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.
https://splash247.com/un-secretary-general-calls-for-shipping-bailouts-to-be-tied-to-the-paris-agreement/

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.
https://www.rivieramm.com/news-content-hub/damen-delivers-five-zero-emissions-propulsion-ferries-for-the-danish-market-60112

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.
https://www.hellenicshippingnews.com/bp-sinopec-bunker-venture-to-start-fuel-oil-deliveries-to-fujairah-source/

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.
https://www.bunkerspot.com/americas/50890-americas-petrobras-replan-refinery-sets-new-vlsfo-monthly-production-record

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. https://www.bunkerworld.com/news/157422

Idemitsu Plant Raises VSLFO Output – Ship and Bunker

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

https://shipandbunker.com/news/apac/171237-idemitsu-plant-raises-vslfo-outputhttps://shipandbunker.com/news/apac/171237-idemitsu-plant-raises-vslfo-output

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

https://shipinsight.com/articles/south-korea-declares-local-secas

https://www.drybulkmagazine.com/shipping/03072020/republic-of-korea-implements-national-sulfur-emission-control-area/

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

https://www.reuters.com/article/global-oil-shipping-idUSL4N2EA2FU

Hong Kong Shipping Gazette  News hksg.com 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 29 JUNE

NEWS ROUND UP 29 JUNE

CHEM Europe: Development of sustainable marine fuels

In an EU-funded research project, an international consortium aims to develop new production methods for sustainable marine fuels to replace heavy fuel oils in shipping. The use of heavy fuel oils (HFOs) contributes to global warming due to the fossil origin of these fuels and, moreover, generating non-negligible emissions of pollutants such as sulphur oxides. The IDEALFUEL project aims to create sustainable alternatives by developing new efficient and low-cost methods to produce low-sulphur heavy fuel oils from wood-based non-food biomass. OWI Science for Fuels gGmbH and TEC4FUELS GmbH are involved in the project as research partners.

https://www.chemeurope.com/en/news/1166902/development-of-sustainable-marine-fuels.html

 

Hellenic Shipping News: Mounting transport fuel stocks add new twist to VLSFO specs

Shifting fundamentals in European transport fuel markets have affected operational requirements for shipowners using VLSFO, as blenders alter feedstocks to make their economics work amid the coronavirus pandemic while the bunkering industry grapples with this year’s lower sulfur content rules.

https://www.hellenicshippingnews.com/mounting-transport-fuel-stocks-add-new-twist-to-vlsfo-specs/

 

TheStar: Shippers face financial burden

KUALA LUMPUR: The delays in collecting cargoes during the movement control order (MCO) period has resulted in accumulated charges, causing financial burden to local shippers and manufacturers, says Malaysian National Shippers’ Council (MNSC) chairman Datuk Dr Andy Seo Kian Haw.

https://www.thestar.com.my/business/business-news/2020/06/29/shippers-face-financial-burden

 

Splash 247: China launches low- sulphur fuel futures

China has started the trading of the futures of low-sulphur fuel on the Shanghai International Energy Exchange from today.

Prior to the commencement of official trading, the exchange conducted two trials on June 13 and June 21 including daily trading and settlement.

The first day of trading commenced with a benchmark price of RMB2,368 ($335) per ton for monthly delivery contracts from January to June 2021 and the price has so far surged by around 13 % on the Shanghai International Energy Exchange.

https://splash247.com/china-launches-low-sulphur-fuel-oil-futures/?utm_source=dlvr.it&utm_medium=twitter

 

Indepthnews: Concerted Efforts to Offset Damage Caused by Arctic Shipping

REYKJAVIK (IDN) – The polar region located at the northernmost part of Earth is warming at an accelerating rate and as sea ice continues to melt away, Arctic waters are becoming increasingly navigable to vessels carrying heavy fuel oil (HFO). HFO, which is one of the world’s dirtiest fuels, is not only virtually impossible to clean up in the event of a spill, but also produces higher levels of air and climate pollutants than other marine fuels.

Aware of the severe risks that heavy fuel oil poses to polar environments, the international shipping community has already banned its use in the Antarctic. But, as experts point out, it is now time to provide similar protection to the Arctic – an ecosystem that is equally vulnerable to disturbance and pollution.

