News Update 8 April 2020

News Update 8 April 2020


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



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.


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.


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.


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.


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.


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.

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.


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.

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.


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.