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Clean Product News

06 Apr 2023

Western Restrictions on Russian Oil Reshuffle Global Shipping Patterns

©Happyphotons/AdobeStock

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…

24 Apr 2020

Baltic Exchange Adds Tanker OPEX Assessments

© aerial-drone / Adobe Stock

The Baltic Exchange has added quarterly assessments of the cost of operating crude oil carrying Aframax tankers and clean product carrying Medium Range (MR) tankers to its growing suite of shipping investor tools.The new service is based on assessments made by independent third-party ship management companies Anglo Eastern, Fleet Management and V-Ships. Using the full suite of independent Baltic Exchange indices, investors are now able to benchmark daily vessel earnings, running costs, sale & purchase and recycling prices.

28 Jan 2020

Teekay Tankers Closes $533M Credit Facility

Bermuda-based operator of mid-sized tankers Teekay Tankers has closed a new five-year, $533 million revolving credit facility to refinance 31 vessels.The size of the new debt facility was reduced since announcing the term sheet signing in November 2019 as a result of excluding five vessels from the new facility, including the three vessel sales noted above and a potential for further opportunistic vessel sales.The proceeds from the new debt facility will be used to repay approximately $455 million of the company’s existing debt. The new debt facility has substantially similar terms and extends balloon maturities from 2020/2021 until the end of 2024.Including the agreed asset sales and the new debt facility…

26 Jun 2019

Market in Focus: Gas Ships

© vladsv/Adpbe Stpcl

Infrastructure continues to expand, and pricing incentives will continue to shift as the market matures. The LNG markets look like they may resemble the clean product tanker market in several years, which is highly arbitrage driven. We look to see an increased number of portfolio players working the spot market, which will drive the commoditization of the space and enable further demand.The total ton-mile demand for LNG carriers has increased over the past several years. More than 60 countries have imported LNG cargoes in the past quarter…

09 Apr 2019

Maersk Expects Tanker Market to Improve

Maersk Product Tankers A/S said that the product tanker market, which was challenging in 2018  is expected to improve from the end of 2019.The company that transports refined oil products through its product tankers vessel fleet said in a press release that while fleet growth had slowed significantly over the previous two years, the market remained heavily oversupplied.Product trade demand growth was positive, but below historical ranges. As a result, product tanker freight rates fell. This decline, combined with high fuel prices, depressed industry earnings, reaching lows not experienced since the 2008/9 financial crisis.After hitting near record lows in the third quarter of 2018, however, the market rallied in the fourth quarter.

12 Mar 2018

Russia Ramps up Fuel Exports in Fight for European Market

© Mikhail Perfilov / Adobe Stock

Russia plans to sharply increase fuel exports and carve out a larger share of the European market following an extensive $55 billion modernisation of its refineries, companies' plans and analysts' reports show. Russia embarked on a modernisation of its biggest refineries in 2011 following a fuel shortage crisis. It also changed its tax system to favour production of cleaner and higher-quality fuel. The modernisation, which has not been completed yet, led to a surge in output of light products and exports, which has hurt European refineries' margins.

09 Nov 2017

Better Outlook for Chemical Tankers

Subdued ordering and a narrowing in the tonnage supply-demand gap from late 2018 is expected to support a recovery in the chemical shipping market, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry. Drewry estimates that tonne-mile demand of chemical commodities will grow at 3.8% on a year-on-year basis in 2017, of which the organic trade is likely to grow only at 1.5%. By contrast, inorganic and vegoil tonne-miles are expected to increase by 6.3% and 6.5%. Drewry estimates that the global chemical trade will grow at 3.3% in 2017, owing to the strong vegetable oil trade from Southeast Asia to South Asia.

28 Jul 2017

Capital Product Partners Sings Pact for $460 Mln Refinancing

Capital Product Partners  entered into a firm offer letter for a senior secured term loan facility of up to $460.0 million with HSH Nordbank AG and ING Bank as mandated lead arrangers and bookrunners and BNP Paribas and National Bank of Greece S.A. as arrangers. The lenders also include Alpha Bank S.A., Piraeus Bank S.A. and Skandinaviska Enskilda Banken AB (Publ). The closing of the credit facility is subject to finalization of the long form loan documentation. "We intend to use the net proceeds of the loans under the New Facility, together with available cash of approximately $120.6 million, to refinance, four out of five of our existing credit facilities amounting to $580.6 million in total," says a statement from the company.

