News Round Up 01 June 2020

News Round Up 01 June 2020

Bunkerspot: GLOBAL: The Bunkerspot Debate – 2020: expectations, realities – and black swans

The first online free-to-access Bunkerspot Debate is today available to view. In this discussion, four leading maritime lawyers – Beth Bradley of Hill Dickinson, Harald Søndergaard of Hafnia Law Firm, Andrew Preston of Preston Turnbull and Steve Simms of Simms Showers – give their expert insights on IMO 2020, bunker claims, sanctions, force majeure, and the impact of COVID-19 on the marine fuel and shipping industries.

The online Bunkerspot Legal Debate is the first in a series of focused debates which will look at key trends and developments in the marine fuel sector from an operational, commercial and technical point of view.

https://www.bunkerspot.com/global/50575-global-the-bunkerspot-debate-2020-expectations-realities-and-black-swans#

Bunkerspot: EUROPE: EC publishes first annual report on shipping’s CO2 emissions

During the first reporting year of 2018, 11,600 ships submitted fuel consumption data and were responsible for 138 million tonnes of CO2 emissions in the European Economic Area – with containerships proving to be the largest emitters, accounting for 18% of the monitored fleet and 30% of total CO2 emissions.

https://www.bunkerspot.com/europe/50573-europe-ec-publishes-first-annual-report-on-shipping-s-co2-emissions

Bunkerspot: EUROPE: Danish companies team up to develop sustainable fuels for road, maritime and air transport in Copenhagen area

A.P. Moller – Maersk, Copenhagen Airports, DSV Panalpina, DFDS, SAS and Ørsted have joined forces to develop an ‘industrial-scale’ facility to produce sustainable fuels for road, maritime and air transport in the Copenhagen area.

In a statement issued today (26 May), the companies said that the hydrogen and e-fuel production facility could be ready ‘as soon as 2023’ and when ‘fully scaled-up by 2030’, it could ‘deliver more than 250,000 tonnes of sustainable fuel for buses, trucks, maritime vessels, and airplanes every year’.

https://www.bunkerspot.com/europe/50570-europe-danish-companies-team-up-to-develop-sustainable-fuels-for-road-maritime-and-air-transport-in-copenhagen-area#

Bunkerspot: GLOBAL: Wärtsilä upgrades FuelFlex ICU to deal with low sulphur fuels

Wärtsilä has launched a FuelFlex Injection Control Unit (ICU) upgrading solution to meet the requirements of operating its RT-flex type two-stroke diesel engines with both residual and low-viscosity marine fuels.

In a statement issued yesterday (245 May), Wärtsilä said that the upgrade was ‘particularly relevant in view of the industry’s increasing use of low-sulphur-content fuels in order to be compliant with sulphur emission regulations’.

https://www.bunkerspot.com/global/50568-global-waertsilae-upgrades-fuelflex-icu-to-deal-with-low-sulphur-fuels

Bunkerspot: GLOBAL: ExxonMobil introduces next-generation multi-fuel marine cylinder oil, Mobilgard 540 X

Mobilgard 540 X, which has been formulated for use with 0.10% and 0.50% sulphur fuels – and LNG – will be available at global ports from June this year.

Announcing the launch of Mobilgard 540 X, ExxonMobil said its low base number (BN) formulation had passed stringent fit-for-use testing in newer engine designs. The product is also the first cylinder oil to be gas-validated by WinGD.

https://www.bunkerspot.com/europe/50570-europe-danish-companies-team-up-to-develop-sustainable-fuels-for-road-maritime-and-air-transport-in-copenhagen-area#

Bunkerspot: GLOBAL: Gazpromneft Q1 revenues down, but refining volumes up

Russia’s Gazpromnneft reported revenues of RUB515 billion for the first quarter (Q1) of 2020, down from RUB614 billion last year, but its refining volumes were up more than 3% to 10.3 million tonnes – and this included increased production of IMO 2020-compliant very low sulphur fuel oil (VLSFO).

