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 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/

 

China to extend sulfur limitations for bunker fuels along entire coastline

China to extend sulfur limitations for bunker fuels along entire coastline

Hunan, China — China is set to tighten its sulfur-limit restrictions for ships by extending the 0.5% bunker fuel sulfur limit from the initially designated Emission Control Areas (ECAs) to the entire coastline, industry sources told Platts.

In view of the rising concerns over environmental pollution, tightening sulfur-limit restrictions is no surprise, a Beijing-based coal trader noted, adding that coastal shipowners will have to bear the brunt, and in turn, may be forced to raise coastal freights.

Read the full article here

BIMCO weighs in with help on charters ahead of low-sulphur fuel regulations

BIMCO weighs in with help on charters ahead of low-sulphur fuel regulations

BIMCO has published two IMO 2020 clauses for inclusion in charter parties relating to the content of bunkers after 1 January 2020, covering the transition from 3.5% sulphur content heavy fuel oil (HFO) to 0.5% low-sulphur fuel (LSFO).

The world’s largest shipping association, which counts over 65% of global tonnage within its membership, said it was also setting up a working group to examine if an exhaust gas cleaning system (scrubber) clause would be required.

Scrubber technology, which acts as a mini onboard refinery by washing sulphur from the fuel, will allow ships to continue to consume cheaper HFO after 1 January 2020.

Although it is expected that only around 5% of ships will have scrubbers installed by the start of IMO 2020 regulations, that proportion could increase substantially if the investment affords shipping lines a long-term advantage over competitors opting for LSFO.

Read the full article here 

 

IMO2020 fuel could come with “best before” dates

IMO2020 fuel could come with “best before” dates

The new breed of “hybrid” IMO2020 bunkers expected on the market could come with “best before” dates.

Bunker buyers have already been warned about stability an compatibility issues with the new 0.50% sulfur fuels, but the idea that there could also be a time-sensitive component to this will add a dimension of complexity to vessel operator’s fuel management procedures.

Read the full article here