Oil Costs News

Vessel operating cost inflation has accelerated in 2022 on mounting worldwide macroeconomic price pressures, despite some receding of Covid-19 related costs, according to the latest Ship Operating Costs Annual Review and Forecast 2022/23 report published by global shipping consultancy Drewry.Drewry estimates that average daily operating costs across the 47 different ship types and sizes covered in the report rose for the fifth consecutive year to reach $7,474 in 2022, a rise of 2.2%.

Capesize index plummets to -133, the first time ever in negative territory – is it all up from here?The Baltic Exchange Capesize Index (BCI) dropped to -133 index points on February 4, 2020, turning negative for the first time ever on January 31, 2020. The composite BDI index (BDI), which has excluded the more stable handysize segment since March 2018, also dropped on February 4, 2020 to settle at 453 index points.The BCI has been on a freefall through the entirety of December, but the descent started to pick up more steam during the past couple of weeks.

Prices for very low sulphur fuel oil (VLSFO) in ports around the world have fallen within the first month since the International Maritime Organization's (IMO) new regulation for a 0.50% global sulphur cap for marine fuels has taken effect.Singapore has seen one of the largest drops in the price of VLSFO, which peaked on January 7, 2020 at $740 per metric ton (MT) and dropped $99 to $641 per MT on January 22, BIMCO points out.Prices rose in December as shipowners transitioned…

The final quarter of 2019 marked a massive decline of high-sulphur fuel oil (HSFO) sales, as the industry transitioned into compliance of the International Maritime Organization's (IMO) 2020 Sulphur Cap (IMO 2020). In Singapore, the world’s largest bunkering hub, the bunker sale landscape saw significant change as the sale of high-sulphur fuel oil dropped tremendously in a matter of months. In contrast, the sale of low-sulphur fuels skyrocketed in the final quarter.The first wave…

Marine lubricant choices to address International Maritime Organization (IMO) restrictions on the fuels used by ships from 2020 must be based on verifiable cylinder oil performance data and engine testing to cover all operating conditions, according to the new General Manager of Shell Marine, Joris Van Brussel.Based in Singapore, Joris has gained experience across Shell’s fuels, lubricants and renewables businesses worldwide, with roles in licensing, branding and retail activities…

GE Transportation signed a $1 billion framework agreement in Ukraine, marking a major milestone in the country’s efforts to modernize its transportation infrastructure and strengthen its position as a key European rail hub and trade corridor. The agreement, which is the largest ever for GE in the country, includes the supply of 30 GE Evolution Series freight locomotives to Ukrainian Railways, as well as additional locomotive kits over 10 years, the rehabilitation of locomotives in the railway’s legacy fleet, and long-term maintenance services. Ukrainian President Petro Poroshenko presided over the signing ceremony alongside Rafael Santana, President & CEO of GE Transportation.

MAN Diesel & Turbo’s Part-Load Optimization is a tuning method designed to optimize fuel-oil consumption during the part-load operation of four-stroke, small-bore MAN auxiliary engines. “Part-Load Optimization works on the principle that fuel consumption is reduced at low and part load at the expense of a higher fuel consumption in the high-load range, without exceeding the IMO NOx limit,” explained Finn Fjeldhøj – Head of Small-Bore, Four-Stroke Engineering – MAN Diesel & Turbo. “We can deliver new engines pre-optimized or retrofit as necessary.

Total annual operating costs in the shipping industry fell by an average of 1.1 percent in 2016, says international accountant and shipping consultant Moore Stephens. This compares with the 2.4 percent average fall in costs recorded for 2015. For the second successive year, all categories of expenditure were down on those for the previous 12-month period, most notably for insurance costs and stores. The findings are set out inMoore Stephens’ ship operating costs benchmarking tool OpCost 2017…

Orient Overseas Container Line (OOCL) has appointed Shell Marine to provide its integrated marine solutions, which include lubricants and services for OOCL Hong Kong. OOCL Hong Kong, currently plying routes between Asia and Europe, is the latest vessel to claim the title of ‘world’s largest containership’, with a capacity of 21,413 twenty-foot equivalent units (TEUs), measuring 400m in length and 59m in width. The ship is equipped with MAN Diesel & Turbo’s (MDT) G-type engines that represent the latest in two-stroke engine technology.

Vessel operating costs are expected to rise in both 2016 and 2017, according to the latest survey by international accountant and shipping consultant Moore Stephens. Repairs and maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 1.9 percent in 2016 and by 2.5 percent in 2017.

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015. This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction in such costs. All categories of expenditure were down on those for the previous 12-month period. This suggests continued pragmatic management of costs by ship owners and operators, as well as a reduction in active trading for some owners as a result of the prolonged worldwide economic downturn.

“K” Line Ship Management (Singapore) Pte Ltd has selected ClassNK Consulting Service’s machinery condition monitoring and automatic diagnostic system ClassNK CMAXS LC-A for use on one of its container vessels, marking the first commercial application of the software. “K” Line Ship Management (Singapore) Pte Ltd selected ClassNK CMAXS LC-A after a successful trial installation in 2014 delivered proven fuel and lubricating oil savings of 200 tons/year. The trial was carried out as part of a joint research project in collaboration with ClassNK and Diesel United Ltd. ClassNK CMAXS LC-A uses innovative diagnosis algorithms to analyze multiple sensor data in the engine room and detect any early signs of machinery damage.