https://www.bunkerspot.com/global/50601-global-gazpromneft-q1-revenues-down-but-refining-volumes-up

Bunkerspot: EUROPE: Portsmouth International Port to pilot smart energy system

Portsmouth International Port is part of a Port Energy Systems Optimisation (PESO) project, co-funded by Innovate UK, which is intended to reduce carbon emissions and facilitate the electrification of port operations.

https://www.bunkerspot.com/europe/50605-europe-portsmouth-international-port-to-pilot-smart-energy-system

Bunkerspot: ASIA PACIFIC: Shanghai exchange to test LSFO futures trading

The Shanghai International Energy Exchange is to undertake a ‘mock test’ of Low Sulphur Fuel Oil futures trading between 1-12 June.

https://www.bunkerspot.com/asia/50612-asia-pacific-shanghai-ine-to-test-lsfo-futures-trading

Bunkerspot: EUROPE: Norway proposes funding for ‘green recovery’ initiatives

The Norwegian government has outlined proposals for a NOK 3.6 billion strategy to cut industry GHG emissions, which could encompass battery technology, hydrogen and green shipping projects.

https://www.bunkerspot.com/europe/50614-europe-norway-proposes-funding-for-green-recovery-initiatives

VPO: British Ports Association calls for boost in shore power to decarbonise shipping

The British Ports Association has issued a new report, “Reducing Emissions from Shipping in Ports: Examining the Barriers to Shore Power,” calling for the UK government to boost its support for shore power connections as a viable tool for meeting its net zero carbon emissions targets.

The report suggests that this cannot be done without public investment. The Association urges a zero-emission berth standard that would help create more certainty around investments in emissions reductions technologies.

https://vpoglobal.com/2020/05/29/british-ports-association-calls-for-boost-in-shore-power-to-decarbonise-shipping/

VPO: Lubrizol joins the Getting to Zero Coalition

The Lubrizol Corporation has become the first lubricant additive technology supplier to join the Getting to Zero Coalition.

The Getting to Zero Coalition is an international group currently endorsed by 14 governments and composed of more than 100 organisations. It aims to drive the development of commercially viable, zero-emissions deep-sea ships by 2030. This partnership between the Global Maritime Forum, the World Economic Forum and Friends of Ocean Action boasts leading shipowners, ports, technology providers and fuel companies as well as academic and research institutions.

https://vpoglobal.com/2020/05/28/lubrizol-joins-the-getting-to-zero-coalition/

VPO: Finnlines continues EUR 500M green vessel programme

Finnish ship operator Finnlines is investing EUR 500 million to deploy ultra-green vessels as part of the company’s strategy to reduce fuel consumption and harmful emissions.

The new ro-ro vessels will be built with the latest technology available to ensure the lowest CO2 emissions. They will be equipped with lithium-ion battery systems that enable zero-emission operations in port. The first ro-ro vessel is expected to start operation as early as next year, and the other two in 2022.

https://vpoglobal.com/2020/05/29/finnlines-continues-eur-500m-green-vessel-programme/

Ship & Bunker: Star Bulk Sees Gains From Scrubber Spread Hedging             

Dry Bulk Firm Star Bulk, one of the shipping companies most committed to scrubbers in the run-up to IMO 2020, has set out the details of a hedging programme that has gone some way to protect the company from the declining profitability of the system this year.

https://shipandbunker.com/news/world/298024-star-bulk-sees-gains-from-scrubber-spread-hedging

Ship & Bunker: Argentinian Bunker Sales Gained 70% in First Quarter

Bunker sales at Argentina’s ports jumped by 70% in the first quarter from the same period a year earlier, according to the Argentinian Petroleum and Gas Institute.

https://shipandbunker.com/news/am/984081-argentinian-bunker-sales-gained-70-in-first-quarter

