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.

 

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 – 27 April 2020

News Round Up – 27 April 2020

Seatrade: 31 Singapore-flagged vessels report scrubber malfunctions

Singapore-flagged vessels reported 31 scrubber malfunctions as of the end of February 2020.

Releasing figures on IMO 2020 compliance the Maritime & Port Authority of Singapore (MPA), which administers the Singapore Registry of Ships (SRS), said that of the “small number” of Singapore-flagged vessels fitted with scrubbers there were 31 reports of malfunctions as February 29 this year.

https://www.seatrade-maritime.com/ship-operations/31-singapore-flagged-vessels-report-scrubber-malfunctions

Bunkerspot: GLOBAL: Integr8 Fuels: HSFO will remain a feature of the bunker market

High sulphur fuel oil is going to be there for the long haul’ but sound market intelligence and close monitoring of avails and pricing levels will be required, says Steve Christy, Director of Strategic Communications at Integr8 Fuels.

https://www.bunkerspot.com/global/50353-global-integr8-fuels-hsfo-will-remain-a-feature-of-the-bunker-market

Bunkerspot: GLOBAL: VeriFuel releases Q1 2020 fuel quality statistics

Very low sulphur fuel oils accounted for 49% of samples tested by Bureau Veritas VeriFuel in the first quarter of 2020, with the percentage of VLSFOs meeting the 0.50% sulphur limit growing from just under 89% in January to over 95% in March.

https://www.bunkerspot.com/global/50369-global-verifuel-releases-q1-2020-fuel-quality-statistics

Bunkerspot: EUROPE: Southern European ports reflect narrowing high-low sulphur fuel price differential

Bunker prices in five key ports in Southern Europe are, by and large, mirroring the price trends seen at Rotterdam, but with some ports showing an even narrower price differential between high sulphur fuel oil and very low sulphur fuel oil than at the Northern European bunker hub.

https://www.bunkerspot.com/europe/50378-europe-southern-european-ports-reflect-narrowing-high-low-sulphur-fuel-price-differential

Lloyd’s Loading List: Lines under pressure to cut ‘obsolete’ low sulphur surcharges

The crash in crude oil prices and consequent severe reduction in bunker costs is increasing calls from customers for savings to be passed on by carriers

https://www.lloydsloadinglist.com/freight-directory/news/Lines-under-pressure-to-cut-%E2%80%98obsolete%E2%80%99-low-sulphur-surcharges/76435.htm

 

Daily Splash: Singapore detains two vessels for using non-compliant fuel

The Maritime and Port Authority of Singapore (MPA) has reported two vessel detentions for using non-compliant fuel in the first quarter to ensure the implementation of IMO 2020 sulphur regulations. According to the MPA, about 96% of the ships that arrived in the Port of Singapore used compliant fuel in the first quarter, excluding ships […]

https://splash247.com/singapore-detains-two-vessels-for-using-non-compliant-fuel/

Ship and Bunker: Scrubber Economics Under Pressure as Rotterdam HSFO Discount Narrows Below Key $50/MT Barrier

The discount for high Sulphur bunkers in Rotterdam has for the first time narrowed to under $50/mt, a level seen as an important psychological barrier for scrubber economics.

https://shipandbunker.com/news/emea/433053-scrubber-economics-under-pressure-as-rotterdam-hsfo-discount-narrows-below-key-50mt-barrier

Ship and Bunker: VLSFO Price Hits New Low, Bunker Costs Lowest Since 2016

The price of IMO 2020 compliant VLSFO bunkers in the four major bunkering hubs hit a new low Thursday alongside the continuing decline in the price of crude.