Total annual operating costs in the shipping industry fell by an average of 0.8 percent in 2014, said international accountant and shipping consultant Moore Stephens. This compares with the 0.3 percent average fall in costs recorded for 2013. All categories of expenditure were down on those for the previous 12-month period, confirming that ship owners and operators continued to manage costs sensibly and to watch their cash carefully in 2014. The findings are set out in OpCost 2015…

To optimize vessel’s engine performance and efficiency, LUKOIL Marine Lubricants has developed the iCOlube system, which had its U.K. official launch on September 8, 2015 in London. According to LUKOIL, the iCOlube cylinder oil lubrication unit tailors the alkalinity reserve to engine load and fuel. The feed rate always stays at optimum level, while only the fuel sulphur content needs to be entered. This way, it maintains better engine conditions, reduces oil costs, saves fuel and is environmentally friendly, the manufacturer said.

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media. The chances of mergers between China Ocean Shipping, China Shipping Container Lines, Sino Trans & CSC Holdings and China Merchants Group  has improved as they now suffer in a lackluster business climate, the Chinese-language Securities Daily reports. COSCO Shipping and China Shipping Container Line (CSCL) , which control 80 per cent of the Asian country’s domestic shipping market between them, have already agreed to operate together on China’s domestic routes. If the two carriers, both of which are owned by the state, do merge, it would create a box carrier with 1.3 million TEUs of capacity.

January 1, 2015 is an important date for ship owner and operators to ensure that their vessels, when operating inside ECA zones, are doing so in compliance with strict new emission edicts concerning the emission of sulfur. – to discuss some of the technical and logistical matters you must consider. The move to low sulfur fuels is well recorded, but from your point of view, describe the situation that ship owners face regarding fuel selection and cylinder lubrication come January 1, 2015?

Nippon Mitsubishi Oil Corp. and Cosmo Oil Co. Ltd., Japan's largest and third-largest oil refiners respectively, will integrate their tanker operations in November as a streamlining step under a year-old alliance. The companies said they expect to cut their combined freight costs by at least $4.62 million a year through the move. Japanese oil companies are under tremendous pressure from larger foreign-owned rivals like Exxon Mobil Corp. to cut costs and boost efficiency to restore profitability, which has been severely eroded by their inability to fully pass along higher crude oil costs by raising prices. Under the agreement, Cosmo Oil will pay $258,500 to acquire a 35 percent stake in Nippon Mitsubishi's wholly owned tanker unit Nippon Ryoyu Tanker Co.

The offshore supply vessel market remains as competitive as ever, with companies attempting to lure customers with the best possible value for their day rates and other appealing offers. Hornbeck Offshore Services Inc., Mandeville, La., found a simple answer to stay ahead of the competition: build a well-designed fleet and equip it with the best technology you can afford. "It's that simple," says Carl Annessa, Hornbeck vice president of operations. "Customers want to contract boats that get the job done for the best value. Hornbeck Offshore owns a fleet of seven offshore supply vessels (OSVs) that are contracted to oil companies for oil exploration and production services, as well as drill rig support in deep water.

operating costs for most types of ship. have risen about 1.3 per cent overall for most ship types. made the most impact. costs down. largest ships seeing the largest percentage rise in operating costs. classes of vessels we report on as more owners contribute data. unique resource, and this year we have used it on some significant projects. paying out the right amounts or not. running costs of over 800 ships for the accounting year 2002. coastal vessels into tanker and dry cargo types. administration. inclusion. and voluntary contributors receive free reports. details within the database can be tailored to individual needs.

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency modifications to the main engine (Mitsui-MAN B&W 12K98MC/M6) of three large type container vessels. In recent years the rising costs of fuel oil together with the need to reduce the environmental impact of shipping vessels have sharply increased the practice of slow steaming especially for large container vessels whose annual fuel oil costs can run into the billions of Yen.

Company plans to supply LNG to the northeastern U.S. GDF SUEZ Gas NA has announced  the advanceLNG Project, an initiative to provide attractively priced LNG to a wide array of customers in the U.S. Northeast. Starting today through December 31, 2013, GDF SUEZ Gas NA is accepting non-binding bids for LNG supply from the proposed project. While LNG from GDF SUEZ Gas NA's facility in Everett, Massachusetts has helped for more than 40 years to assure sufficient supplies of natural gas in New England, particularly during the coldest winter periods, the LNG market has vastly expanded.

Brazil’s Libra pre-salt field, in Block SS-AUP1 in the Santos Basin, with estimated recoverable oil volumes of 8-12 billion barrels of oil equivalent (BOE) and in place volumes of between 25-40 billion BOE, was the country’s first pre-salt field to be auctioned. The rules governing this historical auction have been shunned by important super-majors such as Exxon Mobil, Chevron and BP and also by major players such as the BG Group and Statoil. Many industry analysts were surprised that state-owned players from China, India and Malaysia dominated the list of companies that have agreed to the controversial terms imposed by the Brazilian government, through its National Petroleum Agency (ANP).

Drewry Shipping Consultants, the world's leading maritime consultants, has released its latest special report entitled: “Floating Production Storage and Offloading (Offtake) unit (FPSO)”. Drewry analyses the origins of the industry in the 1970s and how it has progressed to present day, as well as predicting a future of growth. Drewry's positive outlook for the FPSOs market stems from extensive research, which identifies high oil prices and strong demand for oil as the key triggers for 'marginal oilfields' now becoming more attractive financially. “The FPSOs market has come a long way since its inception in the 1970s. Offshore technology was still in its infancy and the tanker market was struggling due to escalating oil costs caused by the Middle East conflict…