Ship & Bunker: SDE International Sees Singapore’s 2020 Bunker Demand Holding Steady

Singapore may be able to hold onto its 2019 bunker sales volumes this year despite the effect of the COVID-19 pandemic, according to consultancy SDE International.

https://shipandbunker.com/news/apac/939913-sde-international-sees-singapores-2020-bunker-demand-holding-steady

Ship & Bunker: VPS Reports Sharp Decline in Non-Compliant VLSFO Samples

Disputes over the sulfur content of new IMO 2020-compliant fuel blends are likely to be declining, with fewer fuels now tested as being over the new 0.50% sulfur limit, according to testing company VPS.

https://shipandbunker.com/news/world/242513-vps-reports-sharp-decline-in-non-compliant-vlsfo-samples

 

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.

https://www.lloydsloadinglist.com/freight-directory/news/Freight-market-turbulence-set-to-continue-all-year-says-DSV-chief/76612.htm

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.

https://www.bunkerspot.com/asia/50556-asia-pacific-straits-inter-logistics-records-159-3-surge-in-annual-profits

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.

https://www.bunkerspot.com/news-archive?view=article&id=50561:europe-varied-picture-for-port-of-antwerp-s-2020-freight-volumes&catid=11

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.

https://www.bunkerspot.com/news-archive?view=article&id=50530:asia-pacific-new-bunker-tanker-now-operating-in-fremantle&catid=10

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’.

https://www.bunkerspot.com/news-archive?view=article&id=50542:global-sea-lng-issues-response-to-climate-bond-initiative-s-green-bond-criteria&catid=14

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.

https://shipandbunker.com/news/world/102661-distillate-demand-down-by-7-over-year-iea

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.

https://shipandbunker.com/news/apac/737931-woodside-petroleum-to-alter-vincent-crude-to-target-vlsfo-market

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.

https://shipandbunker.com/news/world/616381-classification-societies-clash-on-2050-bunker-demand-outlook

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.

https://shipandbunker.com/news/world/703366-rosneft-starts-vlsfo-production-at-syzran-refinery

News Update – 18 May 2020

News Update – 18 May 2020

Ship and Bunker: INTERVIEW: The Falling Cost of Biofuel – Now a “Commercially and Technically Viable” Alternative to Fossil Bunkers

The price of GHG-footprint reducing biofuels has declined to the extent where they should now be considered both a commercially and technically viable alternative to conventional bunkers, even as the price of oil slumps to multi-year-lows, according to supplier GoodFuels.

https://shipandbunker.com/news/world/939386-interview-the-falling-cost-of-biofuel-now-a-commercially-and-technically-viable-alternative-to-fossil-bunkers

Chinadialogue Ocean: China enters a new low-sulphur shipping era

Establishing emission control areas has prepared China for global sulphur restrictions, but challenges remain

https://chinadialogueocean.net/13818-china-enters-a-new-low-sulphur-shipping-era/

Bunkerspot: Spain marks significant upswing in LNG bunkering operations

A total of 185 LNG bunkering operations have been carried out in Spanish ports up to the end of April this year, with volumes doubling to 47,615 cubic metres (cbm) compared to the same period last year.

The growth in the development of the Spanish LNG bunkering market has been strong in the past few year. According to statistics provided by the European Commission’s CORE LNGas hive initiative, in 2019, a total of 195 LNG bunkering operations were carried out, over a three-fold increase from the 60 gas fuel deliveries undertaken in 2018.

https://www.bunkerspot.com/europe/50502-europe-spain-marks-significant-upswing-in-lng-bunkering-operations

Bunkerspot: DNV GL: Hydrogen taking ‘a primary position’ in decarbonisation efforts

A new report from DNV GL has indicated that hydrogen has ‘surged up the priority list’ of many energy organisations, taking a ‘primary position’ in the sector’s decarbonisation efforts.