Until recently, 76 per cent of the fuel used in Arctic shipping was HFO. Ships typically used heavy fuel oil with a sulphur concentration of 2.7 per cent. But the International Maritime Organisation (IMO) has ruled that from January 1, 2020, the maximum sulphur content of ships’ fuel oil would be 0.5 per cent instead of 3.5 per cent. Subsequently, fewer ships are now using HFO.

https://www.indepthnews.net/index.php/sustainability/oceans-seas-and-marine-resources/3649-concerted-efforts-to-offset-damage-caused-by-arctic-shipping

 

VPO: Stena Bulk presents low emission tanker prototype

Stena Bulk has presented a prototype of the next-generation product and chemical tanker, the IMOFlexMAX, which will reportedly reduce greenhouse gas emissions by more than 25 per cent compared to current product tankers.

https://vpoglobal.com/2020/06/22/stena-bulk-presents-low-emission-tanker-prototype/

 

Ship and Bunker: Chinese VLSFO Exports dropped in May

Exports of very low sulphur fuel oil (VLSFO) from China dropped significantly last month according to news agency Reuters, in signs of a continuing impact of the Covid-19 pandemic on global shipping demand.

https://shipandbunker.com/news/apac/720042-chinese-vlsfo-exports-dropped-in-may

 

Ship and Bunker: OPEC+ Compliance May Deliver $500/MT VLSFO by End of 2021

Full compliance by members of the oil producer coalition OPEC+ to its output cuts deal could see Very Low Sulphur Fuel Oil (VLSFO) prices climb above $500/MT again by late 2021, according to bunker trading company Integr8 Fuels.

https://shipandbunker.com/news/world/556345-opec-compliance-may-deliver-500mt-vlsfo-by-end-of-2021

 

Ship and Bunker: Istanbul Market Faring Well Despite 8% Drop in Bunker Sales

Local bunker suppliers in Istanbul have sounded a positive tone despite a drop in marine fuel sales following measures put in place to address the COVID-19 pandemic.

https://shipandbunker.com/news/emea/948043-istanbul-market-faring-well-despite-8-drop-in-bunker-sales

 

Ship and Bunker: Pacific Green Retreats From Scrubber Sales as HSFO Discount Remains Narrow

Technology company Pacific Green has decided to scale back its presence in the marine scrubber business, in the latest sign of weakening prospects for the emission cleaning technology.

https://shipandbunker.com/news/emea/135150-pacific-green-retreats-from-scrubber-sales-as-hsfo-discount-remains-narrow

 

The installation of 700 scrubbers was cancelled due to Covid

According to Clarksons, many works entrusted to shipyards were cancelled due to the pandemic and to the drop in the price gap between traditional bunker oil and low-sulphur fuel oil

http://www.ship2shore.it/en/shipping/the-installation-of-700-scrubbers-was-cancelled-due-to-covid_74446.htm

 

Fujairah refiners mull switch from LSFO to light distillates as profitability plunges – traders

Key low sulfur fuel oil refineries in Fujairah belonging to Uniper and Vitol may switch to producing more profitable light distillates or mothball their refineries altogether if demand for LSFO remains depressed and prices unprofitable, traders in Fujairah said week ending June 26.

https://www.bunkerworld.com/news/157396

 

Shippingwatch: Bunker company predicts significant price increase for low-sulfur oil in 2021

If the Opec+ member states continue to comply with their agreement to lower oil production, the price of low-sulfur fuel oil could surge to over USD 500 by the end of 2020, assesses bunker company.

https://shippingwatch.com/suppliers/article12251702.ece

 

Motorship: KEEPING ENGINES RUNNING AMID 2020 FUEL CHALLENGES

Early reports on the variable quality of very low-sulphur fuel oils confirm research highlighting the need for robust cylinder lubrication when using the new fuel blends.

Looking back on the first three month since the implementation of IMO’s global sulphur cap, it seems that concerns over the variability of new very low sulphur fuel oil (VLSFO) blends were justified. To cite just one example, Lloyd’s Register’s Fuel Oil Bunker Analysis and Advisory Service (FOBAS) has issued three alerts on excessive sediments in VLSFO. FOBAS’ analysis shows that five percent of all VLSFO samples taken in Singapore in the first two months of 2020 had high sediment volumes. In Rotterdam the figure rises to 23%.

https://www.motorship.com/news101/fuels-and-oils/keeping-engines-running-amid-2020-fuel-challenges

 

Bunker price spread keeps scrubber economics unfavourable  By Michelle Wiese Bockmann

The price spreads being seen have extended the payback period for a scrubber capesize bulk carrier beyond five years, and more than three years for a very large crude carrier

The difference in price between high-sulphur fuel oil and the compliant 0.5% sulphur fuel oil is weakening the economic argument for scrubbers.

https://lloydslist.maritimeintelligence.informa.com/LL1132783/Bunker-price-spread-keeps-scrubber-economics-unfavourable

 

Hong Kong Shipping Gazette News .hksg.com

Article in full below.