26 Jan 2017

2017-2021 Tanker Market Outlook: McQuilling

McQuilling Services has released its 20th Anniversary Edition 2017-2021 Tanker Market Outlook. This 200-page report provides a five-year spot and time charter equivalent (TCE) outlook for eight vessel classes across 19 benchmark tanker trades, plus two triangulated trades. Also included in the report is a robust five-year asset price outlook as well as a one and three-year time charter forecast through 2021. With 20 years of tanker rate forecasting expertise, McQuilling Services is a leader in the industry and continues to support a variety of stakeholders in the energy, maritime and financial services industries with its annual Tanker Market Outlook.

28 Jan 2016

McQuilling Releases 2016-20 Tanker Outlook

McQuilling Services has  announced the release of the 2016-2020 Tanker Market Outlook. This report is a five-year outlook for eight vessel classes across 18 benchmark trades and represents the company’s 19th forecasting cycle. After over 10 years of tanker rate forecasting, McQuilling Services is a leader in the industry and continues to support a variety of stakeholders in the energy, maritime and financial services industries with its annual Tanker Market Outlook. Our full-year 2015 projection from last year’s Tanker Market Outlook tracked within 5% of actual market levels on the 15 trades forecasted. For the nine DPP trades, the original forecasts ended the year within 3% of recorded levels, while the six CPP trades ended within 7%.

16 Nov 2015

Two Product Tankers Collide in the Arctic

Two Product tankers, Svyatoy Petr and Svyatoy Pavel collided during a passage of Northern Sea Route in convoy with nuclear icebreaker Vaygach. The collision happened on 70 nautical miles SouthWest off New Siberian islands in Laptev sea. The both small clean product tankers (both 11,000, built 1992) are operated by Russia’s Morskoy Standart, according to reports. The both ships were proceeding in convoy one after another, when the tanker Svyatoy Petr got engine failuer and lost propulsion power and distance between both vessels was too short to prevent collision. After the accident the product tanker Svyatoy Petr suffered damaged bulwark in portside stern, while vessel Svyatoy Pavel got crack in starboard bow. There were no injuries reported.

09 Nov 2015

Changes in Asian Refining Bodes Well for Product Tankers: Poten and Partners

Refining capacity in Asia has been growing rapidly for many years. Not surprisingly, the vast majority of this growth took place in China, which more than doubled its refining capacity over the last 10 years. The other significant growth engine in Asia has been India. However, the impact of these two refining powerhouses on the product tanker market has (so far) been very different. While a significant portion of India’s new refining output has been exported into world markets, boosting demand for all sizes of product tankers, China’s growth has been predominantly focused on satisfying rapidly expanding domestic demand. However, the future may look different from the past and product tanker owners are likely to benefit from continued growth in Asia’s clean product trades.

09 Jul 2015

Gasoil Availability Expands on Gulf Coast

MGO and ECA products are available in volume throughout the Gulf Coast. Atlantic Gulf Bunkering LLC, a division of Bunkers International LLC, announced today that the company has expanded availability of both MGO and ECA product that meets the 2015 ECA specification of 0.1% (1,000 ppm) maximum sulfur. The company has expanded its owned barging capacity, storage and third-party trucking availability. “We are seeing great demand for MGO and ECA products,” said John Canal, CEO of Bunkers International Corp., “With the 2015 regulatory changes, demand has surged, and we have scaled up our operation to meet that demand. The ECA product being offered by Atlantic Gulf Bunkering is a fuel oil product that has a low pour point, high flash point, low metals and viscosity similar to IFO 30.

10 Feb 2015

Indian Diesel Cargoes to Australia in Rare Move

India-Australia vessels booked despite higher freight costs; Chevron moving 1-2 cargoes a month to Australia. Indian diesel cargoes are being shipped to Australia in a rare move as rising competition from new Middle East refineries has made it more difficult to land the fuel in India's core traditional markets in Europe and Africa. Diesel is typically shipped to Australia from North Asia or Singapore as freight rates for the India-Australia route can cost as much as 50 percent more, traders and shipbrokers said. Yet several vessels have been chartered on the higher-priced route since late last year, the traders and brokers said. Chevron…

19 Feb 2014

Gulf of Thailand Tankship Still Aground After 6 Weeks

Songkhla Port (Orapin4, apparently just in view): Photo Wiki CCL

Rough weather in the Gulf of Thailand is thwarting attempts to re-float an oil tanker that ran aground near the port of Sonkhla as long ago as January 9, 2014, according to 'The Nation' newspaper. A sand-suction dredger was deployed to create a water channel on the beach to allow the oil tanker Orapin 4 to move back to sea off Songkhla; however, the operation came to a temporary halt as the dredger was forced to take shelter at Nu Island amid strong winds. The Meteorological Department has forecast rough seas in the area until Sunday, February 23, 2014, reports 'The Nation'.