More than half (52%) of senior oil and gas professionals expect hydrogen to be ‘a significant part of the energy mix by 2030’, said DNV GL, and a fifth (21%) of industry leaders say their companies have already entered the hydrogen market.

https://www.bunkerspot.com/global/50503-global-dnv-gl-hydrogen-taking-a-primary-position-in-decarbonisation-efforts

Bunkerspot: GLOBAL Seaspan using Alfa Laval solution to resolve LSFO issues

Seaspan Ship Management has chosen Alfa Laval to help resolve steam balance and redundancy issues associated with the use of sulphur-compliant marine fuels.

https://www.bunkerspot.com/global/50501-global-seaspan-using-alfa-laval-solution-to-resolve-lsfo-issues

Bunkerspot: IEA: oil supply set for ‘spectacular’ fall in May to hit nine-year low

The International Energy Agency’s monthly Oil Market Report, published today (14 May), says the peak decline for global refining activity has shifted to May, with refinery storage bottlenecks starting to multiply at the beginning of the month as refineries in Europe, Asia and Africa halted production due to falling energy demand.

https://www.bunkerspot.com/global/50500-global-iea-oil-supply-set-for-spectacular-fall-in-may-to-hit-nine-year-low

Bunkerspot: DNV GL launches pilot phase of FuelBoss LNG bunkering platform

‘Feedback from suppliers has been very positive and we expect to have at least 10 suppliers on FuelBoss before the pilot phase ends, covering both Europe, Asia and North America’ DNV GL’s Martin Wold tells Bunkerspot.

https://www.bunkerspot.com/global/50513-global-dnv-gl-launches-pilot-phase-of-fuelboss-lng-bunkering-platform

Bunkerspot: GLOBAL: VPS publishes white paper on engine protection for VLSFO’s

During an investigation into the impact of the new very low sulphur fuel oils (VLSFO) on cylinder oils, VPS identified over 40 vessels suffering major engine damage since starting to bunker VLSFO.

https://www.bunkerspot.com/global/50506-global-vps-publishes-white-paper-on-engine-protection-for-vlsfos

Bunkerspot: ASIA PACIFIC: Port of Qingdao marks first VLCC bunker delivery; outlines VLSFO supply ambitions

A Sinopec barge, An Shen 5, bunkered the New Vista very large crude carrier (VLCC) with 1,600 metric tonnes of very low sulphur fuel oil on 11 May.

https://www.bunkerspot.com/asia/50510-asia-pacific-port-of-qingdao-marks-first-vlcc-bunker-delivery-outlines-vlsfo-supply-ambitions

Fathom.world: Wärtsilä Fuel Efficiency Boost will reduce fuel consumption and greenhouse gas emissions for KOTC VLCC’s

Press Release: The technology group Wärtsilä has been contracted to upgrade the performance of four vessels owned by Kuwait Oil Tanker Company (KOTC), a subsidiary of Kuwait Petroleum Company (KPC), by retrofitting the Wärtsilä Fuel Efficiency Boost solution to the ships’ main engines. The modification will reduce fuel consumption, and correspondingly lessen the environmental impact by lowering greenhouse gas emission levels. The order with Wärtsilä was placed in the first quarter of 2020. KOTC and other major ship owners who have taken a proactive approach towards environmental protection have been actively looking for ways to reduce their fuel consumption and carbon footprint, thus paving the way for them to reduce greenhouse gas emissions. As a result, the Wärtsilä Fuel Efficiency Boost initiative has attracted considerable interest, and similar orders from other large shipping companies have been placed in recent months.

https://fathom.world/wartsila-fuel-efficiency-boost-will-reduce-fuel-consumption-and-greenhouse-gas-emissions-for-kotc-vlccs/

Fathom.world: New report shows large potential for energy optimization with a payback of less than 3 years

Press Release: In a project, under Green Ship of the Future, 20 partner organizations have identified potential double-digited savings through retrofittable solutions with an ROI of less than 3 years.

