Clean Products News

As many as 35 oil tankers that usually carry crude or fuel oil could switch to carrying cleaner products like diesel and jet fuel in the next two months as shipowners chase higher profitability, oil analytics firm Kpler said in a LinkedIn post.An LR2 (long-range 2) type tanker typically carries cargoes of about 90,000 metric tons of cleaner fuels.

Global fuel suppliers are turning to longer and costlier routes that produce more carbon emissions to move their diesel and other products as Western restrictions on Russian cargoes have reshuffled global energy shipping patterns.As a result of the European Union ban on Russian fuel that started on Feb. 5, tankers carrying clean oil products such as gasoline, diesel, jet fuel and naphtha are traveling between 16 and 18 days to bring Russian supplies to Brazil or U.S. cargoes to Europe…

Oil tanker rates are soaring globally as traders scramble to cope with jitters over possible disruption in Russian supplies, as well as war risk premiums for ships plying the Mediterranean region following Moscow's invasion of Ukraine.Shipowners are also grappling with higher fuel costs after oil prices soared nearly $2 per barrel on Friday, with Brent back above $100. The global energy sector is concerned that Europe and the United States may impose sanctions on Russian exports and severely disrupt supplies.

The Suez Canal stepped up efforts on Friday to free a giant container ship blocking the vital trade waterway that has sent shipping rates for oil product tankers soaring and disrupted the global supply chains for everything from grains to baby clothes.Shipping rates for oil product tankers have nearly doubled after the 400 meter long Ever Given, almost as long as the Empire State Building is high, ran aground in the canal on Tuesday.Efforts to free the vessel may take weeks and be complicated by unstable weather conditions…

There has been a near absence of the demolition activity in tanker market this year, Gibson Shipbrokers said in its latest tanker market report. The scrapping likely to remain at low levels in the coming months, it added.During the first ten months of 2019, only 30 tankers over 25,000 dwt were reported sold for scrap. About half of all demolition activity has been in the Handy/MR size group, with 17 units removed since the beginning of the year.There were 3 Panamaxes/LR1s demolished and just 1 tanker in the LR2/Aframax size group. The count is marginally higher for larger crude carriers, with 5 Suezmaxes and 4 VLCCs sold for removals.Gibson said that this  is in stark contrast to developments last year, when over 150 units were scrapped.

A recent surge in tanker rates due to U.S.

Cosco  Shipping Energy Transportation (CSET) has placed an order for seven more ships at compatriot Guangzhou Shipyard International Company Limited (GSI), owned by CSSC Offshore & Marine Engineering Company Limited. The order will include two 64,900 dwt crude oil tankers, two 109,900 dwt LR2 vessels and three 114,000 dwt crude tankers, totaling in an investment worth approximately USD 323 million (RMB 2.14 billion.). Expected delivery dates for the two 64,900 dwt panamax crude tankers are on or before 29 February 2020 and 31 May 2020, respectively. The two 109,900 dwt LR2/Aframax clean products/crude oil carriers of 109,900 dead have expected delivery dates of on or before 31 October 2020 and 31 January 2021, respectively.

Today’s ATB play seemingly has legs for the long haul, as operators build and market needs fluctuate. The refined product trades are always in flux. Similarly, the supply patterns for products (and for chemicals derived from oil refining) are subject to constant change. At the same time, the distribution of refined petroleum products sees great benefit from the efficiency of Articulated Tug Barges (ATBs), which have the flexibility to adjust to dynamic supply programs between refineries and myriad distribution facilities dotting the coastline. It wasn’t always like that.

Oman Shipping Company (OSC) has officially set up a new commercial chartering desk offering its Very Large Crude Carrier (VLCCs) to major traders and charterers covering VLCC routes worldwide. OSC, one of the biggest ship owners in the MENA region, has a diversified and young fleet of 50 vessels. OSC owns 16 VLCCs within the fleet out of which OSC is now commercially managing 15 VLCCs through its subsidiary Oman Charter Company (OCC). The move follows an announcement in December 2016 which saw OSC withdrawing 15 VLCCs from the VL8 pool based in Singapore.

More than half a million tonnes booked Europe-U.S.; more bookings could follow in May. Traders are shipping more gasoline from Europe to the U.S. East Coast ahead of the summer driving season as a steady reduction in inventories there props up prices. At least 16 tankers carrying some 600,000 tonnes of gasoline blending components including naphtha have been booked in recent days by traders including Glencore, ExxonMobil, Mercuria, Repsol and Total, shipping data shows. That compared with an average of around 300,000 tonnes per week booked throughout March. The exports are helping to clear Europe's tanks of oil products and boosting profits for refining gasoline from just under $6 per barrel at the end of March to more than $13 per barrel on Thursday.

The Japanese refining industry has been experiencing challenging circumstances for a number of years, with significant rationalisation of refining capacity, according to Weekly Tanker Market Report by Gibson Shipbrokers. Reform in the Japanese refining sector is not a particularly new story; however, in March 2017, a government directive will come into effect, forcing refiners to further boost efficiency, whilst enhancing output of higher value clean products such as diesel and jet fuel. The latest directive is not the first introduced by the government and nor would it appear to be the final phase of the industry restructuring, with further directives potentially announced later this year.

Traders prep rare East Coast gasoline exports; cargoes already sailing with exported distillates. Traders are preparing to export cargoes of coveted gasoline from the U.S. East Coast after months of heavy importing and local production swamped the region. At least two cargoes of gasoline are lined up to sail to West Africa, according to three market sources, with others eyeing their own shipments. The United States consumed more than 9 million barrels per day of gasoline in 2016, accounting for nearly 10 percent of global oil demand. The East Coast accounts for over a third of the national consumption. The exports underscore the record stocks of motor fuel on the East Coast, which were overshadowed by an unexpected draw down across the nation as a whole.