Ship & Bunkers Global 4 Ports (G4) index that tracks the average bunker prices across Singapore, Fujairah, Rotterdam and Houston, indicated the average VLSFO price Thursday fell to 235.50 $/mt – its lowest since records for VLSFO began in October last year.

https://shipandbunker.com/news/world/205725-vlsfo-price-hits-new-low-bunker-costs-lowest-since-2016

Ship and Bunker: TFG Marine to Join Singapore Bunker Market at Start of May

Global bunker supplier TFG Marine plans to join the Singapore bunker market at the start of May, after being awarded its license to operate in the world’s largest bunkering hub this week.

https://shipandbunker.com/news/apac/849963-tfg-marine-to-join-singapore-bunker-market-at-start-of-may

Freight Waves: Diesel’s price decline Tuesday was historic; crude’s fall sets another record

A day after crude oil trading on a major exchange turned negative, the price of ultra low sulfur diesel on the same exchange did something it hadn’t done in almost 30 years.

https://www.freightwaves.com/news/diesels-price-decline-tuesday-was-historic-crudes-fall-sets-another-record

Ship and Bunker: FEATURE: Rotterdam-Singapore Bunker Cargo Trade Collapses on IMO 2020 Changes

One of the less remarked-upon casualties of IMO 2020 so far has been the near-total collapse in the fuel oil cargo trade around Northwest Europe.

The high Sulphur fuel oil trade flow from Russia to Western Europe, and the on from the Amsterdam-Rotterdam-Amsterdam hub over to Singapore, used to be one of the mainstays of the bunker market.

https://shipandbunker.com/news/world/755801-feature-rotterdam-singapore-bunker-cargo-trade-collapses-on-imo-2020-changes

Ship and Bunker: Scrubber Retrofits Continue Despite Narrowing Price Advantage

Some container lines are persevering with scrubber retrofits despite the recent narrowing in high-sulfur fuel oil (HSFO) discounts that makes them look less profitable, according to shipping intelligence service Alphaliner.

https://shipandbunker.com/news/world/476322-scrubber-retrofits-continue-despite-narrowing-price-advantage

Bunkerspot: GLOBAL: VeriFuel releases Q1 2020 fuel quality statistics

Very low sulphur fuel oils (VLSFO) accounted for 49% of samples tested by Bureau Veritas VeriFuel in the first quarter of 2020, with the percentage of VLSFOs meeting the 0.50% sulphur limit growing from just under 89% in January to over 95% in March.

https://www.bunkerspot.com/global/50369-global-verifuel-releases-q1-2020-fuel-quality-statistics

Shippingwatch: Major oil fluctuations rub off on shipping lines’ fuel prices

The massive fluctuations in the oil price in recent days mean that the price of low-sulfur in the US on Wednesday was lower than that of high-sulfur fuel, notes shipping analyst Lars Jensen. Oil prices increase Thursday.

https://shippingwatch.com/carriers/Container/article12093913.ece

Seatrade: Bunker prices slip, high-low sulphur spread narrows to $56

Marine fuel prices have dropped significantly this week with the low sulphur grade nearing below $200 per metric tonne (pmt), narrowing its price differential with the high sulphur grade.

https://www.seatrade-maritime.com/bunkering/bunker-prices-slip-high-low-sulphur-spread-narrows-56

Heavylift: Clarity needed on bunker surcharges

Few could have predicted the rapid drop in marine bunker prices, or the differential between VLSFO and HFO narrowing so quickly, when the IMO’s sulphur 2020 regulations came into effect on January 1.

While shipping lines welcome the cheaper bunkers, the European Association for Forwarding, Transport, Logistics and Customs Services (Clecat) said that forwarders are yet to benefit from the 35 percent drop in fuel prices because of the one-to-two month lag in bunker fuel surcharge calculations.

Relaying the concerns of the European freight forwarding community, Willem van der Schalk, president of Clecat, said: “This gives rise to the suspicion that carriers are using the bunker adjustment factor (BAF) as a revenue-raising tool as well as a cost-recovery during the Covid-19 crisis.

“Whereas freight forwarders understand that carriers are facing increased costs to secure continuity of services, all other parties in the logistics supply chain are facing disruption and fall outs, not the least our clients, the shippers.”

The association is calling for greater transparency when it comes to fuel costs, especially as the supply chain tries to navigate these uncertain times.

https://www.heavyliftpfi.com/

Bunkerspot: EUROPE: Southern European ports reflect narrowing high-low sulphur fuel price differential

Bunker prices in five key ports in Southern Europe are, by and large, mirroring the price trends seen at Rotterdam, but with some ports showing an even narrower price differential between high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) than at the Northern European bunker hub.

https://www.bunkerspot.com/europe/50378-europe-southern-european-ports-reflect-narrowing-high-low-sulphur-fuel-price-differential

News Round Up 13 April 2020

News Round Up 13 April 2020

Hong Kong Shipping Gazette: Coronavirus dries up thirst for box ship ordering amid market uncertainty

CONTAINER shipping lines show no interest in fleet expansion as the industry struggles to ride out the fall out from the coronavirus pandemic that has led to a significant drop in orders at shipyards across all shipping sectors.