In the Retrofit Series project, which began in 2019, Green Ship of the Future and 20 partners examine the potential for energy optimizing existing vessels, and thereby reducing their fuel consumption and CO2 emissions. The report shows potential achievable savings of up to 27% through technology that are available today and can be retrofitted with an ROI of less than 3 years. In addition, the report points to some general areas, which based on the case studies of three different vessels, show potential for large energy savings.

https://fathom.world/new-report-shows-large-potential-for-energy-optimization-with-a-payback-of-less-than-3-years/

Fathom.world: Integrated Alfa Laval Aalborg steam solution supports sulphur-compliant fuel use by Seaspan Ship Management

Press Release: Seaspan Ship Management has selected Alfa Laval to help resolve steam balance and redundancy issues connected to sulphur-compliant fuels. The comprehensive solution – an integrated steam boiler plant comprising oil-fired steam production, waste heat recovery, advanced control and connectivity – will soon be implemented on eight Seaspan owned large container ships.

https://fathom.world/integrated-alfa-laval-aalborg-steam-solution-supports-sulphur-compliant-fuel-use-by-seaspan-ship-management/

Fathom.world: Hartmann orders ME-LGIP engines for LPG tankers

MAN Energy Solutions has won the contract to supply individual MAN B&W ME-LGIP (Liquid Gas Injection Propane) dual-fuel engines to 3 × 5,000-m3 LPG tankers currently under construction by CIMC-SOE (CIMC Sinopacific Offshore & Engineering Co., Ltd.) in Shanghai for Hartmann Gas Carrier, the German shipping company.

https://fathom.world/hartmann-orders-me-lgip-engines-for-lpg-tankers/

VPO: Double digit fuel savings possible using existing technology, finds study

Green Ship of the Future (GSF) and its 20 partner organisations have identified that fuel savings of up to 27 per cent could be achieved by using existing technologies that have an ROI of less than 3 years.

In the retrofit series project, which began in 2019, Green Ship of the Future and its 20 partners examined the potential for optimising the energy consumption of existing vessels, and the impact on their fuel use and CO2 emissions. The results indicated that a 27 per cent cut in energy consumption was possible, using only technologies that are available today and can be retrofitted with an ROI of less than 3 years. The report also points to some general areas, which based on the case studies of three different vessels, show potential for large energy savings.

https://vpoglobal.com/2020/05/15/double-digit-fuel-savings-possible-using-existing-technology-finds-study/

VPO: Japan launches first LNG bunkering vessel

Japan’s first LNG bunker vessel (LBV) has been successfully launched at the Sakaide Works of Kawasaki Heavy Industries. The LBV is scheduled to be delivered at the end of September 2020 and will be the first LBV to be operated in Japan. 

https://vpoglobal.com/2020/05/15/japan-launches-first-lng-bunkering-vessel/

VPO: Coronavirus, coatings and carbon

Way back in January this year, a time that seems like it was generations ago, shipping was facing up to a global, existential challenge – reducing its carbon emissions and the global climate emergency. The fateful day of January 1, 2020 had come and gone with less disruption than many had anticipated, with generally widespread availability of low sulphur fuel to meet the IMO’s global sulphur cap requirements, and fewer violations than expected. For a few months, shipping’s attention had firmly switched from the issue of tackling sulphur to carbon, writes Catherine Austin, marketing & communications director, I-Tech AB and managing director of Blue-Green Marketing Consultants. 

https://vpoglobal.com/2020/05/15/coronavirus-coatings-and-carbon/

Ship and Bunker: Few ports wih VLSFO Availability Problems: Minerva Bunkering CEO

Minerva Bunkering now sees ‘very few# ports where the availability of low Sulphur fuel oil is a problem, according to its CEO.

https://shipandbunker.com/news/world/184956-few-ports-with-vlsfo-availability-problems-minerva-bunkering-ceo

