Intermediate Fuel Oil News

Further disruption in ocean freight rates expected despite best efforts from leading carriers, according to Xeneta Container Rates Alert.Long-term contracted ocean freight rates for carriers continued their downward trend through the month of October, it pointed out.The latest freight data from the XSI Public Indices report from Xeneta shows a continued drop in contracted freight rates as the industry heads into the key seasonal months.Rates on a number of key routes have continued a steady downward slide since early summer but have yet to fall below the levels seen one year ago, nor at the start of this year.The company’s XSI (Xeneta Shipping Index) which reports on the long-term contracted market…

Part I: Enhancing Engines & Fuels"Wood Mackenzie forecasts a 25 percent increase in price for lower sulfur content fuel based on a SOx scrubber adoption rate of about two percent, but some scenarios could cause LSFO prices to spike by as much as 60 percent."Around 80 percent of global trade is carried by sea. With more than 125,000 commercial and naval vessels operating around the world, ship-engine emissions are projected to rise by 250 percent by 2050 unless controls are imposed.

The advent of industry wide tightening of allowable sulfur emissions is getting nearer. Suddenly, with the deadline now little more than one year away, the countdown clock will very soon be ticking much louder. Simply stated, the cap on allowable sulfur content in marine fuels, presently at 3.5 percent in many geographical regions, will be reduced to 0.5 percent in January 2020. The 0.1 percent sulfur cap, already in effect since 2015 in coastal Emissions Control Areas (ECAs) in Europe and North America…

The International Bunker Industry Association (IBIA) has announced that it will be working with the South African Maritime Safety Authority (SAMSA) to develop a Bunkering code of practice for the supply of fuel from offshore barges. Offshore bunkering is currently banned in South Africa, but SAMSA is taking steps to open the market to offshore providers. SAMSA has granted provisional permission to Aegean Marine Petroleum Network Inc to deliver intermediate fuel oil (IFO) in Algoa Bay OPL area. The agreement is subject to Aegean Marine meeting the terms of Act 6 Section 21 (1) (b) of the Marine Pollution (Control and Civil Liability Act 1981).

Last week (ending 22, June 2012) oil bunker prices dropped in key ports across the world IFO380 has made double-digit drops in Singapore, Rotterdam, Fujairah, and Houston, and all four ports once again reached new lows for the month reports 'Ship & Bunker'. (IFO 380 is Intermediate fuel oil with a maximum viscosity of 380 Centistokes (<3.5% sulphur). In Asia, Singapore IF380 prices dropped by $11.00 bringing the price to $563.50, while Hong Kong IFO380 fell for the fourth day this week dropping $10.00 to $585.00 per metric tonne (pmt). LA / Long Beach continued on a downward trend, IFO380 chalking up an 11th consecutive day of losses by dropping $7.50 to $562.50 pmt.

MOL announced that it has voluntarily enrolled two of its vessels, the MOL Endowment and MOL Experience, in the Port Authority of New York and New Jersey Ocean Going Vessel Low Sulfur Fuel Program. MOL is one of the first ocean carriers to enroll in the Low Sulfur Fuel program, and is the first of the Japanese carriers to do so. The program provides incentives to operators of ocean vessels to utilize low-sulfur fuel in their main propulsion and auxiliary engines instead of bunker fuel known as Intermediate Fuel Oil 380. Switching to low-sulfur fuels reduces emissions of fine particles as well as carbon dioxide, nitrogen oxides, and nitrous oxide and contributes to the improvement of the environment.

SMIT Salvage achieved the pollution-free refloating of the product tanker Nino today. This vessel grounded on South Africa’s Wild Coast, around 60 miles north east of East London, on July 18, while carrying a part cargo of 7,700 tonnes of gasoil and gasoline. The vessel went aground at a very remote location. SMIT obtained a LOF/SCOPIC salvage contract and immediately mounted a major casualty and pollution prevention operation. Vessels mobilised in the first few hours included the Wolraad Woltemade – one of the world’s largest salvage tugs, the anchorhandling tug Pentow Service, the environmental patrol vessel S.A. Kuswag 1 and an inshore survey vessel (required to survey the shallow waters around the grounded Nino).

Owners of a ship that ran aground on an Aleutian Island will plead guilty to illegally discharging its cargo and have agreed to pay a hefty fine, reports said. IMC Shipping Co. Pte. Ltd. (IMC) of Singapore will also plead guilty to killing hundreds of seabirds when its 738-ft. freighter, Selendang Ayu, ran aground Dec. 8, 2004, and broke in two on the north side of Unalaska Island, said U.S. Attorney Nelson Cohen. The vessel was carrying an estimated 442,000 gallons of fuel oil and some diesel. About 336,000 gallons of intermediate fuel oil and diesel spilled, along with 66,000 tons of soybeans. During rescue operations, a Coast Guard helicopter carrying Selendang Ayu crew members from the tanker crashed.

Response teams continue to clean up an oil spill around and underneath Pier 91 at Smith Cove in Elliott Bay today. The main area of impact of the oil appears to be contained underneath Pier 91 of the Port of Seattle. The cleanup is being coordinated with the Port of Seattle. The assessment and labor intensive cleanup of the impacted shoreline is to continue into Friday and possibly the weekend. Cleanup crews are aggressively working to remove all the spilled oil on the deck and hull of the Songa Hua, and have recovered approximately one gallon of the spilled intermediate fuel oil from Elliott Bay, while oil stains and some recoverable oil are visible on the cement pilings underneath pier 91 and along the rocky "rip-rap" on the shore.

The Norwegian International Register freighter Lysfoss sailed from Belfast on May 20, bound for Bremen to carry out repairs, Reuters reported. The 3,728-dwt freighter was being escorted by a tug. Lysfoss sustained damage when it ran aground off the west of Scotland on May 7 carrying a small amount of hazardous waste plus 3,718 tons of paper and timber and was refloated on May 12. There were 30 tons of diesel oil and 130 tons of intermediate fuel oil on board when it ran aground.