BIMCO chief shipping analyst Peter Sand was quoted as saying in a report by UK’s The Loadstar: “Uncertainty about future environmental regulations, as well as lower demand growth outlook in the coming years had many thinking twice before ordering a new ship. The very sharp decrease in market sentiment and global shipping demand has lowered contracting activity further.”

The analyst’s shipping market update notes that the earlier main issue of low sulphur compliance and recovery of the additional cost has been overtaken by the virus crisis.

https://www.shippingazette.com/menu.asp

Hong Kong Shipping Gazette: Scrubber installations to be scrapped as oil price falls off cliff

FINNISH technology group Wartsila says container and dry bulk ship owners are cancelling scrubber retrofits and installations in a move designed to cut costs. Alphatanker predicts a “flood of cancellations” as cost cutting and the erosion of marine fuel oil premiums render the sulphur abatement technology redundant.

The price of 0.5 per cent very low sulphur fuel oil now used by some 70 per cent of the international global fleet dived by 278 per cent in Singapore since the start of this year when it was as high as US$653.75 per tonne, according assessments compiled by price reporting agency Argus Media, reported London’s Lloyd’s List.

https://www.shippingazette.com/menu.asp

HLPFI: Brexit & bunkers preoccupy legal professionals

Global complications have always cast a long shadow over legal services in maritime commerce, whether tariff disputes or embargoes. Brexit and low-sulphur fuel regulations have been some of the key themes of the past 12 months, writes Gregory DL Morris.

https://content.yudu.com/web/42n2u/0A42uap/HLPFI.MarApr.2020/html/index.html

Heavy Lift: Covid-19 shakes up Sulphur 2020

The rapid spread of Covid-19 has had a multi-faceted impact on global shipping. HLPFI takes a look at how the outbreak has caused shockwaves in bunker prices and what this means for the implementation of the sulphur 2020 regulations.

https://www.heavyliftpfi.com/news/covid-19-shakes-up-sulphur-2020-1/

News Update 8 April 2020

News Update 8 April 2020

BUNKERSPOT: ASIA PACIFIC: BUNKERING OPERATIONS SET TO START AT HAMBANTOTA

Informed local sources have told Bunkerspot that bunkering operations at the Sri Lankan port of Hambantota are now set to begin.

https://www.bunkerspot.com/asia/50253-asia-pacific-bunkering-operations-set-to-start-at-hambantota 

 

BUNKERSPOT: PAVILION ENERGY CALLING FOR INDUSTRY STANDARD FOR LNG’S TOTAL GHG EMISSIONS

Pavilion Energy is calling on LNG suppliers to help develop an industry standard for the fuel’s total greenhouse gas (GHG) emissions, according to Reuters.

https://www.bunkerspot.com/global/50258-global-pavilion-energy-calling-for-industry-standard-for-lng-s-total-ghg-emissions

 

Bunkerspot: MAN ES low-speed dual fuel engines top 1 million operating hours

Our plan is very much to continue this dual-fuel focus – to this end, we recently released a Mk II ME-GI model and are currently, owing to market demand, developing an Otto-cycle variant – the ME-GA,’ says Bjarne Foldager, Senior Vice President, Head of Two-Stroke Business at MAN Energy Solutions. https://www.bunkerspot.com/global/50258-global-pavilion-energy-calling-for-industry-standard-for-lng-s-total-ghg-emissions

 

GLOBAL: New CEO for TFG Marine

Anders Grønborg has joined TFG Marine as Chief Executive Officer to oversee the company’s ongoing expansion efforts in the global marine fuel markets.

https://www.bunkerspot.com/global/50250-global-new-ceo-for-tfg-marine

 

BUNKERSPOT: CMA CGM will be suspending low sulphur surcharge next month

CMA CGM has announced that, ‘taking into consideration the current price of VLSFO’, the Low Sulphur Surcharge (LSS20) which it introduced on 1 December will not be applicable from 1 May.