12 Feb 2014

Tanker Market 2014 Foundations Shaky Say Analysts

Tanker contracting 2004-13: Diagram courtesy of McQuilling Services

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.

24 Jan 2014

Tanker Market Outlook: Emerging Signs of Recovery Says New Analysis

VLCC: Photo CCL

As we start 2014, signs of a recovery are starting to emerge. On the back of lower energy costs, the US economy is set to grow and unemployment levels have been falling, reads the '2014-2018 Tanker Market Outlook' by McQuilling Services. The imbalance of tanker supply in relation to ton-mile demand will have an impact on spot rates. While 2012 saw deliveries and deletions under/over our projections by 20%, history was unable to repeat itself. Although tanker deliveries from yards were less than expected in 2013, the same was true in regard to vessels being taken out of the trading fleet.

13 Dec 2013

Diamond S. in CarVal Investment Fund Product Tankers Deal

Diamon S. Vessel: Photo courtesy of the owners

Diamond S Shipping Group inform they have acquired three modern medium-range clean product tankers from funds managed by CarVal Investors. In the transaction, a group of funds managed by CarVal became a significant investor in the Diamond S clean product tanker business, and Ranjit Ahluwalia, managing director of CarVal, joined the Diamond S Board of Directors. Founded by Cargill Inc. in 198, CarVal Investors is a global investment fund manager. “With refined product exports from the U.S.

11 Jun 2013

Product Tanker Demand Upside Potential; Theory and Reality

Figure 1 (Source: McQuilling Services)

McQuilling Services said it continues to hold a contrarian view in contrast with the positive sentiment that surrounds the clean tanker market and robust MR2 ordering. The company released an industry note outlining their views of the tanker industry. “In an effort to validate our opinion, we compiled the clean product trade data that was used for McQuilling Services Tanker Market Outlook this year. We arranged the 225 trades (15 x 15 regions) in descending order from the longest to shortest distances, classifying the top 113 trades as long haul trades and the bottom 112 as short haul trades.

11 Apr 2013

New U.S. Tankship Company Secures Huge Investment

Ridgebury Tankers LLC announce a $200 million commitment from Riverstone Holdings LLC, alongside a $5.7 million commitment from Ridgebury management. The Connecticut-based Company will use the capital to acquire clean product carriers of all sizes and in the crude sector will focus primarily on Suezmax vessels. Ridgebury is led by its Founder and CEO, Bob Burke , who has been involved in the shipping industry for over 30 years in a variety of capacities. Mr. Burke's extensive executive shipping experience includes tanker operations, chartering activities for vessels, direct equity investments and financings, and the ownership and operational management of companies across several shipping sectors.

18 Mar 2004

Construction Continues on New Bouchard ATB

Bollinger Gulf Repair L.L.C., a Bollinger Shipyards, Inc., shipyard, has completed the retrofit of a Bouchard Coastwise Management Co., tug and barge to an articulated (ATB) unit utilizing the Intercon Coupler System. The 446-foot, 125,000 BBL (barrel) black oil Barge B. No.175 which was renamed Barge B. No.275, was transformed from a single hull to double hull vessel to meet the requirements of OPA ‘90. Her stern was modified with the matching Intercon ladder to accept the bow of the 127-foot tug CAPT. FRED BOUCHARD, which was retrofitted with ram assemblies of the Intercon system.

25 Jun 2008

Scomi Marine to Operate Tankers in Vietnam

Scomi Marine plans to jointly operate five clean product tankers with its Vietnamese partner over the next three years as part of the company’s strategy to increase the revenue contribution of its offshore support services arm, reports said. Scomi Marine has a 20% stake in Southern Petroleum Transportation Joint Stock Company (PV Trans Petro), the prospective main clean petrol product transporter for PetroVietnam’s proposed refineries.    Source:  Edge Daily

21 Jan 2009

Cathelco Joint Venture, Brazil

The resurgence of shipbuilding in Brazil has led Cathelco to set up a joint venture with Workship do Brasil, Rio de Janeiro based marine equipment suppliers, which will now be known as Cathelco Brasil. Cathelco, based in the UK, is a manufacturer of marine pipework anti-fouling systems and impressed current cathodic protection (ICCP) systems for ships, FPSOs and semi-submersibles. Cathelco currently has over 20,000 installations on record. The revival of shipbuilding in Brazil is being driven by the success of Petrobras…