News Round Up 22 June

News Round Up 22 June

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.

https://www.bunkerspot.com/americas/50737-americas-panama-s-may-bunker-volumes-slip-back-5-year-on-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.

https://www.bunkerspot.com/americas/50744-americas-new-joint-venture-will-look-to-process-heavy-crude-oil-using-quadrise-msar-technology

 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.

https://www.bunkerspot.com/global/50752-global-vlsfo-load-it-and-use-it-says-lr-s-douglas-raitt

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.

https://www.bunkerspot.com/global/50754-global-presence-of-shale-oil-in-vlsfo-blends-is-on-the-up

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.

https://www.bunkerspot.com/asia/50759-asia-pacific-australia-increasing-fines-for-pollution-related-incidents

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.

https://shipandbunker.com/news/apac/346356-bunker-futures-contract-starts-at-shanghai-exchange

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.

https://www.reuters.com/article/china-oil-imo-idUSL4N2DZ0W1

Ship & Bunker: Petrobras low Sulfur Focus Fuels Exports’ Rise

Big monthly increase over a year ago.

https://shipandbunker.com/news/am/458423-petrobras-low-sulfur-focus-fuels-exports-rise

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.

https://shipandbunker.com/news/apac/690728-singapore-bunker-margins-almost-double-in-a-week

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.

https://shipandbunker.com/news/apac/463618-singapore-sees-marginal-decline-in-bunker-demand-in-may

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.

https://www.bunkerworld.com/news/157297

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.

https://www.bunkerworld.com/news/157313

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.

https://www.bunkerworld.com/news/157309

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.

https://www.bunkerworld.com/news/157308

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.

https://www.bunkerworld.com/news/157322

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.

http://www.handyshippingguide.com/shipping-news/bunker-fuels-need-to-be-treated-cautiously-as-dangers-for-engines-can-lurk-in-low-sulphur-products_13004

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.

https://www.khaleejtimes.com/business/global/pandemic-forces-ship-owners-to-shelve-anti-pollution-gear

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.

https://www.hellenicshippingnews.com/three-steps-for-a-smooth-transition-to-imo-2020-preparation-flexibility-and-timing/

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