TS Lines in search of new ships as Q1 profits soar 170pc to US$21.5m

CHAIRMAN of TS Lines, Chen Te Shen says controlling costs and services additions on routes with growing demand have led to the Taiwan carrier’s 170 per cent year-on-year increase in profits.

The Taiwanese operator of the intra-Asia carrier reported profits of TWD650 million (US$21.49 million), achieved by responding to challenging conditions caused by Covid-19 with the company withdrawing from the US trades and concentrating on operating intra-Asian and Asia-Australia routes. Mr Chen said the company further reduced costs by redelivering chartered vessels that were deployed on withdrawn services.

The leased fleet increased the flexibility of the company’s operations. While owning a certain percentage of newly built own ships, with high fuel efficiency, allowed the company to reduce costs further, reports Container News, Jacksonville.

Mr Chen said that there is a silver lining in the pandemic, as oil prices collapsed to an 18-year low, resulting in low-sulphur fuel oil becoming cheaper. This meant compliance with the International Maritime Organization’s emissions cap was more affordable.

“Oil prices fell sharply in March. As the fuel surcharge was calculated based on the oil price of the previous quarter, when our actual bunker costs fell, the company’s profit increased,” explained Mr Chen.

Cargoes to and from India and the Philippines declined during Q2, but TS Lines added services to Thailand and Vietnam, where cargo demand remained strong. Consequently, the carrier’s operating profit for Q2 2020 is forecast to be TWD700 million.

The chairman said: “We’ll continue to acquire vessels and commission newbuildings. Three years ago, we aimed to own five vessels. At the time, we operated 36 vessels. Today, we are operating 46 ships, including 12 owned vessels. Another three are under construction. Today’s newbuildings are fuel-efficient, but it takes two years for a vessel to be built. If there are suitable pre-owned ships in the market, we’ll consider second-hand purchases.”

 

BTJ 2/20 – Green loans by the book. How to embed environmental care in ship financing by Amy Lindemann, Senior Associate, Campbell Johnston Clark

The IMO 0.5% sulphur cap is now in force globally, while the Poseidon Principles, a banking code aimed at integrating climate considerations into lending decisions, have been widely adopted by many of the major ship finance banks.

Let us then explore the implications for the evolution of loan and finance lease documentation in shipping, as well as for the commercial elements of deals.

http://baltictransportjournal.com/index.php?utm_source=freshmail&utm_medium=email&utm_campaign=BTJ_e-newsletter&id=110

 

ICE LSGO futures net speculative length rises 6,045 lots on week

Speculative net long positions in ICE low sulfur gasoil futures rose 6,045 contracts to 34,899 in the week to June 16, according to ICE data June 22.

https://www.bunkerworld.com/news/157342

 

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 15 June 2020

News Round Up 15 June 2020

Ship and Bunker: Several Hundred Ships May Need Engine Upgrades to Cope with VLSFO

Running lower-viscosity fuels constantly may be causing engine problems for some older ships. Read in Full 

Ship and Bunker: VLSFO now available in Pakistan

The max 0.50% sulfur fuel is a straight run product with a viscosity range between 40 and 180 cSt. Read in Full 

Ship and Bunker: Brokerage NSI Warns Shipowners to Prepare for Lower Korean Sulfur Limit

The rule will just apply at berth and anchorage from September, but is due to be extended to cover all of South Korea’s waters from January 1, 2022. Read in Full 

Ship and Bunker: Repsol Expands VLSFO Supply Locations in Spain

From June the company can now deliver VLSFO by truck from 15 Spanish ports. Read in Full 

Ship and Bunker: Finland Trials “Sniffer Bouy” to Monitor Sulfur Regs Compliance

The trial began at the end of May with the pilot period running until autumn 2020. Read in Full 

Bunkerworld: Asian maine fuel market recovery slows amid thin demand,ample supply

Initial signs of recovery seen in the Asian marine fuel market have faded amid ample supply and slow demand with the contango structure weakening from three-month highs reached June 5, market sources said June 12. In Full »

Bunkerworld: European HSFO seeing support from dwindling supply

High sulfur fuel oil — the main marine fuel globally before IMO 2020, a ‘greener’ regulation from January 1 — has found support from a sharp drop in production, with the lack of volume in Europe underpinning its value. In Full »

Bunkerworld: Singapore’s residue stocks steady June 10 as bunker fuel demand still low