Optimarin has signed a new agreement with Fincantieri Bay Shipbuilding (FBS) in Sturgeon Bay, Wis. for the delivery of two 500 m³/h capacity Optimarin Ballast Systems (OBS). The contract, identical to one secured last year, comes at a busy time for the Norwegian ballast water treatment (BWT) specialist, which has seen order enquiries go “through the roof” since securing U.S. Coast Guard type approval approval in December. The fresh agreement will see both systems installed on a 155,000-barrel capacity clean products barge, with delivery scheduled for August 2018.

Norwegian ballast water treatment (BWT) specialist Optimarin said it has secured a two-system contract with Fincantieri Bay Shipbuilding (FBS) in Sturgeon Bay, Wis. The agreement, which Optimarin said comes ahead of its imminent USCG approval, will see two 500 m³/h capacity Optimarin Ballast Systems (OBS) fitted on a single clean products barge. “The ability to trade in U.S. waters is key to global shipowners who want flexibility for their fleets,” comments Optimarin CEO Tore Andersen.

Europe is expected to receive its largest-ever diesel cargo after French refiner Total booked a super tanker to sail to the region even as it faces brimming storage tanks and wilting demand. Total has chartered the newly-built very large crude carrier (VLCC) tanker Alice to ship 270,000 tonnes of diesel, three times the typical cargo size on the route, from Asia to the port of Antwerp in Belgium, according to shipping data and Reuters ship tracking. A cargo of this size is bound to put more pressure on Europe's diesel prices in a market already facing an influx of imports in the coming weeks from all corners of the world. Euronav-owned…

Total charters VLCC to move diesel from Asia to Europe; Vitol ships diesel from Asia to Europe in Suezmax. At least two companies are planning to ship diesel in bigger-than-usual tankers from Asia to Europe in what traders said is a rare move as cheap oil drives up diesel supply and slowing economies dent demand. French oil major Total has provisionally chartered the very large crude carrier (VLCC) Alice on a six-month time charter to ship ultra-low sulphur diesel (ULSD) from Asia to Europe, traders and shipbrokers said. A VLCC can carry roughly 2 million barrels of oil. The ship will load diesel from Singapore or Malaysia to head to Europe and possibly ship crude oil back, one of the sources said.

Mitsui O.S.K. Lines, Ltd. (MOL) announced that a pool agreement governing the formation of a new medium range pool has been signed among the partners: MOL, Asahi Tanker Co., Ltd., Ultranav International S. A.(Ultranav) ., and OSG International, Inc. The new pool, Clean Products Tankers Alliance, will operate a combined fleet of around 60 medium range vessels. Ultranav, headquartered in Santiago will operate IMO-type vessels mainly for the Americas trade out of their office in Miami, and MOL whose main operations are in Tokyo, Singapore, London and Houston, will operate other vessels for worldwide trade. According to MOL, the joint pool agreement will enable more efficient arrangement of vessels…

Inchcape Shipping Services (ISS)  has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras. The Brazilian government-owned energy giant, which already uses ISS in Brazil, Chile, USA, Asia Pacific and China, has now requested that ISS support its expansion to 17 new port call locations in Central America and the Caribbean. ISS will handle Petrobras’ crude, clean products and LNG tankers, ensuring fast and safe turnaround of vessels in port or at terminals, ensuring all permits and clearances are in place and correct and issuance of cargo documentation.

Following the earthquake that struck on Friday 11th March, six Japanese refineries are reportedly closed. The plants in question, detailed in the table belo,have a combined capacity of 1.34m bbl/day, or around 28% of Japan’s total. The immediate effects of the earthquake are likely to cause a drop in oil demand, but it is likely that in the long‐run, oil and product demand could rebound to levels that surpass those seen pre‐quake as the country re‐builds. Furthermor with up to ten nuclear reactors shut down…

GAC’s in-house ship-to-ship transfer expert GAC Transfer Services (GTS) has responded to growing demand for LPG imports and exports of clean products in the Indian Subcontinent with the establishment of a new fully-equipped base in Sri Lanka. Ship-to-ship (STS) equipment such as fenders and hoses, in accordance with industry standards, is stored at GAC’s base in Galle, which is strategically located at the southern tip of the island nation, and is ready to be transported by tug to different locations according to demand and conditions.

As the demand for ship supply services off the island of Sri Lanka grows, so too has GAC Sri Lanka. The company has moved into new, bigger premises at Galle and Trincomaleeand opened a new branch in Hambantota to accommodate increased maritime activities and better meet its customers' needs. excellent base for offshore ship supply services. Demand for such services is set to grow as the government opens up more areas for oil and gas exploration. The call for more LPG imports and exports of clean products in the Indian Subcontinent has also resulted in a rise in the demand for ship-to-ship transfer services. "Furthermore, there has been an increase in the movement of security personnel at Galle due to growing concerns about sea crime in the Indian Ocean.

Looking at the global economy, although markets seemingly having a hard time digesting recent moves by the US Fed to scale back its bond purchasing program, a recovery appears to be on the horizon. One notable difference when compared to recent years has been that OECD economies, in particular the US, comprises a larger contribution to this development. This has been spurred by reduced energy costs on the back of the US oil boom which has been helping to reign in the unemployment level.

In their latest analysis, shipbrokers & marine transport consultants, McQuilling Services, in their latest analysis discuss observations, current and historical, for the clean tanker market, specifically MR tankers. The report concludes that they believe the current MR secondhand asset market will adjust to reflect the weak TCE (Time Charter Equivalent) environment over the longer term. " In Figure 1 [shown here] we display the price movements over the last 15 months for MR2 newbuildings, five-year and 10-year old vessels.