News Round Up – updated 30 March

News Round Up – updated 30 March

11 varied articles below featuring Sulphur 2020 – from availability to impact of Covid-19

Ship and Bunker – IMO Reports Show Sharp Drop in VLSFO Shortages

Non-availability of VLSFO is coming down – just six FONARs were filed to the IMO in February down from 42 in January.

https://shipandbunker.com/news/world/510733-feature-imo-reports-show-sharp-drop-in-vlsfo-shortages

 

Tradewinds – Scrubber payback pushed out to four years as spread narrows again

Clarksons Platou Securities says difference between high and low sulphur fuel now only $75.

The spread between bunker fuel with 3.5-percent and 0.5-percent sulfur is now down to USD 75. This increases the payback time on a scrubber to three to four years, writes Clarksons. https://www.tradewindsnews.com/tankers/scrubber-payback-pushed-out-to-four-years-as-spread-narrows-again/2-1-779285

 

Shipping Watch – Oil collapse and pandemic could prove dangerous cocktail to container lines

The low oil price could cause shipping companies to postpone scrubber installations, thereby increasing the capacity of the global fleet at a time when the global pandemic is expected to lower demand significantly, assesses Sea-Intelligence.

https://shippingwatch.com/carriers/Container/article12029502.ece

 

Container Management – MSC blames virus-related scrubber delays for IMO 2020 violation

Following the one-year ban of the MSC Joanna from UAE waters for breaching the International Maritime Organization’s (IMO) rules on high sulphur fuel oil (HSFO), MSC has explained that shipyard backlogs resulting from the coronavirus outbreak have delayed scrubber installations.

The UAE’s Federal Transport Authority stated that the ship, which has a capacity of  9,784 teu, was carrying 700 tonnes of HSFO when it called at Jebel Ali port earlier in March.

However it stated: “Many of the shipyards where EGCS installation has been taking place are in areas affected by the current COVID-19 pandemic and this has generated a large backlog of installations for shipowners.

“In particular, Chinese shipyards were closed or partially closed for a significant period of time following the extended Lunar New Year holiday as the country grappled with the new coronavirus outbreak. This has impacted shipowners’ schedules for retrofitting ships, as has been widely documented in the media.”

The shipping line acknowledged that the MSC JOANNA is one of those ships which has been subject to an EGCS delay and its installation is currently scheduled for June 2020.

https://container-mag.com/2020/03/20/msc-blames-virus-related-scrubber-delays-for-imo-2020-violation/

Ship and Bunker – Taiwan to Introduce Universal 0.50% Sulfur Bunker Limit From July

Taiwan will source its very low sulfur fuel oil from producers CNPC and Formosa Plastics.

https://shipandbunker.com/news/apac/151925-taiwan-to-introduce-universal-050-sulfur-bunker-limit-from-july

Ship and Bunker – Bangladesh to import cleaner 0.005% sulfur gasoil from July 2020

Bangladesh will start importing 0.005% sulfur gasoil, instead of the existing 0.05% sulfur gasoil, from July 2020 in a bid to ensure a cleaner environment, Bangladesh Petroleum Corporation, or BPC, chairman Md Shamsur Rahman told S&P Global Platts on Monday (23rd).

https://shipandbunker.com/news/apac/151925-taiwan-to-introduce-universal-050-sulfur-bunker-limit-from-july

 2 Articles in full below:
Hong Kong Shipping Daily – full article Suspension of cruise sector’s massive fuel use boosts scrubbers

THE suspension of cruise ship deployments means a sudden fall in demand for heavy fuel oil, depressing its price, and giving a boost to scrubbers, reports New York’s FreightWaves.

Cruise ships, unlike cargo ships, are voracious consumers of fuel, not only to get from A to B, but to power their massive hotel superstructures.

