down by 2% from a year earlier and by 4.6% from the previous month.
Bunkerworld: EIA says total US ULSD stocks draw for first time since March
Ultra low sulfur diesel stocks in the US drew for the first time since the week that ended March 27, falling 1.22 million barrels to 160.78 million barrels during the week that ended June 12, US Energy Information Administration data released June 17 showed.
Bunkerworld :TENDER DATA: India’s HPCL sells HSFO loading July 6-8 from Mumbai
HPCL is an occasional seller of high sulfur fuel on a spot tender basis, according to market sources.
Bunkerworld: S Korea marine fuel 0.5%S differential plunges to 10-month low on weak demand
Poor demand for delivered marine fuel 0.5%S in South Korea has pushed its differential against the FOB Singapore 10 ppm gasoil assessments to a 10-month low of minus $45.35/mt on June 17, S&P Global Platts data showed.
Bunkerworld: Bunker fuel trader Glander sees FY2019-20 revenues soar amid IMO 2020 transition
Glander International Bunkering reported a 19.4% rise in total revenue in its 2019-20 fiscal year amid an eventful year for the bunker industry, the marine fuel trader said in a statement June 18.
Bunkerworld: OIL FUTURES: Crude rises as OPEC+ compliance hopes overshadow virus risks
Crude futures settled higher June 19 as the market shrugged off concerns of a coronavirus pandemic resurgence amid tighter supply outlooks.
Bunkerworld: Bunker Fuels Need to be Treated Cautiously as Dangers for Engines Can Lurk in Low Sulphur Products
As the saying goes ‘There’s no such thing as a free lunch’, and that seems to be the case with the International Maritime Organization’s mandatory legislation on the sulphur content allowable in marine fuels, at least according to specialist fuel treatment firm Aderco.
Aderco has recently released a new fuel guide intended to improve fuel performance and prevent damage to maritime diesel engines. The report follows a series of tests conducted in Belgium and Singapore on low sulphur fuels over recent months. The authors claim that the tests show that incorporating a fuel additive can help mitigate problems such as commingling whilst improving fuel stability, reducing sludge and removing water from the new fuels.
Khaleej Times: Pandemic forces ship owners to shelve anti-pollution gear
Ship owners are postponing or cancelling the installation of “scrubbers” that extract harmful sulphur emissions from their vessels as the coronavirus pandemic tightens finances.
Regulations from United Nations agency the International Maritime Organization (IMO), which took effect in January, were viewed by the oil and shipping industries as one of the first worldwide efforts to enforce environmental change.
Khaleej Times: Three Steps for a Smooth Transition to IMO 2020: Preparation, Flexibility and Timing
During late 2019, the maritime industry was gearing up to IMO 2020. The logistical complexity and financial repercussions were going to be huge. While living and working through this step change, Hafnia Bunkers found that preparation, flexibility and timing were all essential for a smooth, efficient transition into this new reality.