Singapore’s commercial onshore residue stocks were largely unchanged at 25.687 million barrels, or 4.05 million mt, as of June 10, when compared with 25.685 million barrels a week ago, Enterprise Singapore data released June 11 showed, as bunker demand has yet to recover. In Full »

Bunkerworld:  REFINERY NEWS: PetroChina Guangxi produces first VLSFO for bonded bunkering

A 3,250 mt batch of 0.5% sulfur marine fuel produced by PetroChina’s Guangxi Petrochemical became Guangxi’s first domestically produced fuel oil cargo to enjoy a value-added-tax rebate, a source at the refinery said June 12. In Full »

Bunkerworld: Pakistan’sOrion Bunkers targets barge fleet expansion

Pakistan’s Orion Bunkers Ltd. plans to expand its bunker barge fleet as demand for cleaner fuels gains impetus after the International Maritime organization’s global low sulfur mandate, the company’s director Zishan Arshad told S&P Global Platts. In Full »

Bunkerworld: Kiire emerges as major high sulfur bunker port in Japan with JXTG as sole supplier: traders

The port of Kiire, located in South Kyushu in western Japan, has emerged as a major high sulfur bunkering port in the country, with JXTG Nippon Oil & Energy starting as sole supplier there, bunker traders said June 12. In Full »

Bunkerworld: Japan marine fuel 0.5% differentials in discounts in June; market seen bottoming

The delivered Tokyo Bay marine fuel 0.5%S differential to Singapore 10 ppm gasoil cargo assessments has remained in discounts so far in June, averaging minus 53 cents/mt over June 1-10, compared with a premium of $7.56/mt over May 20-29 and a monthly average of $21.41/mt in May, S&P Global Platts data showed, as weak demand coupled with ample supply weighed on the market this month. In Full »

Bunkerworld:  Singapore 180/380 CST HSFO spread widens to 3-month high on strong 180 CST demand

The strong demand for 180 CST high sulfur fuel oil for power generation has widened the spread between FOB Singapore 180 CST HSFO and 380 CST HSFO, otherwise known as the viscosity spread, to a three-month high of $15.40/mt on June 10, fuel oil traders in Singapore said.

https://www.bunkerworld.com/news/insight/157245/Atsuko-Kawasaki/Singapore-180-380-CST-HSFO-spread-widens-to-3-month-high-on-strong-180-CST-demand

Bunkerworld:  Singapore July ex-wharf MF 0.5% S bunker term talks inconclusive on wide bid-offer spread

Negotiations for the term supply of Singapore ex-wharf marine fuel 0.5%S bunker for July were largely inconclusive so far, as the market was still awaiting cues on near-term price direction amid a wide bid-offer spread, market sources said June 9. In Full »

Bunkerworld: FEATURE: High Sulphur IFO 380 bunker fuelfaces reduced demand at LatinAmerican ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  FEATURE:High sulfur IFO 380 bunker fuel faces reduced demand at Latin American ports

As the Latin American bunker fuel market approaches six months since the rules for lower sulfur content in marine fuels took effect globally, a market for high sulfur IFO 380 fuel can now only be found at a reduced number of ports in the region, according to local data and bunker sources. In Full »

Bunkerworld:  European LSSR strengthens on VLSFO blending despite muted bunker demand

Northwest European low sulfur straight run values rose sharply June 8, following a competitive bid in the Platts Market on Close assessment process. In Full »

Bunkerworld:  Fujairah’s fuel oil exports fall to 18-month low with supplies held in storage

“Fuel oil in Fujairah storage will see seasonal pull from Saudi Arabia, which will soon ramp up HSFO imports,” Wright said. In Full »

Tank News International: HES Wilhelmshaven Tank Terminal LSFO production becomes operational

The Low Sulphur Fuel Oil (LSFO) production unit, which has a nameplate capacity of approximately 2.5 million tons of LSFO per year, located at HES Wilhelmshaven Tank Terminal GmbH (HWTT) in Germany has commenced operations. HWTT is a 100 per cent subsidiary of HES International BV.

 

https://www.tanknewsinternational.com/hes-wilhelmshaven-tank-terminal-lsfo-production-becomes-operational/

Bunkerspot: GLOBAL: Great Eastern ‘going ahead with scrubbers’ but ‘projects not going to be as good as originally envisaged’

Speaking during an earnings conference call last week, Great Eastern Shipping’s Chief Financial Officer G. Shivakumar said the company will ‘go ahead’ with its planned scrubber installations but accepted that ‘the projects are obviously not going to be as good as we had originally envisaged’ because of the reduced price differential between high and low sulphur fuel oils.