For example, a 10,000-TEUer sailing at 16 knots consumes 100 tons of fuel a day. Assuming 250 days at sea per year, its annual consumption would be 25,000 tons. The cruise industry’s consumption is the equivalent of three hundred 10,000-TEU ships.

Similarly, a 180,000-ton capesize bulker that burns 47 tons of fuel a day and is at sea for 300 days a year would consume 14,100 tons annually. The cruise industry consumes the equivalent of 530 capesizes.

The sudden end of cruise itineraries due to coronavirus has reduced global demand for both 3.5 per cent sulphur heavy fuel oil (HFO) and 0.1 per cent sulphur marine gasoil (MGO).

This, in turn, could affect the bottom lines of commercial ships, particularly those with exhaust-gas scrubbers.

Carnival Corporation owns 105 vessels under Carnival Cruise Lines, Princess Cruises, Holland America Lines, P&O Cruises, Cunard Line, Costa Cruises, AIDA Cruises and Seabourn Cruises.

Its ships consume 3.312 million tons of marine fuel a year at a total cost of US$1.562 billion, and the company expected to consume 3.405 million tons of fuel a year.

The IMO 2020 rule requires all ships without exhaust-gas scrubbers to consume either MGO or 0.5 per cent fuel known as very low sulphur fuel oil (VLSFO); those with scrubbers can still burn HFO.

Putting their individual estimates together, the US-listed cruise owners had been on track to consume a combined 5.8 million tons of fuel this year. On a pro rata basis, this implies that the entire global fleet would have consumed around 7.5 million tons.

The halt to cruise deployments will translate into an abrupt reduction in demand for heavy fuel oil, but not for very low sulphur fuel oil (VLSFO) because cruising favours marine gas oil (MGO) over VLSFO, giving a tailwind for the VLSFO-HFO spread, a plus for cargo ships with scrubbers.

Goldman Sachs: American GDP will shrink 24pc in second quarter

ECONOMISTS at Goldman Sachs are now forecasting a staggering 24 per cent decline in US GDP in the second quarter, reports Copenhagen’s Sea-Intelligence.

US business inventories are expected to be 10 per cent larger than just before the financial crisis when compared to the magnitude of sales, said the report.

During the financial crisis, inventories were reduced 18 per cent. Restrictions are now being implemented in ports, with a few even banning vessels if they have been in virus affected countries or shutting down when they find workers testing positive, it said.

An oil price war drastically lowers carriers?costs as well as generates a positive cash flow effect. However, it also seriously undermines the investment case for scrubbers – we have seen the low-sulphur premium drop from a peak around US$300 per ton at the start of the year down to $60 per ton.

At the same time, scrubber installations are seriously delayed in China due to the virus. The consequence might well be that vessels which were otherwise planned to go for scrubber installation instead re-enter the operational fleet. This would add more capacity to a situation where

https://www.shippingazette.com/menu.asp?encode=eng

Bunker World – Taiwan sets 0.5% sulfur cap on marine fuels for domestic ships from July

The Environmental Protection Administration of Taiwan will tighten its sulfur cap from 3.5% to 0.5% effective July 1, 2020 for all marine fuels on vessels in Taiwanese waters, bringing it fully in line with international standards, an EPA official said Tuesday. https://www.bunkerworld.com/news/156655

Ship and Bunker – Containerships Completed Scrubber Retrofits by Mid-February

The remaining 58 vessels in its fleet have switched to low-sulfur fuels to comply with IMO 2020. https://www.bunkerworld.com/news/156655

 

Tanker Shipping and Trade – As crude oil price reaches historical lows, Guyana’s first VLCC loads

Guyana’s first export by VLCC will have little impact in the current global market awash with cheap crude oil, but once the OPEC cartel and Russia return to their former pricing strategies, Guyana’s light low sulphur crude oil may prove popular. https://www.bunkerworld.com/news/156655

Tanker Operator – History’s largest oil glut months away from topping world storage while tanker freight rates explode

The largest oil supply surplus the world has ever seen in a single quarter is about to hit the global market from April, creating an imbalance of around 10 million barrels per day (bpd).