https://www.bunkerspot.com/global/50259-global-cma-cgm-will-be-suspending-low-sulphur-surcharge-next-month

 

Sound market intelligence on global bunker prices is a ‘must have’ requirement for all maritime industry stakeholders

BPi offers bunker price indications in over 350 global ports, including for the new IMO 2020-compliant very low sulphur fuel oils (VLSFOs), and instant price comparisons across all ports.

https://www.bunkerspot.com/bpi

 

BUNKERSPOT: Maersk seafarers hospitalised in China with suspected coronavirus

DANISH shipping giant, AP Moller-Maersk has confirmed that crew members have been evacuated from the Gjertrud Maersk and hospitalised in Ningbo, China, with suspected cases of the coronavirus.

https://www.freightwaves.com/news/maersk-crew-hospitalized-in-china-with-suspected-coronavirus

REUTERS: Shipping industry calls on G20 leaders to allow merchant ships to call at ports

SHIPS and their crews must be able to trade freely with minimal port restrictions to ensure supply lines don’t collapse while the coronavirus places many major cities around the globe under lockdown.

https://www.reuters.com/article/us-health-coronavirus-shipping/shipping-industry-urges-g20-to-keep-freight-flowing-as-virus-hits-supply-chains-idUSKBN21B2AK

 

SPALSH 24/7 two articles:
IMO 2020 capped by coronavirus, stretched authorities ditch fuel checks

Less than three months after being introduced the global sulphur cap risks being another victim of the coronavirus with news from the UK where authorities have publicly admitted they have stopped checking for compliant fuel.

https://splash247.com/imo-2020-capped-by-coronavirus-stretched-authorities-ditch-fuel-checks/

Stena Bulk MR tanker takes on biofuel

Swedish tanker owner Stena Bulk has commenced a test to run one of its MR tankers on 100% biofuel. https://splash247.com/stena-bulk-mr-tanker-takes-on-biofuel/

 

Scrubber installations to be scrapped as oil price falls off a cliff

FINNISH technology group Wartsila says container and dry bulk ship owners are cancelling scrubber retrofits and installations in a move designed to cut costs. Alphatanker predicts a “flood of cancellations” as cost cutting and the erosion of marine fuel oil premiums render the sulphur abatement technology redundant.

The price of 0.5 per cent very low sulphur fuel oil now used by some 70 per cent of the international global fleet dived by 278 per cent in Singapore since the start of this year when it was as high as US$653.75 per tonne, according assessments compiled by price reporting agency Argus Media, reported London’s Lloyd’s List.

“Persistent low marine fuel prices will hit the fortunes of shipowners who have invested heavily to have their vessels equipped with scrubbers,” said Alphatanker, a research division of Paris-based brokers BRS.

The difference in price between compliant very low sulphur fuel oil (VLSFO) and 3.5 per cent high sulphur fuel oil used by vessels with scrubbers has shrunk to $50 per tonne, from $400 per tonne earlier this year, according to Alphatanker.

That has reduced the earnings premium for scrubber-fitted vessels and extended the payback time for the $2.5 million average investment to four years rather than four months for the largest vessels that have retrofitted the technology. Payback time will be even longer for smaller vessels, given the economies of scale.

“The question is now rightly being raised over whether scrubber installations will be cancelled,” Alphatanker said in its weekly report. “Installations due to be carried out in Chinese yards were already being delayed in the wake of Covid-19 and now following stellar returns for tankers, some owners are reportedly delaying or even, where possible, cancelling installations.

“Reports suggest that owners of bulkers or liners struggling amid the global downturn are also cancelling scrubbers as they strive to cut costs. We fear that this is just the tip of the iceberg and as the global recession intensifies during the second quarter, this drip of cancellations could turn into a flood.”

Some 2,753 vessels totalling 328.7 million deadweight tonnage (dwt) were trading and had scrubbers installed, according to the Lloyd’s List Intelligence database at the start of January.

A further 580 newbuildings were to have scrubbers fitted. Some 16.4 per cent of crude tankers, including one in five very large crude carriers, and 12.7 per cent of containerships have the technology installed. Dry bulk scrubber penetration is at 12 per cent.

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