An exclusive Rystad Energy analysis shows global storage infrastructure is in trouble and will be unable to take more crude and products in just a few months. http://www.tankeroperator.com/ViewNews.aspx

Bunker World 2 articles:

Singapore middle distillate stocks swell to 6-month high as gasoil imports double

Singapore middle distillates stocks have ballooned to hit a six-month high after gasoil inflows more than doubled in the week ended March 19-25, Enterprise Singapore data released late Thursday showed. http://www.bunkerworld.com/news/i156708

India lockdown: Weak demand to hurt bunker industry; LSFO prices fall 15%

India’s bunker prices have declined sharply by as much as 15% due to a slump in demand as the country grapples with the deadly coronavirus pandemic by imposing a nationwide lockdown including ports. https://www.bunkerworld.com/news/156705

News Round Up:  22- 30 March

News Round Up: 22- 30 March

Shippingwatch: MSC accused of illegally carrying heavy diesel on board a ship

Container line MSC is accused by the United Arab Emirates of illegally carrying heavy diesel on board one of its ships that is only allowed to sail on low-sulfur fuel. MSC argues that the oil was to be used for a test. https://www.bunkerspot.com/global/50154-global-talusia-universal-lube-oil-receives-nol-from-wingd

 

Splash 24/7: Fuel price spread plummets to as low as $62 per tonne

Latest data from Ship&Bunker shows the average price spread between high and low sulphur fuel oil at the world’s 20 largest bunkering hubs stands at just $86 per tonne, putting scrubber investments into sharp focus. In some ports the figures are even more narrow with Fujairah having a price spread yesterday of just $64 per […] https://splash247.com/fuel-price-spread-plummets-to-as-low-as-62-per-tonne/

 

Lloyd’s Loading List: UAE bans MSC boxship for a year over sulphur cap violations

In what could be one of the first penalisations relating the HSFO carriage ban that came into effect earlier this month, the United Arab Emirates has banned an MSC containership and will take legal action against its master for violating the rules https://www.lloydsloadinglist.com/freight-directory/news/UAE-bans-MSC-boxship-for-a-year-over-sulphur-cap-violations/76202.htm

 

Bunkerspot: ASIA PACIFIC: Sinopec refinery begins VLSFO production

The Guangzhou refinery has delivered its first cargo of very low sulphur fuel oil.  https://www.bunkerspot.com/asia/50123-asia-pacific-sinopec-refinery-begins-vlsfo-production

Bunkerspot: GLOBAL: Talusia Universal lube oil receives NOL from WinGD

Total Lubmarine’s Talusia Universal (BN57) has received a No Objection Letter from WinGD for all fuels – liquid and gas – with a sulphur content between 0.00% – 1.50%. https://www.bunkerspot.com/global/50154-global-talusia-universal-lube-oil-receives-nol-from-wingd

 

Lloyd’s Loading List: IMO 2020 + Covid-19 = 0

Coronavirus-driven fall in oil prices has reversed the expected extra costs for container lines and their customers of this year’s new low-sulphur fuel rules, highlights Drewry Supply Chain Advisors https://www.lloydsloadinglist.com/freight-directory/news/IMO-2020-Covid-19-0/76220.htm

 

VPO: Effects of LSFO on cylinder condition shown 3 months after IMO 2020 implementation

The global 0.5 per cent sulphur cap has been in operation for nearly three months. The effects of low sulphur fuel oil (LSFO) and very low sulphur fuel oil (VLSFO) on cylinder condition compared with conventional high sulphur fuel oil (HSFO) are coming to light with preliminary field experiences showing issues associated with the fuel changeover. https://vpoglobal.com/2020/03/20/effects-of-lsfo-on-cylinder-condition-shown-3-months-after-imo-2020-implementation/